Access to Work Scheme Costs Surge as Demand Soars for Mental Health Support and Tech

The cost to taxpayers of the Access to Work benefit scheme has leapt by over 20 percent in just one year, according to new official figures. The Department for Work and Pensions revealed that annual spending on the scheme reached £321 million by March, a sharp rise fuelled in part by growing use of workplace technology and assistive equipment. This marks a near doubling of expenditure since before the pandemic, when the annual bill stood at £154 million.

The scheme, designed to support people with mental, neurological or physical health conditions in employment or attending interviews, provides claimants with up to £70,000 annually. Funded items now include smartwatches, workplace coaches, noise cancelling headphones, and sunlight alarm clocks. A surge in awareness, attributed partially to social media influencers sharing guidance on accessing support for conditions such as ADHD, has driven applications higher. Department data showed mental health conditions accounted for 38 percent of claims, with learning disabilities representing a further 11 percent.

Although the average award per claimant was £4,000, the overall number of recipients jumped to 74,190 for the 2024 to 2025 financial year, a 10 percent increase versus 67,240 the year prior. The latest data comes amid political scrutiny, as rising benefit claims add to pressures on public finances. Rachel Reeves faced growing calls to tighten welfare spending after Labour Party backbench resistance forced the cancellation of some planned cuts.

Access to Work approvals have dropped for the first time since the pandemic, following reported funding reductions and growing restrictions at the point of renewal. Nearly a quarter of approved grants funded aids and equipment, ranging from fidget toys and white noise machines to ergonomic technology. Of those accessing payments, 75 percent were in employment, 12 percent were self-employed, and 9 percent were unemployed. Notably, claimants need not present a formal diagnosis to apply, and the application process may take as little as 20 minutes.

Demand for health-related benefits has broadly accelerated in the wake of the pandemic, with mental illness, autism, ADHD, and musculoskeletal concerns driving the upward trend. Without significant reform, government forecasts project the total cost of health-related benefits will reach £100 billion by decade’s end. Ministers are currently reviewing outcomes of an ongoing consultation regarding the future of Access to Work, conscious of the need to balance effective workplace inclusion with fiscal discipline. A government spokesperson emphasised ongoing collaboration with disabled people and their advocates to improve the scheme as part of a wider plan to support entry into secure roles and maximise work opportunities.