PurposeThe purpose of this paper is to evaluate the use of a scholarship scheme to support mental health workforce development.Design/methodology/approachNursing and allied health recipients (n = 72) of a scholarship for postgraduate mental health study provided quantitative and qualitative feedback via an online survey.FindingsBenefits of the scholarship scheme include helping to overcome financial barriers to accessing higher education, increased motivation to study, increased knowledge and skills and enhanced positive feelings towards the recipient’s organisation. A total of 44% of participants reported being majorly or completely influenced to remain working in the organisation due to provision of the scholarship.Originality/valueThis study asks recipients to evaluate the scholarship scheme rather than the associated postgraduate education and provides preliminary support that scholarships are beneficial even when the amount of funding is less than half of course fees and the support from the employer is primarily monetary. The provision of scholarship funding can encourage existing professionals to undertake postgraduate study and attract them to pursue mental health specialisation instead of other health specialisations. Provision of scholarships is one strategy which can positively impact on mental health workforce retention in allied health professionals.