Applications open in September 2026
Ministers have set out a £60 million “Innovation Fund” aimed at helping disabled people and those living with long-term health conditions move into work and remain in jobs.
The DWP says that the fund sits within its broader £3.5 billion Pathways to Work programme, which ministers say will be able to provide tailored employment support for people whose health affects their ability to work. The department claims that too many have been “trapped” on benefits rather than supported into suitable jobs.
The Department for Work and Pensions (DWP) says it will invite organisations ranging from employers and charities to tech firms to apply for grants, as the Government presses ahead with a wider revamp of the welfare system. The cash will be used to trial new approaches designed to tackle barriers that stop people finding work or progressing once they have a role.
Paralympic champion Baroness Tanni Grey-Thompson has backed the plan and will sit on an expert panel that helps decide which bids receive funding, with applications due to open in September 2026.
Figures published by the department suggest around 2.8 million people are currently out of work due to ill health, while economic inactivity linked to health conditions is estimated to cost 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 business, disabled people and charities to work with us, and bring forward their ideas to transform employment support.”
Baroness Grey-Thompson said she was ‘delighted’ to join the panel overseeing the scheme. She said: “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.”
The Government says the panel will bring together voices from disability charities, business organisations, technology specialists and public services. Ministers want successful applicants to come forward with what the DWP describes as bold, fresh ideas that can be tested and scaled up if they work.
Alongside the funding, the department said it intends to increase its use of artificial intelligence and machine learning to improve support, including building digital tools that could help match people to suitable vacancies.
The Innovation Fund is being announced as part of a wider set of welfare changes, including reforms to Universal Credit, a Right to Try Work Guarantee, more face-to-face health benefit assessments, and measures aimed at reducing fraud and error. The DWP said full guidance on how to apply will be published closer to the September 2026 launch.
