Organisations across the United Kingdom can apply for a share of a new £60 million government fund designed to improve employment support for disabled people and people with long-term health conditions. The Department for Work and Pensions (DWP) launched the application process for the Pathways to Work Innovation Fund in September 2026, inviting businesses, charities, public bodies, researchers and partnerships to submit innovative proposals.

The fund aims to test new approaches that help people move closer to employment, find jobs, remain in work and progress in their careers. Projects may include digital employment services, artificial intelligence tools, mental health support, accessible workplace technology and new partnerships connecting employment, health and skills services.

Applications are scheduled to close on 26 October 2026. Organisations interested in applying should review the official applicant bid pack, confirm that their project meets the innovation requirements and prepare a realistic budget and delivery plan before submitting their application.

Official information: Pathways to Work Innovation Fund applicant bid pack.

1. What is the UK £60 million Employment Support Fund?

The Pathways to Work Innovation Fund is a government grant programme that will invest up to £60 million over two years in new ideas for improving employment outcomes for disabled people and people with long-term health conditions.

The programme forms part of the wider Pathways to Work initiative, which aims to connect employment, health and skills support more effectively. The fund is intended to test approaches that can generate useful evidence about what works, identify barriers to employment and improve the support available to people who want to work.

Unlike a standard business grant intended for general operating expenses, this fund focuses on innovative projects. Applicants must explain the employment challenge they want to address, how their approach differs from existing provision and what the project will teach decision-makers and service providers.

The fund is open to organisations across the UK, including established organisations and new entrants. Applicants do not need a long history of applying for government grants, but they must demonstrate that their proposal is practical, accessible, measurable and capable of delivering useful learning.

Official source: Read the applicant bid pack.

2. Who can apply for the £60 million fund?

The fund welcomes applications from different sectors and organisations with relevant ideas, delivery capabilities or specialist knowledge. The applicant must be able to manage public funding responsibly and deliver the proposed project within the required period.

Organisations can apply individually or as part of a partnership. For a partnership application, one organisation must act as the lead applicant and take responsibility for submitting the application and managing any funding awarded.

Individuals, including sole innovators and subject matter experts, cannot act as the lead applicant in their personal capacity. They must participate through an eligible partnership as a delivery partner or subcontractor.

The fund is UK-wide. Applicants should nevertheless check the official bid pack for the full requirements, governance arrangements and responsibilities that apply to their organisation and any proposed partners.

3. What types of projects can receive funding?

The fund supports new or significantly different approaches that improve employment outcomes for disabled people and people with long-term health conditions. A proposal may focus on one outcome or combine several outcomes.

Technology and artificial intelligence

Technology projects may include AI-powered job-matching tools, accessible recruitment platforms, digital services that connect people with appropriate opportunities or new technology that helps people overcome workplace barriers. The proposal should explain how the technology will address a specific employment problem and how its impact will be evaluated.

Mental health and health-related employment support

Projects may test new digital therapies, tailored support models or services that help people manage health-related barriers to entering or remaining in work. The proposed approach should have a clear connection to employment outcomes and appropriate safeguards for participants.

Workplace accessibility and assistive technology

Proposals could explore accessible software, assistive devices, workplace adjustments or new methods of helping employers make recruitment and retention more inclusive. The applicant should identify the people who will benefit and explain how the solution will be tested in practice.

New services and delivery partnerships

The fund may support new service models that bring together employment advisers, health professionals, skills providers, employers and community organisations. A partnership proposal should clearly define each organisation role and explain how the combined approach could improve outcomes.

Research, pilot projects and evaluation

Funding can support user research, co-design, pilot programmes, monitoring and evaluation. Projects should generate evidence that can inform future services and show whether the approach could be adopted or expanded elsewhere.

Official guidance: Innovation principles and eligible project activities.

4. What outcomes must a funded project support?

The fund has two central objectives: improving employment outcomes for disabled people and people with long-term health conditions, and building evidence about which approaches work and for whom.

Projects should support at least one of the following outcomes:

• Move towards work: Help people build confidence, skills or readiness for employment.
• Enter work: Improve access to suitable job opportunities and support people into employment.
• Stay in work: Help people maintain employment when they face health-related or disability-related barriers.
• Progress in work: Support career development, improved skills, progression or better opportunities in employment.

Applicants should define clear and realistic outcomes. They should explain how progress will be measured, what evidence will be collected and how the findings could improve future employment support.

A strong proposal connects the identified problem, the new approach, the target group, the planned activities and the expected results. It should also explain how the voices and experiences of disabled people and people with long-term health conditions have influenced the project design.

5. How much funding can an organisation request?

The official applicant bid pack does not set a minimum or maximum grant amount for an individual application. Applicants should request the amount needed to deliver their proposal successfully and justify the budget against the planned activities, milestones and expected outcomes.

The £60 million figure represents the overall fund available across the programme. It does not mean every applicant can receive £60 million or that every application will be funded.

A larger funding request does not make an application more likely to succeed. Equally, requesting a smaller amount does not automatically improve the chances of an award. The request should reflect the actual project requirements and represent good value for money.

6. Which project costs may be eligible?

Funding can be used for activities required to develop, test, deliver, monitor and evaluate the proposed innovation. The applicant must explain why each cost is necessary and how it supports the project.

• Developing and deploying new technology, equipment or AI solutions.
• Designing and testing new interventions.
• Developing and piloting new products, services or tools.
• User research, consultation and co-design activities.
• Direct project delivery costs.
• Staff, volunteer and participant costs directly related to the project.
• Monitoring, evaluation and learning activities.
• Specialist support or equipment required for delivery.
• Partnership and collaboration activities.

