Britain’s welfare system is helping drive soaring demand for ADHD and autism diagnoses by making medical assessments a gateway to financial benefits, educational assistance and other support, a major government-commissioned review has warned.The 607-page report, led by clinical psychologist at University College London Professor Peter Fonagy, raises concerns that linking diagnoses to entitlements risks encouraging overdiagnosis and leaving children defined by their difficulties rather than their potential.It estimates that around four million children and young people – roughly one in five – are experiencing high levels of psychological distress, while warning that the growing reliance on diagnostic labels could have unintended consequences.“Systems do not merely absorb demand, they shape it,” the review states, arguing that diagnoses have become essential to accessing services that should also be available according to individual need.The report asks why diagnoses have assumed such importance, concluding that they validate people’s experiences while providing access to treatment, school support, workplace adjustments, welfare benefits and social care.It warns that financial incentives can distort assessments, encouraging applicants to emphasise their limitations to qualify for assistance. Such arrangements, it says, can undermine confidence in both assessments and services.Official figures illustrate the increase in claims, with the number of people receiving disability benefits whose main condition is autism surging from 79,395 in January 2019 to 268,965 in July 2026. Claims associated primarily with ADHD or attention deficit disorder also increased more than fourfold, from 23,741 to 106,087.NHS figures show almost 160,000 children were prescribed ADHD medication last year | GETTYRecorded diagnoses among children have also climbed sharply, with ADHD prevalence among teenage boys having increased almost 13x since 2000, while autism prevalence has risen more than 23x.Professor Sir Simon Wessely, of King’s College London and the review’s vice-chairman, warned that the country was approaching a critical point.“If these present trends continue, the risk of overdiagnosis and over-medicalisation is very, very likely,” he said.He also cautioned that diagnoses intended to unlock support could sometimes restrict opportunities, by shaping children’s expectations of themselves.“Sometimes it can actually, rather than open doors for you, it can also close certain doors,” he said.The review calls for tighter oversight of private assessment providers, which now conduct more than half of NHS-funded ADHD assessments, and over a third of autism assessments. NHS spending on independent ADHD services has more than tripled in three years, while some providers charge four times as much as others for comparable assessments.The report recommends bringing all diagnostic assessments under Care Quality Commission regulation, and prohibiting direct advertising of NHS-funded assessments.It says publicly funded services have expanded faster than safeguards designed to ensure quality and value.However, the authors stress that rising mental distress is real and cannot be explained by increased awareness alone. The proportion of 16-to-24-year-olds meeting criteria for a common mental health disorder rose from one in six in 1993 to one in four in 2024.Professor Fonagy attributed worsening prospects to economic insecurity, housing costs and social pressures, saying young people faced “a growing sense that their futures would be worse than their parents”.“They are not fragile. They are outnumbered,” he said.Health Secretary Yvette Cooper said services must prioritise earlier intervention to help young people remain in education and employment. She also pledged stronger regulation of ADHD and autism assessments to protect patients and prevent excessive NHS charges.The Independent Healthcare Providers Network said independent providers remained essential to expanding capacity and improving access, adding that it looked forward to working with the Government to deliver timely, high-quality assessments and support.