£10 Million fund to help more people in Wales back into work revealed
£10 Million fund to help more people in Wales back into work revealed
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Thousands of people across Wales who are out of work due to mental health challenges, low confidence, or social isolation are set to benefit from a new £10 million UK Government funding package aimed at tackling economic inactivity.
The funding will expand the inactivity trailblazer scheme, which gives local leaders the freedom to design targeted support to help people overcome barriers to employment. The scheme focuses on areas with the highest levels of economic inactivity, including several communities in Wales.
Unlike traditional employment programmes, the trailblazer model enables regions to develop tailored, community-led approaches that address the root causes of long-term unemployment, from poor mental health and low skills to social isolation.
Support will include peer-to-peer groups, confidence-building activities, and mental health support, alongside skills training and employer engagement designed to make recruitment more inclusive and sustainable.
Announcing the investment, Secretary of State for Work and Pensions Pat McFadden said: “For too long too many people in Wales have been locked out of the job market, which fails them and fails our economy.
“That is why we are doing things differently, putting local leaders in the driving seat so the right support goes to their community.
“By further investing in our trailblazers we’re helping people who were previously underserved or overlooked to build the confidence and skills they need to thrive.”
The trailblazer projects have already shown early success across Wales, with local programmes offering early intervention, flexible training, and wellbeing support to help participants rebuild confidence and reconnect with employment opportunities.
One example is Aaron, a young autistic man who faced severe social isolation and anxiety following experiences of bullying. With help from the trailblazer scheme, Aaron has developed CV-writing and job-readiness skills, engaged with potential employers, and co-created a social group tailored to his interests — something that did not previously exist in his local area.
Following these results, the UK Government has confirmed the programme’s expansion, which will include new initiatives such as community link worker projects to connect residents with local services, and a digital self-referral platform to guide people to the right health and employment support.
The investment complements recent funding commitments for young people, including £25 million for Youth Hubs and a £45 million extension of the Youth Guarantee trailblazer scheme.
Secretary of State for Wales Jo Stevens said the partnership approach was key to unlocking opportunity.
She said: “The UK Government is working with the Welsh Government and others to help people into employment. We know that work benefits people, giving them financial independence and improving their wellbeing.
“It is fantastic news that our Trailblazer scheme is being extended and backed with significant funding so it unlocks many more opportunities for people across Wales, setting them up for success.”
Minister for Culture, Skills and Social Partnerships for Wales Jack Sargeant said the investment will help build on the innovative local work already underway.
He said: “This vital funding boost will make a real difference to communities in Wales, where we’re seeing innovative approaches tailored to local needs already making an impact.
“Welsh trailblazers are proving that when we combine employment support with health services and skills training, we can help people overcome the complex barriers they face. This investment reinforces our commitment to ensuring people in Wales receive the right support at the right time tailored to their circumstances.”
The expansion comes as the latest ONS figures show 9.1 million people across the UK remain economically inactive. To mark the announcement, the Work and Pensions Secretary will visit Neath Port Talbot to officially launch the extended trailblazer programme and meet participants who are already benefiting from its community-led approach.
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