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DWP Launches £60 Million Fund to Aid Disabled People into Work

The Department for Work and Pensions (DWP) has launched a new £60 million Pathways to Work Innovation Fund, with applications opening in September.

  • The DWP's new £60 million Pathways to Work Innovation Fund will open for applications in September.
  • The fund is part of the government’s wider £3.5 billion Pathways to Work employment support package.
  • Organisations will be invited to bid for funding to test new approaches to help disabled people and those with health conditions find and retain work.

The Department for Work and Pensions (DWP) has launched a new £60 million Pathways to Work Innovation Fund. Applications for the fund are set to open in September 2026.

This initiative is part of the government’s broader £3.5 billion Pathways to Work employment support package. The fund aims to invite public, private, and voluntary sector organisations to bid for funding. The objective is to test new methods that can assist disabled people and individuals with health conditions in securing and maintaining employment.

The fund was launched on 14 July 2026 at a techUK innovation showcase, suggesting an interest in tech companies as potential bidders. Over one in five working-age people are currently out of work and not seeking employment, with disabled people facing twice the rate of exclusion from work compared to non-disabled individuals.

Separately, on 28 July 2026, the new Prime Minister announced a proposed shake-up of the education system. This plan introduces new technical education pathways for students from age 14, combining academic subjects with technical education, work experience, and direct employer contact tailored to local growth sectors such as AI, digital, and technology.

Why this matters: The fund aims to address the challenge of over 1 in 5 working-age people being out of work and not looking for it, particularly the higher rate of unemployment among disabled people.

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