Insurance Premium Tax (IPT) receipts in the United Kingdom amounted to £1.301 billion in August 2025, according to the latest data from HM Revenue and Customs (HMRC).
The figure, confirmed in official monthly receipts data, compares with £1.352 billion in August 2024, reflecting a year-on-year decrease of £51 million.
Despite the year-on-year decline, cumulative receipts remain ahead of last year’s pace. In the first five months of the 2025–26 financial year, IPT collections reached £4.50 billion, up from £4.24 billion in the same period a year earlier. That represents an increase of £72 million, underscoring the continued strength of the levy as a revenue source for the Treasury.
Brett Hill, head of health and protection at consultancy Broadstone, said the latest numbers illustrate the scale of IPT inflows, which have risen steadily in recent years. He attributed part of the growth to increased demand for health insurance products, as more people turn to private cover in response to difficulties accessing NHS services.
“An important driver behind this growth is likely to be surging demand for health insurance products as more individuals seek out alternative provision amid poor access to NHS services with millions left in limbo with undiagnosed and untreated conditions,” he said.
Hill noted that employers have widened benefit packages to include private medical insurance and health cash plans in an effort to support employees, manage absenteeism and sustain productivity.
“But this trend carries consequences – rising claims and more complex, expensive treatments due to delayed care are already pushing premiums higher, putting pressure on affordability for individuals and businesses,” he added.
The upward pressure on costs has raised questions about affordability for both businesses and individuals. Hill argued that if the government is aiming to ease strain on the NHS and encourage economic growth, it should avoid raising IPT further in the Autumn Budget.
“If the Government wants to boost growth and ease the strain on the NHS, it must resist any hike to Insurance Premium Tax in the Autumn Budget as it looks for revenue raising measures to fill its fiscal gap,” Hill suggested.
With receipts for August slightly below last year but the year-to-date total ahead, the data highlights how shifts in healthcare demand and employer policies continue to influence both the insurance market and tax collections.
Should the government freeze Insurance Premium Tax in the Autumn Budget, or is an increase necessary to address fiscal needs? Share your views in the comments.
