UK employers are being forced to overhaul their healthcare and benefits strategies as demand for weight-management drugs such as Ozempic rises sharply among employees, new research shows.
More than one in four UK workers have already used a weight-management medication, while around 40 per cent believe their employer should fund access through workplace healthcare schemes. In response, 44 per cent of employers say they are reviewing or fundamentally redesigning their health benefit offerings.
The findings are detailed in the Changing Face of Employee Health report by Howden Employee Benefits, which identifies GLP-1 weight-loss drugs as a defining issue shaping the future of workplace health provision.
Despite mounting pressure from staff, employers face a growing financial dilemma. Nearly nine in 10 businesses say they are currently satisfied with the return on investment from their healthcare plans. However, among employers that already cover weight-management drugs, half now regard them as a significant and rising cost concern. Almost half expect those costs to increase further, with one in five businesses identifying obesity-related conditions as the single biggest driver of escalating healthcare spending.
While just 5 per cent of employers anticipate a reduction in these costs next year, many acknowledge the longer-term trade-offs. Weight-related illnesses, including diabetes, are a major contributor to sickness absence and lost productivity. Around 72 per cent of UK employers are already investing in preventative health measures, and some see regulated access to weight-management drugs as a way to mitigate long-term health risks and reduce future business costs.
The report also warns that failing to adapt healthcare plans could create wider challenges. Medical inflation is forecast to reach 7 per cent in 2026, and when combined with general inflation, overall cost increases could exceed 10 per cent. This is forcing employers to make difficult decisions about which treatments to include and where coverage limits should be drawn.
Cheryl Brennan, managing director of Howden Employee Benefits, said the issue has moved beyond theory. “The demand for these drugs is obvious, and employers simply can’t afford to ignore it,” she said. “But the financial impact cannot be overlooked – it is already compelling business leaders to rethink plan design and budget priorities.”
Brennan added that while weight-management drugs can deliver meaningful health benefits, they should not be viewed as a standalone solution. “These medications are not a silver bullet. They must form part of a broader, more personalised health strategy with clear eligibility criteria. Employers will also need to justify why these treatments are covered ahead of others that remain excluded.”
As employee expectations continue to evolve, the report suggests workplace healthcare is entering a new phase, one defined by prevention, personalisation and increasingly tough financial trade-offs that will shape employee benefits strategies in the years ahead.
