Learn about public, private and employer sponsored health insurance in the UK
SafetyNest Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own independent tax, legal and accounting advisors before making any decisions or engaging in any transaction.
How does healthcare work in the United Kingdom?
The UK's National Health Service (NHS) is a comprehensive system funded by general taxation. It provides most healthcare services free of charge to citizens and legal residents.
🟢 Services covered by the NHS include:
Primary care: General practitioner (GP) consultations, preventative care, vaccinations, and maternity care
Secondary care: Hospital treatment, specialist consultations, mental health services, and emergency care
Tertiary care: Highly specialized treatments and surgeries
In Scotland, Ireland and Wales, prescription medication is free for all ages.
🛑 Services not covered by the NHS:
Dental care: Routine dental care. Some groups, including children, pregnant women, and low-income individuals may be eligible for free dental care or financial assistance.
Some prescription charges: There is a standard prescription charge for most medications. Some individuals may be exempt such as children, pregnant women, elderly people, and those with low incomes. In Scotland, Ireland and Wales, prescription medication is free for all ages.
Optometry services: Eye tests and glasses are not usually covered by the NHS for adults. Some groups may be eligible for free eye tests or financial help for glasses. In Scotland, everyone is entitled to a free eye examination every 2 years.
Cosmetic treatments: Cosmetic surgery or treatments that are not medically necessary are not covered by the NHS.
Private healthcare: The NHS does not cover treatments, consultations, or services provided by private hospitals.
Typical health insurance
Legal residents in the UK are entitled to public healthcare funded through general taxation. 18% of a citizen’s income tax, which is about 4.5% of the average citizen’s income in the UK, goes toward public healthcare. While citizens are entitled to the NHS, they have the option to buy additional private health insurance.
Private health insurance
The private sector is much smaller than the public one. People elect to use private health insurance to access shorter wait times, a wider range of specialists and treatments, more comfortable hospital facilities, and additional services not covered by the NHS including dental and vision care.
In 2019, 10.3% of the UK’s population had private health insurance, which is usually accessed through an employer or purchased directly from the carrier.
Insurance for expats
Legal residents of the UK can access NHS services by registering with a local GP. EU citizens may need to show proof of their settled or pre-settled status, while non-EU citizens may be required to pay the Immigration Health Surcharge as part of their visa application, which gives them access to the NHS. Expats may also choose to use private health insurance in the United Kingdom which can provide additional health services including comprehensive dental and access to private facilities.
Mandatory employee benefits and regulations in the United Kingdom
There are a handful of regulations and requirements for employee benefits in the United Kingdom.
Working Time Regulations mandate that full-time employees receive at least 28 days (5.6 weeks) of paid annual leave and not exceed an average of 48 hours per week, unless they choose to opt-out. Part-time workers also qualify for 5.6 weeks of paid leave, with the total number of days being proportionate to their work schedule.
Depending on the employer, industry, and job level, typical employee benefits offered in the UK include:
Health insurance
Life insurance
Income protection
Training and development
Childcare vouchers (tax-free vouchers that can be used to pay for childcare)
Employee assistance programs (to provide support to employees with personal or work-related issues, such as mental health support or financial advice)
Flexible working (options such as flexible hours, remote work, or job-sharing)
Cycle-to-work schemes (tax incentives to purchase a bicycle and cycle to work)
Health insurance for employees in the UK
While health insurance is not a required benefit for UK employees, it is an attractive one. Private health insurance can offer full coverage for services that are not included in public healthcare including comprehensive dental and vision. It also provides access to quicker care and private facilities.
For international companies, global group health insurance is an attractive option because one plan can be used to cover an entire global workforce. This single plan approach to health insurance means minimal administrative work and equitable benefits for a global team.
Employee benefits tax in the United Kingdom
In the United Kingdom, the HM Revenue & Customs (HMRC) applies taxes to benefits in kind such as health insurance provided by a company to its employees. Since this is considered to be income, benefits in kind are subject to income tax. However, personal policies are exempt from taxation as a general rule.
Rate/assessment: The amount of tax the employee pays will be based on their income tax band – 20, 40 or 45 percent.
Interested in providing global health coverage to your team? Chat with us!
If you’re looking for coverage for yourself and your family, check out Nomad Health.
Laura Scott
Head of Marketing, Remote Health at SafetyWing
As the marketing lead in our Remote Health team, Laura specializes in product marketing, project management and lead generation.
Laura Scott
Head of Marketing, Remote Health at SafetyWing
As the marketing lead in our Remote Health team, Laura specializes in product marketing, project management and lead generation.
