Helping people into work

£90 million investment to tackle economic inactivity

A series of measures to address long-term unemployment, boost economic growth and tackle child poverty have been detailed by Deputy First Minister Kate Forbes.

Funding of £90 million in the draft Scottish Budget for 2026-27 is expected to help up to 7,500 people furthest from the labour market into work, with thousands more expected to benefit from qualifications and training.

Initiatives will include:

  • A £40 million package to help parents most at risk of poverty into jobs and training courses
  • Investment of £5 million in specialist services to help disabled people access and sustain meaningful employment
  • £39 million for No One Left Behind to support people furthest from work towards employment

Ms Forbes also announced a major marketing campaign providing parents with advice to help them get back into work.

Visiting McTaggart Construction, a business which provides on-site training to help people into work as part of the Scottish Government’s No One Left Behind approach, Ms Forbes said: “Our employability services are helping people into work who may otherwise face barriers to employment due to factors such as illness, disability or simply taking time out to have a family.

“With the involvement of employers like McTaggart Construction, we are building people’s confidence and providing access to new skills.

“Tackling economic inactivity is a win-win situation – it boosts the economy and tackles child poverty by providing families with a secure income – and our £90 million Budget commitment will enable more people to access employment support.”

Liam Long, a new dad secured training and then a full-time job at McTaggart Construction with the support of No One Left Behind services after being out-of-work due to a period of illness, said: “Coming through the All in Glasgow programme and First Step Future Training gave me the opportunity to get my foot in the door.

“That placement opened the door to a permanent role with McTaggart Construction.

“I’ve just become a dad and the two weeks’ paternity pay meant everything to me. I’m proud to work for a company that genuinely invests in its people and supports them through moments in life.”

Employment support to improve lives

Further funding to provide a route out of poverty

Employability services to help those most at risk of long-term unemployment will receive up to £113 million of funding.

To deliver the ambitions set out in the National Strategy for Economic Transformation and the Child Poverty Delivery Plan, tailored services based on local needs will ensure the right help is given to ensure people are supported to move towards and into work.

The No One Left Behind approach – which includes the Young Person’s Guarantee – sees services funded through Local Employability Partnerships (LEPs) bringing together local government, Skills Development Scotland, Department for Work and Pensions, colleges, the third sector and other partners to provide support that meets both individual and labour market needs in each area. This is crucial to achieving shared aims around tackling poverty and inequalities.

The National Strategy for Economic Transformation aims to build a fairer and more equal society by ensuring economic transformation which tackles inequality, drives up working standards and improves pay. It also outlines how partnership working can support people into jobs by tackling labour market inequalities and unlocking Scotland’s economic potential.

Employment Minister Richard Lochhead said: “Redesigning services with the user in mind is part of the bold steps we’re taking to achieve the goals of the National Strategy for Economic Transformation.

“If delivering on our objectives involves change to get a better outcome for the people of Scotland, we won’t duck from that challenge.

“We have always been clear that No One Left Behind places people at the centre of employability services and support, to give them help tailored to their specific needs. I’m pleased that in 2022/23 we are able to invest up to £113 million to support those at risk of long-term unemployment.

“This investment will build on existing support to deliver more localised help around employability and skills to people most disadvantaged in the labour market. It will also align more closely with other local services in housing, justice, advice, and health.”

Read about the Tackling Child Poverty Delivery Plan here.