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Monday, January 19, 2026

Employers rethink healthcare benefits as weight-loss drugs reshape workplace provision

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UK employers are being forced to reassess their healthcare and benefits strategies as demand for weight-management drugs surges among employees, according to new research.

More than a quarter of UK workers have already used a weight-management drug such as Ozempic, while two in five believe their employer should fund access to these treatments through workplace healthcare plans. As a result, 44 per cent of employers say they are now reviewing, or fundamentally redesigning, their healthcare provision.

The findings come from the Changing Face of Employee Health report by Howden Employee Benefits, which suggests that blockbuster GLP-1 drugs are becoming a defining issue in the future of workplace health.

Despite the rising pressure from staff, employers are caught in a financial bind. Almost nine in ten businesses say they are currently satisfied with the return on investment from their healthcare plans, yet half of those already covering weight-management drugs now see them as a growing cost concern. Nearly half expect those costs to rise further, with one in five businesses citing obesity-related conditions as the single biggest driver of increasing healthcare spend.

While only 5 per cent of employers expect these costs to ease next year, many acknowledge the long-term trade-off. Weight-related illnesses such as diabetes contribute significantly to sickness absence and lost productivity. Around 72 per cent of UK employers are already investing in preventative health measures, and some see controlled access to weight-management drugs as a way to reduce longer-term health risks and associated business costs.

However, the report warns that failing to adapt healthcare plans could create wider problems. With medical inflation forecast at 7 per cent in 2026, and combined cost increases of more than 10 per cent once general inflation is included,  employers face difficult decisions about which treatments to cover and where to draw the line.

Cheryl Brennan, managing director of Howden Employee Benefits, said the issue is no longer hypothetical. “The demand for these drugs is obvious, and employers simply can’t afford to ignore it. But the financial impact cannot be overlooked – this is already forcing business leaders to rethink plan design and budget allocations.”

She added that while the drugs offer significant health benefits, they should not be treated as a cure-all. “Weight-management drugs are not a silver bullet. They need to sit within a broader, more personalised health strategy with clear eligibility guardrails. Employers will also have to justify why they cover these treatments ahead of others that remain excluded.”

As employee expectations evolve, the report suggests workplace healthcare is entering a new phase, one where prevention, personalisation and tough financial trade-offs will define how benefits are structured over the coming years.


Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

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