The Department for Work and Pensions (DWP) has unveiled a £60 million Innovation Fund aimed at helping disabled people and those with long-term health conditions into employment. The fund is part of the broader £3.5 billion Pathways to Work programme, which ministers say will provide tailored support for individuals whose health affects their ability to work.
Fund Details and Application Process
The DWP will invite organisations including employers, charities, and tech firms to apply for grants to trial new approaches that tackle barriers to employment. Applications are due to open in September 2026, with full guidance published closer to the date. The fund seeks bold, creative ideas that can be tested and scaled if successful.
Expert Panel Backing
Paralympic champion Baroness Tanni Grey-Thompson has endorsed the plan and will sit on an expert panel that helps decide which bids receive funding. She stated: "Finding and sustaining work matters enormously - not just for individual wellbeing and independence, but for society as a whole. We know that with the right support, disabled people can and do thrive in the workplace." The panel will include voices from disability charities, business organisations, technology specialists, and public services.
Economic Context
According to DWP figures, around 2.8 million people are currently out of work due to ill health, and economic inactivity linked to health conditions costs the UK economy an estimated £212 billion annually. Work and Pensions Secretary Pat McFadden said: "We inherited a welfare system which has locked too many disabled people and those with health conditions out of work. We're determined to ensure no talent is left behind."
Technology Integration
The DWP also intends to increase its use of artificial intelligence and machine learning to improve support, including digital tools that could help match people to suitable vacancies. The Innovation Fund is part of wider welfare changes, including Universal Credit reforms, a Right to Try Work Guarantee, more face-to-face health benefit assessments, and measures to reduce fraud and error.
