The Department for Work and Pensions (DWP) has announced a new initiative aimed at supporting disabled people and those with health conditions into employment. The department is inviting businesses, charities, and innovators to bid for a share of £60 million to develop fresh and effective ways to help millions of people who are currently out of work due to disability or health issues.
This funding is part of the government’s broader £3.5 billion commitment to improving support for disabled individuals and people with health conditions, with the goal of reducing barriers to employment. The initiative, known as the Pathways to Work Innovation Fund, was first introduced in July as a call for ideas from the private, voluntary, and public sectors to help disabled people enter and remain in the workforce.
Applicants have until 26 October 2026 to submit their proposals. The DWP highlights the urgency of the issue, noting that 2.8 million people remain out of work due to sickness or disability.
READ MORE: Government Announces Energy Bill Discounts for 10,000 Manufacturers Starting April 2027
Work and Pensions Secretary Pat McFadden emphasised the importance of this initiative: “We want the best ideas from business, charities and disabled people themselves, to help us transform employment support and make sure no talent is left behind. These ideas will help us support disabled people in work, helping them to thrive and fulfil their full potential, tackle the disability employment gap and help businesses drive growth across every postcode.”
Sir Charlie Mayfield, Co-Chair of the Keep Britain Working programme, highlighted the economic impact of inactivity caused by health issues, stating it costs the economy £212 billion annually. He stressed the need for ambitious and creative solutions to enable disabled people and those with health conditions to find and retain employment. “If you’re a business, a charity, or an innovator, this is your chance to bid for funding and test genuinely new ways of transforming employment support,” he said.
Antony Walker, Deputy CEO of techUK, expressed strong support for the fund. “techUK was delighted to host the Secretary of State to launch the Pathways to Work Innovation Fund. Our members are already developing innovative technologies that are breaking down barriers, helping disabled people and those with health conditions find work, stay in work and thrive. This £60 million investment can build on that success by speeding up the adoption of proven solutions. We look forward to working with DWP to make sure the Fund reaches the innovators, particularly the UK’s dynamic SMEs, who can make the biggest difference.”
The Pathways to Work Innovation Fund represents a significant opportunity for organisations across sectors to contribute to a transformative effort aimed at inclusive employment and economic growth.