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You are here: Home / cat / Local Areas Receive £80 Million Funding to Improve Mental Health Support and Employment Outcomes

Local Areas Receive £80 Million Funding to Improve Mental Health Support and Employment Outcomes

Dated: October 17, 2025

The Government has extended the Transformative Inactivity Trailblazer scheme, providing targeted support to areas with the highest levels of economic inactivity across England and Wales. The initiative aims to help local people who are currently out of work through confidence-building, social support groups, mental health services, and skills development, giving them the tools to enter or re-enter the labour market.

Unlike traditional employment support, the Trailblazer programme empowers local areas to design tailored solutions that tackle the root causes of inactivity, including poor mental health, low skills, and social isolation, rather than only addressing the symptoms. The support offered includes work readiness programs, employer engagement, mental health services, confidence-building social groups, and skills training, helping thousands move closer to employment opportunities.

The schemes combine employment assistance with health and skills support, breaking the cycle between poor mental health and unemployment. The programme focuses on people facing complex and deeply personal barriers, ensuring they receive holistic support that addresses both their well-being and employability.

Secretary of State for Work and Pensions Pat McFadden highlighted that the programme puts local leaders in control, ensuring that support reaches those previously underserved. By taking a holistic approach, the initiative has already delivered results through early intervention, flexible training, and direct collaboration with employers, creating supportive work environments that treat health and employment as interconnected issues.

Individual success stories, such as that of Aaron, a young autistic person, demonstrate the programme’s impact. Aaron overcame social isolation and anxiety through the Trailblazer’s support, gaining job-readiness skills and co-creating a safe, interest-based social group tailored to his needs.

The extended funding allows for innovative pilots, including community link worker projects that connect residents to local health and employment services, and a digital self-referral platform for easier access to support. The investment builds on previous funding for youth employment support, including the Youth Hubs and Youth Guarantee Trailblazer schemes, complementing national efforts to tackle economic inactivity.

With 9.1 million people currently economically inactive across the UK, the programme targets communities most affected by barriers to work. Early successes in areas such as Denbighshire and Blaenau Gwent have combined wellbeing and resilience support with essential skills training, including motivation, self-confidence, problem-solving, and teamwork.

The scheme aligns with the Government’s Plan for Change mission to unlock opportunities, boost economic growth, and ensure everyone can access meaningful work. It recognizes that behind every inactivity statistic is a person with potential who, with the right support, can build a better future.

Welsh Government officials and regional leaders have welcomed the scheme’s expansion, noting that it provides tailored, community-led support that combines health services, employment assistance, and skills training to overcome local barriers. Mayors in South and West Yorkshire highlighted the programme’s role in rebuilding confidence, creating opportunities, and contributing to stronger, more resilient local economies.

The second-year extension allocates an additional £10 million each to York and North Yorkshire, South Yorkshire, West Yorkshire, the North East, Greater Manchester, and Wales, with a further £20 million to the Greater London Authority for three London Trailblazers. This funding supports the Government’s 80% employment rate ambition by integrating local services, engaging hard-to-reach economically inactive groups, personalizing support, testing innovative approaches, collaborating with employers, and evaluating what works to move people toward employment.

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