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Employment Support Funding Arrangements between the Department of Work and Pensions and the Welsh Government

The UK and Welsh Governments have agreed how they will deliver the UK Government’s manifesto commitment to devolve employment support funding to the Welsh Government over the course of the current UK Parliament.

That devolution has already begun with the agreement to transfer up to £20 million for the Economic Inactivity Trailblazer Pilots across two years, 2025-26 to 2026-2027.

Further funding from agreed new employment programmes being delivered by DWP will be transferred to Welsh Government to design and deliver employment support schemes closer to the communities they affect using the Welsh Government’s Employability Support Programme. UK Government employment support already available or with a funding agreement in place will continue and will not be in scope.

This funding will strengthen the Welsh Government’s ability to assist people in Wales to move closer to employment and enter the workforce, helping to improve living standards across Wales and support economic growth.

The Memorandum of Understanding is attached.