The UK government has announced a significant £80 million funding package aimed at helping thousands of people who have become economically inactive due to poor mental health or social isolation to re-enter the workforce. The Department for Work and Pensions (DWP) revealed that this investment will underpin tailored support programmes across nine regions in England and Wales, with local councils and mayors given autonomy over how the funds are used. This approach marks a departure from traditional one-size-fits-all job schemes, focusing instead on bespoke initiatives such as peer support groups, confidence-building sessions, mental health treatments, and skills training.

Work and Pensions Secretary Pat McFadden highlighted the rationale behind this new strategy, emphasising that too many people have been excluded from the job market, to the detriment of both individuals and the wider economy. By empowering local leaders, the government intends to ensure that support is tailored to the specific needs of communities. The “inactivity trailblazer” programme, launched in April and now extended with the fresh funding, has already demonstrated early promise in areas like Denbighshire and Blaenau Gwent, where wellbeing sessions and teamwork training have helped participants build confidence and skills. For example, Aaron, a young autistic man, benefitted from job-readiness support and formed a social group that has positively impacted his community.

The funding distribution is targeted at regions with the highest levels of economic inactivity, reflecting the government's aim to tackle entrenched barriers linked to health and unemployment. The largest share—£20 million—will go to the Greater London Authority to run three pilot projects. Other key recipients, each receiving £10 million, include York and North Yorkshire, South Yorkshire, West Yorkshire, the North East, Greater Manchester, and Wales. Welsh officials, including Welsh Secretary Jo Stevens and Minister Jack Sargeant, have expressed optimism about the scheme’s ability to unlock opportunities and improve wellbeing through tailored local support.

The scheme is part of a wider government agenda labelled the Plan for Change, which seeks to combine health, employment, and skills support in a more integrated fashion than previous efforts. This shift is reflected in related initiatives such as the ‘Connect to Work' programme launched by the DWP, which received a £40 million boost to support disabled individuals and those with health conditions in finding work, initially focusing on West London before a planned expansion to 47 areas across England and Wales. The overall ambition is to support up to 100,000 people annually through personalised interventions, including one-to-one employment advice and skills development.

In addition, the government is increasing support for sick and disabled claimants by deploying 1,000 existing work coaches who will offer intensive, voluntary guidance to around 65,000 individuals. This complements a broader £338 million DWP funding initiative projected to assist about 300,000 people over five years, helping those with long-term sickness or disabilities overcome complex employment barriers. The government has also announced major welfare reforms backed by £1 billion in investment, including scrapping the Work Capability Assessment and introducing a 'right to try' work guarantee aimed at unlocking employment opportunities and boosting economic growth.

Local leaders have welcomed these developments. South Yorkshire Mayor Oliver Coppard noted the legacy of industrial decline and its impact on health, skills, and employment opportunities, praising the scheme for helping thousands into secure jobs. Similarly, West Yorkshire Mayor Tracy Brabin emphasised the importance of breaking down barriers to work and ensuring fair chances for people to flourish economically.

Together, these measures illustrate a comprehensive attempt by the UK government to address economic inactivity through a combination of health and skills support, decentralised decision-making, and enhanced welfare provision. The move reflects an acknowledgment that support needs to be tailored and holistic to be effective, particularly for those facing the twin challenges of poor health and social isolation.

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Source: Noah Wire Services