New £60 million fund aims to help disabled people and those with health conditions into work

Government funding signals a renewed focus on removing barriers to employment, supporting people with long-term health conditions and helping more people remain in the workforce.

The Government has announced a £60 million funding opportunity aimed at developing new ways to help disabled people and people with health conditions move into work, remain employed and progress in their careers.

Led by the Department for Work and Pensions (DWP), the initiative invites organisations to develop and test innovative approaches to employment support. Ideas highlighted include AI-powered job matching and digital mental health therapies, reflecting a growing interest in how technology and more tailored interventions could help people overcome barriers to employment.

The fund forms part of the Government's wider £3.5 billion employment support programme, underlining the importance being placed on improving access to work for people who may otherwise struggle to enter or remain in the labour market.

A stronger role for employers

Although the funding is aimed at organisations developing employment support, its wider ambitions are relevant to employers across the UK. Helping people with health conditions access and sustain employment requires more than supporting individuals to find jobs; it also means addressing workplace barriers that can contribute to ill health, absence or employees leaving work altogether.

For employers, this could mean reviewing recruitment processes, improving access to reasonable adjustments, training managers to recognise and respond to employees' needs, and creating more flexible working arrangements where appropriate. It also highlights the importance of working collaboratively with occupational health professionals, healthcare providers and specialist disability organisations to ensure employees receive appropriate support at the right time.

The Government's wider approach includes the Keep Britain Working programme, which explores how employers can create healthier, more inclusive workplaces and prevent people from falling out of employment because of health conditions.

What happens next?

The Pathways to Work Innovation Fund offers up to £60 million over two years to test new approaches and build evidence about what works in supporting disabled people and those with long-term health conditions into and through employment. Applications opened in September, with the closing date set for 26 October 2026.

The longer-term impact will depend on which projects receive funding, the effectiveness of the approaches tested and whether successful interventions can be adopted more widely.

For employers, the announcement is a timely reminder that disability inclusion and workplace health are not simply matters of employee welfare. They are also central to workforce participation, retention and productivity.

As the Government seeks to narrow the disability employment gap, organisations have an opportunity to examine whether their own practices are helping people with health conditions thrive at work or inadvertently creating barriers that prevent them from doing so.