CA Forum: Poll shows adviser fears over IPT and sal sac

screen-shot-2016-12-08-at-16-53-03The Chancellor’s increase in income premium tax will prompt a reduction in use of group PMI and could lead to a boost to corporate paid cash plans, according to delegates at the Corporate Adviser Healthcare and Group Risk Forum on Tuesday.

A poll of over 30 group risk and healthcare consultants at the event saw 57 per cent predicted a slight reduction in group PMI as a result of the change, with a further 7 per cent predicting a significant reduction.

Almost half of delegates – 45 per cent – thought the Autumn Statement changes to salary sacrifice would lead to reductions in life, IP and critical illness through salary sacrifice.

A big majority backed calls for elder care vouchers or tax credits for workers with carer responsibilities for older parents, an idea proposed by former pensions minister Baroness Altmann last month. Advisers also predicted an increase in demand for employee benefits that assist employees with caring responsibilities for older relatives.

 What impact will the insurance premium tax increase have on your employer clients’ usage of group PMI?

1. A slight reduction -57%
2. A significant reduction – 7%
3. No change – 32%
4. An increase – 4%
How will the insurance premium tax increase impact take up of corporate paid cash plans?

1. A slight increase – 27%
2. A significant increase – 7%
3. No change – 53%
4. A reduction – 13%
How will the Autumn Statement changes to impact take up of additional life, income protection and critical illness cover through salary sacrifice?

1. A slight reduction -32%
2. A significant reduction – 13%
3. No change – 52%
4. An increase – 3%
Would changing the interaction between group income protection and state benefits make it materially easier to distribute the product?

1. Yes – 94%
2. No – 6%
Which of these changes would be most likely to materially increase the amount of group income protection you distribute?

1. A tax break or NI waiver worth £30 per employee – 19%
2. A NI penalty for employers who do not offer health, wellbeing and return to work services – 75%
3. A less punitive treatment of group income protection in assessment for state benefits – 0%
4. None of the above – 6%
Have providers and the industry generally done enough to demonstrate return on investment for health and wellness programmes in the UK?

1. No, we desperately need evidence to support the health and wellbeing agenda – 81%
2. No, but I am not convinced that such evidence can be substantiated – 16%
3. Yes, there is enough evidence out there to make a positive case – 3%
Looking five years into the future, how much demand will there be for employee benefits that help workers with caring responsibilities for older parents?

1. About the same as today – 6%
2. A slightly greater market – 53%
3. A significantly greater market – 41%


Should the government introduce fiscal incentives such as elder care tax credits or vouchers, to stimulate market solutions to the growing crisis in elder care?

1. Yes – 88%
2. No – 12%