The Government classified EAPs as an employee benefit and, as such, exempt from tax relief.
The industry body for EAPs, the UK Employee Assistance Professionals Association (EAPA), has reacted with disgust.
Its chairman, David Smith, said: "Although the exact detail surrounding how the removal of tax relief for EAPs will actually take effect is yet to be released, the EAPA is very disappointed that the Government has chosen to classify EAPs as an employee benefit, rather than the strategic intervention that over 5,200 organisations in the UK have invested in.
"The slower growth predictions, higher inflation and higher living costs highlighted in today's Budget signal that EAPs have never been needed more by organisations and individual employees. In fact, in this climate, EAPs will now have a greater role to support employees and assist workers and their employers when it comes to addressing issues and problems that may affect performance," he says.
"Of course, there are opportunities for the employee assistance market following today's announcement and the UK EAPA anticipates that many providers will be able to work more closely with employers to offer a wider range of employee support and health and wellbeing services. This will certainly strengthen the position of EAPs as a strategic intervention that can support and sustain business growth and performance."
