£60 Million Fund Launched to Help More Disabled People Into Work

Tuesday, August 4, 2026

The Government has announced a £60 million Pathways to Work Innovation Fund, designed to support disabled people and individuals with long-term health conditions to find and remain in employment.

The new fund will back innovative projects that help remove barriers to work, improve access to employment support and develop practical solutions that enable more people to build sustainable careers. Charities, employers, local authorities, technology organisations, universities and voluntary sector partners will all be able to apply for funding when applications open later this year.

The announcement forms part of the Government's wider Keep Britain Working strategy, which aims to reduce economic inactivity by helping more people with disabilities and health conditions participate in the labour market.

According to the Department for Work and Pensions (DWP), nearly one in four working-age adults in the UK lives with a disability or long-term health condition. While many want to work, too often they face unnecessary barriers during recruitment, limited access to workplace adjustments or a lack of appropriate employment support.

The Innovation Fund is intended to encourage organisations to develop new approaches that make recruitment more inclusive, improve retention and provide better long-term support for disabled employees.

Projects supported by the fund could include the use of assistive technology, specialist employment coaching, improved workplace adjustments, digital tools, employer partnerships and community-based programmes designed to help people move into work.

The Government is encouraging organisations from different sectors to work together, recognising that no single organisation can solve the challenge alone. Employers, charities, NHS organisations, universities, local government and technology providers are expected to play an important role in testing and delivering new ideas.

Alongside the funding announcement, ministers highlighted the importance of creating workplaces where disabled people can thrive. This includes improving recruitment practices, offering flexible working where appropriate, investing in accessible technology and ensuring managers have the confidence and training to support colleagues with different needs.

The initiative has been welcomed by disability organisations, many of which have long argued that disabled people possess valuable skills and experience but are too often excluded from employment because recruitment processes are not designed with accessibility in mind.

Research consistently shows that organisations benefiting from inclusive recruitment and diverse workforces report improvements in innovation, employee engagement and organisational performance.

For employers, the Innovation Fund presents an opportunity to work alongside government and specialist organisations to develop practical solutions that improve both recruitment and retention. It also reflects a growing recognition that supporting disabled people into employment is not simply a social responsibility but an important part of addressing the UK's continuing labour and skills shortages.

The Government has said successful projects should demonstrate measurable outcomes, including increased employment, improved job retention and better workplace experiences for disabled people.

Applications for the first round of funding are expected to open in September, with successful projects beginning later in the year.

As employers continue to compete for skilled workers, initiatives that remove barriers to employment and widen access to talent are likely to become an increasingly important part of the UK's workforce strategy.

Sources

  • Department for Work and Pensions
  • UK Government
  • Keep Britain Working Programme
  • Disability Confident Programme