IPT continues to be a big earner for HM Govt, here’s the latest stats;
According to this morning’s HMRC data, Insurance Premium Tax (IPT) receipts have continued to rise in the first quarter of the 2026/27 financial year, bringing the three-month total (April-June) to £2.172 billion, exceeding last year’s £2.170 billion total across the same period by £2 million.
At a monthly level, June 2026 receipts stood at £52 million – £11 million higher than the previous year where receipts stood at £41 million.
The latest figures follow a record annual total of £9.04 billion for the 2025/26 financial year, which exceeded the previous year’s full-year total of £8.88 billion by £157 million.
The Office for Budget Responsibility’s Spring Statement forecasts indicate that IPT is now expected to raise £57.8 billion between 2025/26 and 2030/31, a £500 million upgrade on estimates made following the Autumn Budget in November (£57.3 billion). Continued demand for health-related insurance products is expected to remain a key driver of growth.
Cara Spinks, Head of Life & Health at leading financial services consultancy Broadstone, commented: “IPT receipts have continued to grow in the early part of the new financial year, building on the record levels seen in 2025/26.
“Demand for health insurance remains strong as employers and individuals continue to look for ways to access healthcare more quickly, particularly while pressure on NHS services persists. At the same time, rising healthcare costs are feeding through into higher premiums, which is also contributing to increased IPT receipts.
“As the new cabinet under Andy Burnham looks to tackle economic inactivity, improve prevention and support a healthier workforce, there is a strong case for reviewing the tax treatment of health insurance. Health insurance including health cash plans increasingly provide access to early intervention, mental health support and rehabilitation services that help people remain in work or return to work more quickly. A targeted reduction in IPT for these products could improve access to preventative healthcare, support workforce participation and reduce pressure on NHS services at the same time.”
Cormac Bradley, Senior Actuarial Director at leading independent financial consultancy Broadstone, said: “IPT receipts have edged up in the first quarter of the financial year, standing £2 million higher than the same period last year following a strong June.
“The recent surge in IPT revenues has been closely linked to the sharp rise in insurance premiums over the past few years, as insurers have responded to higher claims costs and wider economic pressures. While the pace of increases is starting to ease, many policyholders are still facing higher renewal costs than they would have done previously.
“The latest forecasts highlight just how significant IPT has become as a source of government revenue. But insurance is not simply a tax base – it is a vital safety net for households and businesses, helping them manage uncertainty and protect against unexpected costs.
“As the new Burnham Government considers measures to support growth and reduce pressure on household finances, the impact of insurance affordability should form part of that discussion.”
Be the first to comment