Mental health support and peer support networks to get people back into work as local areas get £80 million funding boost
Across the country, thousands more people will be helped back towards employment through support ranging from peer-to-peer support groups to mental health support thanks to an £80 million funding package announced today (Thursday).
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Transformative inactivity trailblazer scheme extended as Government targets economic inactivity hotspots through joined up localised support.
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Confidence building, social support groups and mental health support are just some of the ways local areas will be able to help local people currently out of work.
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Major funding boost forms part of wider government effort to unlock opportunity, improve living standards and drive growth as part of the Plan for Change.
The extra money for nine inactivity trailblazers across England and Wales will be targeted at areas of the country with the highest levels of economic inactivity, enabling local leaders to give those furthest from employment the tools to get into work.
Unlike traditional employment support, inactivity trailblazers empower local areas to design tailored solutions that tackle the root causes of economic inactivity - such as poor mental health, low skills, and barriers like social isolation - rather than just treating the symptoms.
New support that areas can offer will include work readiness skills, employer engagement to change hiring practices and support Local Growth Plans, mental health support, confidence-building social groups and skills training to move thousands more people closer to the labour market.
These groundbreaking schemes are helping to break the vicious cycle between poor mental health and unemployment by trialling initiatives that combine job support with health and skills support.
Those who benefit from the trailblazer support face complex, often deeply personal barriers to work, and the scheme is part of the Government’s wider plan to deliver national renewal focused on opportunity and respect, ensuring everyone is seen and valued.
Secretary of State for Work and Pensions, Pat McFadden said:
For too long too many people 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.
By taking a holistic approach, the programme is already delivering results through early intervention, flexible training and working directly with employers to create supportive environments, rather than treating health and employment as separate issues.
Aaron is a young autistic individual who experienced crippling social isolation and anxiety due to past bullying. With support from the trailblazer, Aaron has been able to build confidence and develop job-readiness skills including CV preparation and employer engagement for employment opportunities. The trailblazer has also allowed him to co-create a safe, interest-based social group since existing local options didn’t meet his specific needs.
Following early successes, the government has chosen to extend this support, which has seen the introduction of innovative pilots such as community link worker projects, which connect local residents to support services, as well as developing a new digital self-referral platform to signpost people to access local health and employment support services.
The funding builds on recently announced investment in youth employment support, including a £25 million boost for Youth Hubs and a £45 million extension to the Youth Guarantee trailblazer scheme.
The funding comes after this week’s ONS figures showed 9.1 million people remain economically inactive across the UK. To mark the announcement, the Work and Pensions Secretary will visit Wales to launch the expanded Trailblazer programme in Neath Port Talbot, where he will see firsthand how targeted, community-led support is breaking down barriers that have trapped some people for years.
This builds on the early successes of the Trailblazers in Denbighshire and Blaenau Gwent which have seen the creation of wellbeing and resilience support alongside the provision of essential skills including self-confidence building, motivation, problem solving and teamwork.
This investment is central to the Government’s Plan for Change mission to break down barriers to opportunity and kickstart economic growth by getting Britain working again.
This approach recognises that behind every unemployment or inactive statistic is a real person with real potential - and that with the right support, everyone deserves the chance to build a better future through meaningful work.
Secretary of State for Wales Jo Stevens 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:
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.
South Yorkshire’s Mayor, Oliver Coppard, said:
South Yorkshire has a proud industrial heritage that shaped our communities and powered progress far beyond our borders. But the legacy of industrial decline left behind deep-rooted challenges. For too long, poor health, low skills, and limited opportunity have held too many people back. That’s not good enough, and we’re changing it.
I’m proud that we’ve secured another year of funding for the Economic Trailblazer. It’s a vital part of our nationally recognised Pathways to Work programme, which is helping thousands of people across South Yorkshire into good, secure jobs.
We’re building a South Yorkshire where everyone can stay near and go far, putting people and employers at the heart of everything we do - creating opportunity, transforming lives, and strengthening communities. Together, we’re making change happen.
Tracy Brabin, Mayor of West Yorkshire, said:
This support really matters for people here in West Yorkshire, helping us to break down barriers to work and put more money in people’s pockets.
Through our Healthy Working Life programme, we’re helping those who’ve been out of work to rebuild their confidence, get the right support, and take that next step towards a good job.
Everyone deserves a fair chance to flourish, and this vital investment is giving people the skills and the support that they need to contribute to a stronger, brighter economy.
Additional Information
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The funding to extend the inactivity trailblazers for a second year will provide, a further £10m each to:
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York and North Yorkshire
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South Yorkshire
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West Yorkshire
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The North East
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Greater Manchester
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Wales
as well as:
A further £20m to the Greater London Authority to deliver three Trailblazers in London.
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This additional funding will support the Government’s 80% employment rate ambition, through:
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Integration of local services to bring together fragmented work, health and skills support environment
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Identification and engagement of hard to reach economically inactive groups
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Personalisation of support
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Testing innovative new ways to support people
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Increased collaboration and engagement with employers
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Comprehensive evaluation to learn what works locally to support people to move people towards or into work
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Trailblazers were launched in April 2025. More details can be found here: South Yorkshire kicks off £125 million plans to get Britain back to health and work - GOV.UK