Preparing for budget changes: how employers can support employees with benefits

As the Chancellor’s budget announcement approaches, employers across the UK are bracing for potential shifts in economic policy that could impact both business operations and employee wellbeing. In times of financial uncertainty, having a proactive employee benefits strategy is no longer a nice-to-have, it’s essential. 

Why budget changes matter for employers 

Budget changes can influence everything from tax thresholds to public spending, directly affecting employees’ disposable income and financial stability. For employers, this presents both a challenge and an opportunity: how to support staff through economic shifts while maintaining engagement and retention. It’s also a challenge for businesses themselves, as they are likely to face tax implications that could impact their financial health. In this context, the role of the finance team becomes crucial, they must keep operations running smoothly, ensure all costs are covered, and avoid workforce reductions wherever possible. At the same time, HR teams are tasked with keeping employees motivated, often without the possibility of pay rises and in the face of potential budget cuts, which can make them one of the first areas to experience resource reductions. 

The role of employee benefits in financial wellness 

A well-designed benefits programme can act as a buffer against financial stress. Whether it’s through salary sacrifice schemes, discount platforms, or flexible benefits, employers can help employees stretch their income further and feel more secure. These benefits don’t just help staff save significantly on everyday expenses; they can also provide vital support in unexpected situations. For example, if an employee’s fridge breaks down and they don’t have access to credit or the means to pay for a new one upfront, having access to interest-free instalment options through a workplace home & tech scheme can make a real difference. 

Companies like BHN Extras enable employers to offer this kind of financial wellbeing support at zero cost to the business. Their wide range of employee benefits can be tailored to suit different workforce needs, from everyday savings to seasonal support, helping employees manage their finances more confidently and avoid unnecessary stress. You can explore their full offering here. 

Supporting low-income staff proactively 

Lower-paid employees are often the most vulnerable to economic changes. In fact, according to PwC, over 20 million adults in the UK are considered financially under-served, meaning they may struggle to access credit from mainstream lenders due to low income, poor credit history, or limited savings. This represents nearly one in three adults, and highlights the urgency for employers to provide meaningful support. Employers can take steps to ensure their benefits strategy includes targeted support, such as food and retail discounts, travel savings, and financial education. BHN Extras shares practical tips on this in their blog post How to Support Low-Paid Staff with Employee Benefits. 

Building financial resilience year-round 

Financial wellbeing isn’t just a seasonal concern. However, moments like the festive period can amplify financial pressure. Employers can help by offering benefits that make money go further, like prepaid cards, cashback offers, or gift-card discounts. Learn more in How to Help Your Employees’ Salary Stretch Further This Christmas. 

For a deeper dive into how benefits impact financial wellness, check out Financial Wellbeing for Employees: Everything You Need to Know. 

Take action before the budget hits 

Preparing for budget changes with employee benefits means acting now. Employers who invest in a thoughtful benefits strategy will be better positioned to retain talent, boost morale, and navigate economic shifts smoothly. 

If you're ready to explore how BHN Extras can support your team, request a demo and start building a benefits programme that works, no matter what the budget brings.