UK Launches £60 Million Innovation Fund for Disabled Workers

The Department for Work and Pensions launched a £60 million Innovation Fund to develop new methods for helping disabled people and those with long-term health conditions enter and remain in the workforce. This initiative is part of a broader £3.5 billion Pathways to Work program designed to provide tailored employment support. Beginning in September 2026, grants will be available to businesses, charities, and public sector organizations to test innovative ways to remove employment barriers.

An independent expert panel, featuring Baroness Tanni Grey-Thompson, will oversee funding decisions to ensure the most effective projects receive financial backing. The fund aligns with wider welfare reforms implemented by the UK government, including Universal Credit adjustments and the Right to Try Work Guarantee. These measures aim to mitigate the economic impact of health-related inactivity, which is estimated to cost the UK economy £212 billion annually.

Work and Pensions Secretary Pat McFadden stated that the government inherited a welfare system that locked too many disabled people out of work. He called on the private and third sectors to provide ideas to transform employment support, emphasizing a determination to ensure no talent is left behind.