The Department for Work and Pensions (DWP) is inviting businesses, charities and technology firms to bid
A £60 million drive to help disabled people and those with long-term health conditions has been unveiled by ministers in the latest shake-up of Britain’s welfare system.
The Department for Work and Pensions (DWP) is inviting businesses, charities and technology firms to bid for a share of the cash to test new ways of helping people find and stay in jobs. The move has won the backing of Paralympic legend Baroness Tanni Grey-Thompson, who will sit on an expert panel deciding which projects receive funding.
The announcement comes as ministers continue their overhaul of the benefits system, arguing that too many people have been left trapped on welfare instead of being supported into employment. The DWP said 2.8 million people are currently out of work because of ill health, while economic inactivity linked to health conditions is estimated to cost the UK economy £212 billion a year.
The £60 million Innovation Fund forms part of the Government’s wider £3.5 billion Pathways to Work programme, which promises personalised employment support for disabled people and those with health conditions. Successful bidders will be expected to come up with bold new ideas to help people overcome barriers to work, with applications opening in September.
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 panel will include experts from disability charities, business groups, the technology sector and public services. The DWP said it also plans to make greater use of artificial intelligence and machine learning to improve employment support, including developing new digital tools designed to match people with jobs.
The latest announcement forms part of a wider package of welfare reforms that also includes changes to Universal Credit, a new Right to Try Work Guarantee, more face-to-face health benefit assessments and measures aimed at cutting benefit fraud and error.
Ministers say the reforms are designed to remove barriers preventing disabled people from working while ensuring the welfare system provides support for those who need it most. The Innovation Fund opens for applications in September 2026, with full details on how organisations can apply due to be published by the DWP nearer the launch.