The Department for Work and Pensions (DWP) has launched a new £60 million fund aimed at finding better ways to help disabled people and those with long-term health conditions move into work, find jobs and stay in employment.
Pathways to Work Innovation Fund
The Pathways to Work Innovation Fund is inviting businesses, charities and public sector organisations across the UK to come forward with innovative ideas to improve employment support. Applications will open in September, with successful organisations receiving funding to test new approaches that could help shape future employment support services.
The UK Government said the fund forms part of its wider £3.5 billion package of employment support for disabled people and those with health conditions.
Economic Impact and Statistics
According to the DWP, around 2.8 million people across the UK are currently out of work due to ill health. It also cited estimates from the Keep Britain Working review suggesting health-related economic inactivity costs the UK economy £212 billion each year.
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, and that people are given the support they need. Through our £3.5 billion Pathways to Work employment support offer, we've seen that personalised support can be life-changing. Now we're calling on businesses, disabled people and charities to work with us, and bring forward their ideas to transform employment support."
Expert Panel and Leadership
An independent expert panel will help design the fund and recommend which projects should receive financial backing. The panel includes Paralympian and House of Lords member Tanni, Baroness Grey-Thompson, alongside representatives from Channel 4, the Business Disability Forum, Mencap, Public Digital, The Valuable 500 Foundation and other organisations.
Baroness Grey-Thompson said: "I am delighted to be joining this expert panel at such an important moment. 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 world is changing rapidly, and the systems that support disabled people must keep pace with that change. This Fund is a real opportunity to back the bold, creative ideas that can make that happen."
Wider Welfare Reforms
The new Innovation Fund sits alongside a wider package of UK Government employment and welfare reforms, including: rebalancing Universal Credit to remove what ministers describe as incentives that discourage people from moving into work; introducing a Right to Try Work Guarantee, allowing people to try work without fearing they will automatically lose their benefits; investing £3.5 billion in tailored employment support for sick and disabled people; increasing the number of face-to-face assessments for health benefits; and tackling fraud and error across the benefits system, with the UK Government aiming to save £14.6 billion over this Parliament.
The UK Government is also awaiting the findings of two major reviews. Former health secretary Alan Milburn is expected to publish recommendations later this year on tackling the barriers young people face in finding work, while the Timms review is examining how Personal Independence Payment (PIP) can be made fit and fair for the future.
Role of Technology
The DWP said technology will also play a role in improving employment support, with artificial intelligence and machine learning already being used to modernise services and develop new tools to help people find work.
Antony Walker, deputy chief executive of TechUK, welcomed the announcement. He said: "Thousands of disabled people and those with health conditions are locked out of the workforce, not for lack of talent, but because of barriers that persist across many careers. Our members are already developing and deploying innovative technologies that are breaking down those barriers, helping people to find work, stay in work and thrive in their careers. This investment has the potential to build on that success, accelerating the adoption of proven solutions and supporting even more disabled people to access rewarding employment while helping employers tap into a wider pool of talent."
Application Details
The Pathways to Work Innovation Fund will open for applications in September. It is open to public, private and voluntary sector organisations across the UK, with full details on how to apply due to be published by the DWP in the coming weeks.