All costs must be incurred during the funded period, directly related to the approved project, clearly justified and represent good value for money. Applicants should not assume that general overheads or existing business expenses will automatically be accepted.

The bid pack also requires applicants to provide a budget breakdown, estimated expenditure over the project period and proposed milestones linked to payment requests.

7. How to apply for the Pathways to Work Innovation Fund

Applications are submitted online through the fund application portal. The application process includes preparation, submission, shortlisting, refinement, award decisions and post-award activity.

1. Read the applicant bid pack. Review the eligibility conditions, innovation requirements, funding rules and application timetable.
2. Choose the project and target group. Identify the employment barrier the project will address and explain who will benefit.
3. Decide whether to apply alone or in partnership. If applying jointly, nominate one eligible lead organisation to submit the application and manage the funding.
4. Develop the innovation case. Explain what is new or significantly different from existing services and why the proposed approach could improve employment outcomes.
5. Prepare the delivery plan. Set out activities, responsibilities, milestones, project timing and expected results.
6. Prepare the budget. Explain the requested amount, costs, expenditure schedule and how the funding represents value for money.
7. Complete the required templates. Prepare the Budget Template and Delivery Plan and Milestones Template.
8. Explain accessibility and lived experience. Show how the needs and experiences of disabled people and people with long-term health conditions have informed the project.
9. Submit before the deadline. Complete the application and upload required supporting documents before 26 October 2026.
10. Respond to follow-up requests. Shortlisted applicants may be asked for clarification and invited to refine their proposals before final assessment.

The government states that supporting evidence is optional at the initial application stage. Applicants may nevertheless strengthen their case with relevant user research, needs assessments, evaluation reports, pilot findings, research evidence or partnership letters.

Apply through the official Pathways to Work Innovation Fund page, which provides the applicant guidance and access information for the application process.

8. Important application dates for 2026 and 2027

Shortlisted applicants are expected to receive feedback and an opportunity to strengthen their proposals. Refinement sessions are optional, and shortlisted applicants can submit a refined application whether or not they attend a session.

These dates come from the official applicant bid pack. Applicants should check the live government guidance for any changes before relying on the timetable.

9. How are applications assessed?

The DWP will consider the quality of the proposed innovation, the likely improvement in employment outcomes, the value of the learning generated and the potential for the approach to be adopted or expanded more widely.

The published assessment considerations include:

• How innovative the proposal is.
• How likely the project is to improve outcomes.
• The value of the evidence and learning that will be generated.
• The potential for the approach to be scaled, replicated or adopted.
• The funding required and the quality of the budget justification.
• Whether the proposal represents good value for money.

Strong applications should explain the problem clearly, demonstrate an understanding of the people who will benefit, set measurable outcomes and provide a practical delivery plan. They should also show how accessibility, inclusion and user needs have shaped the proposed intervention.

Applications may be weaker if they simply repeat existing services, provide limited evidence of the problem, lack measurable outcomes, include unrealistic delivery plans or fail to explain how the funding will be used.

The fund is intended to support experimentation and learning. Applicants should therefore explain not only what they plan to deliver but also how the results will inform future employment support.

10. How and when will grant payments be made?

Successful applicants will normally receive grant payments in arrears through the claims process. This means the organisation completes an agreed project milestone, supplies the required evidence and then submits a claim for the relevant payment.

The bid pack allows a maximum of one payable milestone per month. The number of payable milestones cannot exceed the length of the project delivery period. Applicants should therefore design milestones that are practical, measurable and straightforward to evidence.

Some organisations may need money at the beginning of a project to cover necessary mobilisation costs. Applicants can request a mobilisation payment of up to 30% of the total funding request. However, this payment is not guaranteed and is considered only in exceptional circumstances where a clear need is demonstrated.

The DWP may consider the organisation financial position, cash flow, the necessity of upfront expenditure, the proposed delivery plan and value for money when deciding whether to approve a mobilisation payment.

Organisations should plan their cash flow carefully and should not assume that the full grant will be paid upfront.

11. What should applicants prepare before submitting?

A complete application requires information about the organisation, the proposed innovation, the expected outcomes, the delivery plan and the budget.

Supporting evidence is optional, but relevant research, pilot findings, needs assessments or partnership letters may help explain the rationale for the proposal. Applicants should focus on the quality and clarity of the case rather than adding documents that do not support the project.

12. How can applicants get help?

The DWP provides support to help organisations understand the fund and prepare applications. Weekly online drop-in sessions are scheduled during the application window, with dates and joining details shared through fund communications.

The application process is designed to be accessible. Alternative formats include PDF, large print, Easy Read, British Sign Language, audio, Braille and Welsh-language materials. Reasonable adjustments and additional communication support may also be available.

For questions that are not answered in the bid pack or frequently asked questions, applicants can contact the fund support team at:

Email: dwp.pathwaystoworkinnovationfund@dwp.gov.uk

Applicants should seek help as early as possible, especially if they need an alternative application format, accessibility adjustments or assistance identifying potential partners.

13. Frequently asked questions

Conclusion

The Pathways to Work Innovation Fund offers up to £60 million over two years to help organisations develop and test new ways of supporting disabled people and people with long-term health conditions into work and through their careers. Eligible applicants include charities, businesses, social enterprises, researchers, public sector organisations and partnerships across the UK.

Applications must demonstrate meaningful innovation, clear employment outcomes, accessibility, a practical delivery plan and a justified budget. Projects must be delivered within 12 months of signing the Grant Funding Agreement, and funding is available up to the end of March 2028.

The application deadline is 26 October 2026. Organisations considering a bid should review the official applicant bid pack, prepare the required templates and submit their applications before the deadline. The fund is competitive, and meeting the basic eligibility requirements does not guarantee an award.