Category: Health benefits · Reviewed by Taylor Watts, Broker · New Business · Last reviewed 2026-06-10
A group optical plan is an employer-sponsored insurance covering eye examinations, prescription spectacles and contact lenses for employees. The plan typically reimburses 100% of a defined annual limit (£50–£200 for examinations and a contribution to glasses), with buy-up options. Employers also have a separate statutory obligation under the Health and Safety (Display Screen Equipment) Regulations 1992 to fund eye and eyesight tests for designated DSE users, regardless of whether they also provide an optical plan.
Category: Health benefits Also known as: Group optical plan, corporate eye care Typical limit: £50–£200 per year Related concepts: Healthcare cash plan, Dental plan group, Health and Safety Executive HSE
The plan provides reimbursement for routine eye-care expenses. Where the employee is a DSE user, the eye test cost is recoverable separately under regulation 5 of the DSE Regulations 1992 regardless of the optical plan benefit; the optical plan contribution to glasses, if any, supplements (rather than satisfies) the employer’s DSE obligation.
The optical plan is regulated under the FCA Handbook ICOBS. The statutory employer obligation in respect of DSE users is set out in the Health and Safety (Display Screen Equipment) Regulations 1992 (SI 1992/2792). Tax: P11D benefit on the employee; corporation tax deductible for the employer; Class 1A NIC; IPT applies. The DSE eye test is, however, not taxable as a benefit in kind because it discharges a statutory obligation (ITEPA 2003 s.320A).
Standalone optical plans are unusual; the cover is more commonly bundled into a healthcare cash plan or a wider wellbeing package. The plan may operate through a network (such as Specsavers Corporate Eyecare) with discounted fees, or by reimbursement of any optician’s invoice up to the annual limit.
An employer with 100 DSE-user employees provides a group optical plan with a £100 per employee annual limit. The plan also discharges the DSE Regulations 1992 obligation by paying for eye tests in full for designated DSE users (the £100 limit is generous enough). An employee claims £30 for an eye test and £80 for new lenses (single vision) — £110 in total; £100 is reimbursed under the plan and the £30 eye test cost is not taxable on the employee.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
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