Most employers fund dental and optical benefits through a health cash plan at roughly £5–£15 per employee per month, which reimburses check-ups, treatment, glasses and lenses up to annual limits. Alternatives are dental/optical add-ons to a PMI scheme or standalone dental plans (Denplan-style). Employer-paid cover is generally a taxable benefit in kind.
- ✓A cash plan at £5–£15 per head per month covers routine dental and optical up to set annual limits.
- ✓Dental and optical are everyday-use benefits — most staff claim every year, unlike PMI.
- ✓Employer-paid cover is generally a benefit in kind: P11D reporting and Class 1A NIC at 15%.
Why dental and optical punch above their weight
Private medical insurance is the most-valued voluntary benefit in the UK, but it has a quiet weakness: most employees don't claim in any given year, so the benefit is invisible until something goes wrong. Dental and optical are the opposite. Nearly everyone needs a check-up, a hygienist visit, an eye test or new glasses within any 12-month window — so a benefit that reimburses those costs is felt, used and talked about from month one.
The sums are meaningful too. NHS dental charges run to roughly £27 for a check-up and over £320 for band 3 work like crowns and dentures — where you can find an NHS dentist taking patients at all. Private check-ups commonly cost £40–£80, a white filling £100–£250, and a pair of prescription glasses easily £100–£300. For an employee, £150–£300 a year back on routine costs is a benefit they can price instantly.
Route 1: health cash plans — how most employers do it
The workhorse of dental and optical benefits is the health cash plan. The employer pays roughly £5–£15 per employee per month, and employees claim back what they spend — on any dentist or optician, NHS or private — up to annual limits per category. There's no network to navigate: pay, photograph the receipt, get reimbursed within days.
| Benefit | Typical annual limit (entry-level plan) | Typical limit (mid-tier plan) |
|---|---|---|
| Dental (check-ups & treatment) | £60–£100 | £150–£250 |
| Optical (tests, glasses, lenses) | £60–£100 | £150–£250 |
| Physiotherapy & therapies | £100–£200 | £250–£450 |
| Indicative cost per head | £5–£8/month | £9–£15/month |
Cash plans typically accept pre-existing conditions for routine benefits and cover children free on many schemes, which makes them easy to launch: no underwriting, no exclusion conversations, claims from day one or after a short qualifying period. Providers like Westfield, Simplyhealth, Medicash and Health Shield dominate this market.
Utilisation is the quiet argument for this route: where medical insurance claims touch a minority of staff in any year, cash plan claim rates routinely run far higher — the receipts arrive monthly, and the benefit stays visible all year. For an employer measuring value per pound of benefits spend, that frequency is hard to beat at £5–£15 a head.
Route 2: PMI add-ons and standalone dental plans
If you already run a company PMI scheme, most insurers offer a dental and optical add-on — Bupa, AXA Health, Aviva and Vitality all sell one. Add-ons typically cost £5–£15 per employee per month on top of the medical premium and reimburse a percentage of costs (often 80–100% for routine work) up to annual limits, sometimes with higher allowances for accident-related dental work. The appeal is one insurer, one renewal, one app.
The third route is a standalone dental plan — the Denplan model (now part of Simplyhealth), Bupa Dental and similar. These are dental-only products, often built around either capitation (a monthly fee covering defined routine and restorative care with a specific practice) or insurance-style reimbursement. They suit employers whose staff care most about dental, and typically run £10–£25 per employee per month depending on the level. Optical then needs handling separately — which is why the all-in-one cash plan remains the default for most small companies.
Price a cash plan or dental add-on for your team
Tax: dental and optical benefits are BIK
Employer-paid dental and optical cover — whether via cash plan, PMI add-on or dental plan — is generally a taxable benefit in kind. The premium value is reported per employee (P11D now, with mandatory payrolling arriving from April 2027), the employee pays income tax on it, and the company pays Class 1A NIC at 15%. Premiums are generally an allowable business expense for corporation tax.
Because premiums are small, so is the tax: a basic-rate taxpayer on a £10-a-month cash plan pays around £24 a year in BIK tax — a footnote next to £200 of claimable benefit. One genuine exception: an eye test the employer is required to provide for screen users (and corrective glasses required specifically for screen work) is a health and safety obligation, not a BIK, when handled correctly. General glasses funded through a benefit remain taxable.
