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Pathways to Work Innovation Fund now open for applications

30/09/2026
Employability | Funding
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Organisations across Scotland and the UK are now invited to apply to the Pathways to Work Innovation Fund, a £60 million programme designed to test and develop innovative approaches that help disabled people and people with long-term health conditions move towards, enter, stay in and progress in work.

Delivered by the Department for Work and Pensions (DWP), the fund is seeking fresh ideas that can improve employment outcomes while generating evidence about what works in tackling barriers to work.

Application pack now available

The full application pack has now been published, providing detailed guidance on eligibility, assessment criteria and the application process.

The fund is open to a wide range of organisations, including:

  • Charities and voluntary organisations
  • Social enterprises and Community Interest Companies (CICs)
  • Private sector organisations and businesses
  • Academic and research organisations
  • Public sector bodies, including local authorities
  • Partnerships and consortia

DWP is encouraging applications from both established organisations and new entrants, with a focus on strong ideas that can improve employment support and create opportunities for disabled people and those living with long-term health conditions.

What kind of projects are being sought?

The Innovation Fund will invest up to £60 million over two years to support projects that help people:

  • Move towards work
  • Enter employment
  • Stay in work
  • Progress in their careers

Innovation may include new uses of technology or AI, new services or delivery models, new partnership approaches, or novel ways of supporting employers to recruit and retain disabled people and people with health conditions.

Examples could include developing new digital tools, piloting innovative employment support services, creating cross-sector partnerships, applying successful approaches in new settings, or introducing new ways of helping employers support disabled workers and those with long-term health conditions.

Importantly, DWP is looking for proposals that offer something genuinely new or significantly different, rather than simply expanding existing services. Projects should also demonstrate how they will generate learning and evidence that could inform future employment support programmes.

Flexible funding opportunities

There is no minimum or maximum funding amount, with organisations encouraged to apply only for the funding needed to deliver their proposal successfully.

Projects must be delivered within 12 months of signing a grant agreement, with funding available through to March 2028.

Applications will be assessed on factors including:

  • The level of innovation within the proposal
  • Potential to improve employment outcomes
  • The value of the learning generated
  • Scalability and future potential
  • Value for money

DWP has emphasised that applicants do not need extensive grant-funding experience. The focus is on the strength of the idea, the challenge being addressed, the outcomes that could be achieved and the learning that could be generated.

A distinctive feature of the programme is that shortlisted applicants will be invited to refine and strengthen their proposals before final funding decisions are made, helping organisations develop the strongest possible projects.

Learn more at upcoming DWP events

To help organisations understand the opportunity and application process, DWP is delivering a number of information sessions.

Edinburgh in-person event

A dedicated Innovation Fund event will take place in Edinburgh on Friday 2nd October 2026 from 10am to 2pm.

The session will provide an opportunity to hear directly from DWP officials, learn more about the fund and ask questions about developing an application.

Book your place

Online Scotland webinar

For those unable to attend in person, DWP Scotland will host an online webinar on Tuesday 6th October 2026 from 2pm to 3pm.

The webinar will cover a range of funding and policy priorities relevant to Scotland, including:

  • Youth Hubs
  • Youth and Jobs Guarantees
  • The new Jobs and Careers Service
  • Flexible Support Funding
  • Pathways to Work Innovation Fund

Book your place

Key dates

  • Applications opened: 28th September 2026
  • Partnership list published: 5th October 2026
  • Application deadline: Monday 26th October 2026
  • Shortlisting decisions communicated: 9th November 2026
  • Refinement sessions: 16th – 27th November 2026
  • Refined application deadline: 4th December 2026
  • Funding decisions announced: From January 2027
  • Project mobilisation begins: From February 2027

Opportunity for partnership working

The fund is expected to be particularly relevant to third sector organisations working in employability, health, wellbeing and inclusion. DWP has highlighted the importance of collaboration and is welcoming applications from partnerships and consortia that can combine expertise and reach across different sectors.

Organisations interested in developing new approaches to supporting disabled people and people with long-term health conditions are encouraged to review the application guidance and attend one of the forthcoming information sessions.

If there is interest in exploring a partnership arrangement supported by BCA, please contact [email protected].

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