More than eight in 10 employees (81%) have reduced their spending on routine healthcare costs, including optician’s appointments, dental services, and physiotherapy due to the cost-of-living crisis, according to the Health Shield Friendly Society.
According to a snapshot survey carried out this month by the Society, 36% of those surveyed claimed that they have reduced spending on healthcare “a lot”, with one in three employees having cancelled check-ups with their GP or dentist.
Even more worryingly, the research shows that nearly two in five (37%) have either skipped meals already or are planning to, and nearly nine in 10 people (87%) are already purchasing cheaper food.
Jennie Doyle, head of marketing at Health Shield, said: “It’s a huge worry that basic healthcare seems to be taking a hit.
“While the cost-of-living crisis is affecting everyone, it’s clearly those at younger ages and at the lower end of the salary scale that are having to make the most sacrifices.”
This extra strain upon younger age groups is evident, as the report found that over 80% of the people surveyed between the ages of 18 to 44 said that they had reduced their routine healthcare spending.
Additionally, the most impacted in terms of reducing their healthcare spend are those earning between £10,000 to £14,999pa (84%) and those earning £15,000 to £24,999pa (86%).
Nearly half (49%) of employees say a pay rise of £100-£200 a month would be needed to make a meaningful difference in supporting them with the increasing cost-of-living.
Doyle added: “While a pay rise of £100 to £200 a month per employee might be challenging right now for many employers, an investment of around £8 a month per person in a Health Cash Plan could be more realistic.
“Especially when this is considered a genuine investment, not only in the health of employees, but also in the health of the business; helping reduce absenteeism and presenteeism.”
These shocking statistics come against a backdrop of falls in average pay, in real terms (adjusted for inflation).
Total pay fell by 2.6%, while regular pay shrank by 2.8% from May to July this year, the latest data currently available.
This remains among the largest falls in growth since comparable records began in 2001, according to the Office for National Statistics.
Meanwhile, for just £100 a year (£8 a month) per employee, on average, Health Shield proposes that employers provide a company-paid Health Cash Plan, with the potential to help an employee be around £544pa better off, while still maintaining essential everyday health needs.
Doyle concluded: “This obviously has positive knock-on effects on organisational reputation too, in terms of demonstrating that if people are placed first, the profits will take care of themselves.
“This was played out admirably by many employers during the height of the Covid-19 pandemic. Now it’s time to show it during the cost-of-living crisis.”