The same P11D mechanics apply as for medical insurance — our guide to the tax treatment of company health cover walks through it.
Choosing between the three routes
- Cash plan. Best all-round default: dental, optical and therapies in one product at £5–£15 a head, pre-existing conditions accepted, everyday claims. The felt-value champion.
- PMI add-on. Best if you already run company PMI and want one insurer and one renewal; broadly similar cost, integrated claims.
- Standalone dental plan. Best when dental is the specific ask — richer dental limits than a cash plan — but you'll still need an answer for optical.
Plenty of employers run a PMI-plus-cash-plan stack: PMI for the serious stuff, a cash plan for the everyday. At roughly £57 average per head for group PMI plus £10 for a cash plan, that combination covers both the crisis and the check-up. And if the budget only stretches to one of them, remember which one the team will feel this year — a £10 cash plan gets used by nearly everyone; £57 PMI gets used by whoever falls ill. We compare cash plans, add-ons and dental plans alongside company health insurance, so you can see what the combinations cost for your headcount.
Frequently asked questions
What's the cheapest way to offer staff dental and optical benefits?
A health cash plan, at roughly £5–£15 per employee per month. Entry-level plans reimburse around £60–£100 a year each for dental and optical, mid-tier plans £150–£250 each, and they usually accept pre-existing conditions with claims on any dentist or optician, NHS or private.
Are dental and optical staff benefits a taxable benefit in kind?
Generally yes. Employer-paid cash plans, PMI dental add-ons and dental plans are all BIK: the premium is reported per employee (P11D, payrolled from April 2027), the employee pays income tax on it, and the company pays Class 1A NIC at 15%. The amounts are small because premiums are small.
Do health cash plans cover glasses and contact lenses?
Yes — optical is a core cash plan benefit. Employees claim back the cost of eye tests, glasses, prescription sunglasses and contact lenses up to an annual limit, typically £60–£250 depending on plan level, from any optician. Receipts are submitted by app and reimbursed within days.
What's the difference between a cash plan and a Denplan-style dental plan?
A cash plan reimburses dental and optical costs up to annual limits at any practice. A Denplan-style plan is dental-only and often capitation-based — a monthly fee covering defined routine and restorative care at the employee's registered practice, usually with richer dental limits but nothing for optical.
Can employers add dental cover to an existing company PMI scheme?
Yes. Bupa, AXA Health, Aviva and Vitality all offer dental (and usually optical) add-ons to group PMI, typically £5–£15 per employee per month. They reimburse a high percentage of routine costs up to annual limits and keep everything with one insurer, one renewal and one claims app.
Do staff dental benefits cover orthodontics and cosmetic work?
Generally no. Braces, whitening, veneers and other cosmetic work are standard exclusions across cash plans, PMI add-ons and most dental plans, and major restorative work is often capped or subject to waiting periods. Accident-related dental damage is usually covered more generously — check each plan's schedule.
Are employer-paid eye tests for screen users a taxable benefit?
Generally no. Eye tests employers must provide for display screen users — and glasses required specifically for screen work — are a health and safety obligation, not a benefit in kind, when provided correctly. Glasses for general use funded through a benefit scheme remain taxable. Confirm details with your accountant.
Do dental benefits through work cover pre-existing dental problems?
Cash plans generally do — pre-existing conditions are accepted for routine reimbursement benefits, though treatment already planned or in progress at joining is commonly excluded, and some plans apply short qualifying periods. Capitation dental plans assess the employee's dental health at joining and price accordingly.
How much do employees actually save with a dental and optical benefit?
A typical user claiming a check-up, a hygienist visit, an eye test and a contribution to glasses can recover £150–£300 a year on a mid-tier plan costing the employer £9–£15 a month. Because most staff claim every year, utilisation is far higher than on medical insurance.
Can employees add family members to workplace dental and optical cover?
Usually. Many cash plans cover dependent children at no extra cost and let employees add a partner for an additional premium, often payroll-deducted. PMI dental add-ons and dental plans typically offer partner and child cover at extra cost. Family terms vary, so check the specific scheme.