The UK Government has unveiled a £60 million Pathways to Work Innovation Fund, inviting businesses, charities and innovators to develop new solutions to help disabled people and those with health conditions find and stay in work.
The funding, announced by the Department for Work and Pensions (DWP) yesterday, forms part of the Government’s wider £3.5 billion Pathways to Work employment support package. The fund is designed to break down long-standing barriers preventing disabled people from accessing sustainable employment.
Organisations across the UK will be able to bid for funding from September. It will allow successful applicants to test innovative approaches that could reshape employment support nationwide.
GROWING EMPLOYMENT CHALLENGE
The announcement comes against the backdrop of significant economic and social challenges. According to Government figures:
- 2.8 million people are currently out of work due to ill health.
- The Keep Britain Working Review estimates that economic inactivity linked to health conditions costs the UK economy £212 billion every year.
The Innovation Fund is intended to bring together expertise from the private, public and voluntary sectors alongside disabled people themselves to develop practical, scalable solutions that improve employment outcomes.
NO TALENT LEFT BEHIND
Work and Pensions Secretary Pat McFadden said the Government is determined to create a welfare system that supports opportunity rather than limiting it. “We inherited a welfare system which has locked too many disabled people and those with health conditions out of work,” he said.
“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,” added McFadden. “Now we’re calling on business, disabled people and charities to work with us, and bring forward their ideas to transform employment support.”
The Government says successful projects should demonstrate fresh thinking capable of improving both access to employment and long-term workplace retention.
SYSTEMS TO SUPPORT DISABLED PEOPLE AT WORK
An independent expert panel will help design the Innovation Fund and assess funding applications. Among its members is Paralympian and crossbench peer Baroness Tanni Grey-Thompson, whose experience as both a disabled leader and advocate is expected to shape the programme.
“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,” stated Baroness Grey-Thompson. “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.”
TECH’S ROLE IN DISABILITY INCLUSION
To coincide with the announcement, Pat McFadden visited techUK, the UK’s leading technology trade association, to explore how emerging technologies can improve employment support. The DWP is already modernising services through AI-powered tools designed to help more people find work while delivering faster and more personalised support.
“The announcement that the Department for Work and Pensions is investing into an Innovation Fund is very welcome. 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,” stated Antony Walker, Deputy CEO of techUK. “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.”
CHAMPIONING DISABILITY INCLUSION AT WORK
The Business Disability Forum (BDF) also welcomed the launch. It described it as an important opportunity to generate fresh ideas capable of reducing the UK’s persistent disability employment gap. The organisation, which champions disability inclusion across business, said innovation must sit alongside wider reform of employment support systems.
“We are delighted to see the launch of the Pathways to Work Innovation Fund to stimulate new ideas and fresh thinking to support more disabled people in and into work,” shared Diane Lightfoot, CEO of Business Disability Forum. “It is clear that things need to change if we are to shift the disability employment gap in a meaningful way, and a fund of this nature is something we and others have been calling for, for several years.”
BETTER WORKPLACE EXPERIENCES FOR PEOPLE WITH DISABILITIES
Lightfoot believes far too many disabled people are either not entering or leaving the workforce because they cannot get the support they need. Fresh perspectives and approaches are needed, “so we encourage as many individuals, groups, and employers to consider applying to the Innovation Fund as possible – from organisations that want to pilot something new to those who think what has worked for them can be scaled up to help others too,” said Lightfoot.
“The fund will provide opportunities for employers and policy makers to learn from what works and we hope will lead to better workplace experiences for all disabled people. But innovation is just one element of what is needed for disabled people to find and thrive in work. We also need joined-up wider support systems. PIP and Access to Work are currently under review. Both play a key role in making work possible for many disabled people and they also need to be considered alongside today’s announcement.”
BDF has consistently argued that employer collaboration, accessible workplaces and inclusive leadership are essential if innovation is to translate into meaningful employment outcomes. Its latest global conference shared how it is bringing together global leaders to advance disability inclusion.
WIDER WELFARE REFORMS
The Innovation Fund forms part of a broader package of employment and welfare reforms currently being introduced by the Government. These include:
- £3.5 billion investment in tailored employment support for disabled people and those with health conditions.
- Rebalancing Universal Credit to remove incentives that discourage employment.
- Introducing a Right to Try Work Guarantee, allowing people to attempt work without fear of losing benefits.
- Increasing face-to-face health benefit assessments.
- Tackling fraud and error across the benefits system, with projected savings of £14.6 billion during this Parliament.
- Ongoing reviews of Personal Independence Payment (PIP) and wider disability support led by Sir Stephen Timms.
- Alan Milburn’s forthcoming recommendations on reducing barriers faced by young people entering work.
LEADERSHIP CRITICAL TO DISABILITY INCLUSION
While funding innovative projects is widely welcomed, disability inclusion experts have repeatedly stressed that lasting progress depends on leadership commitment, inclusive workplace cultures and practical accessibility. Not just new programmes. Lightfoot recently shared why disability inclusion must be driven from the top of organisations, highlighting how leadership accountability remains one of the strongest predictors of inclusive workplace success.
Recognition also continues to grow for employers demonstrating measurable progress through initiatives such as the Disability Smart Impact Awards, which celebrate organisations making a tangible difference for disabled employees: The business case itself remains compelling. As reported, employers that invest in disability inclusion benefit from broader talent pools, stronger innovation, improved retention and enhanced organisational performance:
With applications opening in September, the Government is positioning the £60 million Pathways to Work Innovation Fund as a catalyst for the next generation of employment support. If successful, the programme could help transform how disabled people access work. It will also encourage greater collaboration between employers, charities and technology innovators, according to the experts. The goal is to reduce the UK’s growing economic inactivity challenge, while ensuring that millions of people are given greater opportunities to build rewarding careers.
GUIDANCE FOR EMPLOYERS
With applications for the Pathways to Work Innovation Fund opening in September, employers have an opportunity not only to explore potential funding but also to review how inclusive their own recruitment and workplace practices are. Experts recommend organisations should:
- Review recruitment processes to ensure job adverts, application systems and interviews are accessible to disabled candidates.
- Invest in manager training so line managers understand reasonable adjustments and how to support colleagues with health conditions.
- Partner with disability organisations and charities to access specialist expertise and improve recruitment pipelines.
- Embrace workplace technology, including AI-powered accessibility tools, assistive technology and flexible working solutions that remove barriers to employment.
- Measure disability inclusion through workforce data, employee feedback and retention rates to understand where improvements are needed.
- Prepare for future funding opportunities, particularly if developing innovative employment support projects.
Diane Lightfoot’s comments underline that while innovation is welcome, employers also need to work alongside wider support systems such as Access to Work and PIP to ensure disabled employees receive consistent support throughout their careers.
Businesses can also learn from organisations already leading the way. Fair Play Talks has previously explored how leadership commitment remains one of the strongest drivers of successful disability inclusion, with senior leaders playing a crucial role in embedding accessibility into workplace culture rather than treating it as a standalone initiative.
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