Economically Inactive Trailblazer Project

The Economic Inactivity Trailblazer supports residents who are out of work and face significant barriers to employment. The £10m programme brings together health, employment and skills services to help people move closer to work, improve wellbeing and reduce the barriers that prevent them from accessing opportunities.

Following a successful first year, the Trailblazer continues into 2026/27 with an even stronger focus on collaboration, progression and simplifying access to support.[

Project details

Portfolio: Education, skills and inclusion

Funding amount: £10 million

Funder: Department for Work and Pension (DWP)

Project status: Mobilising

Delivery partner: Various – please see below

Key contact email: EI.Trailblazer@northeast-ca.gov.uk

Supported by

In 2024, the Government’s Get Britain Working White Paper set out a £240m plan to help more people into work. The aim is to increase the national employment rate to 80%, improve workplace health and join up public services for people who are out of work because of health conditions. The Economic Inactivity Trailblazer is a key part of this plan.

The Mayor secured the Trailblazer programme for the North East Combined Authority in December 2024. It launched in 2025 and will run through 2026/27. The programme brings together health, employment and skills services to support residents who are out of work due to ill health, helping them get the right help to move back towards employment.

By testing new ways of working, removing barriers to work and making better use of existing services, the programme aims to boost the local economy, improve living standards, reduce child poverty and create more opportunities for people across the region.


Programme priorities

The programme is centred around three priorities:  

Priority 1: Better pathways into employment​

We will create stronger and more joined-up routes into work by coordinating existing services and resources. This will help make employment support more effective and easier to access. 

Priority 2: New ways of working

We will invest in new types of employment support to help residents move into jobs, education or training. This includes testing new ideas and approaches that could be expanded in the future. Our focus includes supporting young people, neurodiverse residents, women and people receiving primary care. 

 

Priority 3: Systems reform – an integrated approach to health and employment

We want to break down barriers and redesign services so that health, employment and skills support work together seamlessly, creating a simpler, more effective system for local people. 


Evidence and reporting

We recognise that tackling economic inactivity effectively requires more than developing new employment support. We needed to better understand why people become or remain economically inactive, the barriers they experience in accessing and sustaining good work, and where changes to the wider system could make the greatest difference.

That's why we're investing in research alongside front-line delivery.

Our Year 1 research programme was designed to build a stronger North East evidence base around some of the most complex and persistent challenges associated with economic inactivity. It explores the experiences of residents and communities, the needs and experiences of employers, and how employment, skills, health, and wider support services interact to support people towards and into work.

Our approach

We've commissioned a diverse portfolio of research, working with organisations that bring specialist expertise, local knowledge, and direct connections to the people and systems we want to understand. It brings together insight from residents, employers, local authorities, health partners, voluntary and community organisations, and specialist organisations; enabling economic inactivity to be explored from different perspectives.

The programme examines a broad range of issues and experiences, including unpaid caring, ex-offenders and criminal justice pathways, supported housing, neurodiversity and disability, employer engagement and inclusive employment, labour market information, VCSE capacity, young people, and the accessibility of employment support.

This research was designed not simply to describe the challenges, but to help identify what could be done differently. Alongside the evidence and recommendations, a number of projects developed practical tools, resources and models that can support organisations to translate learning into changes in policy, commissioning, and delivery.

Research reports

Ex-offenders, health, skills, and employment

Focuses on addressing the systemic barriers faced by people leaving prison in accessing employment, with particular emphasis on the transition from custody to community. 

Employer engagement

Aims to develop and test a collaborative model of employer engagement that leads to more inclusive recruitment, progression, and retention practices across sectors, with a particular focus on those furthest from the labour market. 

Unpaid carers

Focuses on economically inactive unpaid carers across the North East Mayoral Strategic Authority area. Reviews carers’ needs, existing provision and best practice, alongside engagement with carers organisations, local authorities, health services, employers and voluntary and community sector partners. 

Regional Labour Market Intelligence (LMI)

Tests a new Areas of Research Interest (ARI) model to improve how local labour market data is produced, coordinated, and shared across the North East. 

VCSE sector system reform

Focuses on understanding and enhancing the VCSE sector’s contribution to tackling economic inactivity, particularly for residents facing complex barriers to employment, including health-related conditions. 

Supported accommodation and employment

Examines the financial, structural and personal barriers that limit access to employment, with particular emphasis on the impact of ineligible service charges within supported housing and how these interact with welfare systems. 

Making every contact count (disabled people)

Focuses on improving how employment is discussed, understood and promoted for disabled people and those with long-term health conditions, recognising that negative perceptions, stigma and system barriers can limit engagement with employment support. 

Making every contact count (young people)

Explores and addresses attitudinal and systematic barriers to employment for young people, aged 16-24. Delivers a test-and-learn project combining engagement, research, and co-design; develops media, evidence, and tools to guide future service and policy design; contributes to long-term system change.

Key findings and recommendations

Bringing together these reports enables us to identify common themes, shared challenges, and recommendations for change that consistently emerge across different areas. These are outlined below.

System Fragmentation & Lack of Coordination

Key findings 🔑

  • Services across health, employment and skills operate in silos
  • Multiple entry points create confusing, disjointed journeys for residents
  • Employers and providers face a crowded, complex system
  • Duplication and inconsistent pathways reduce effectiveness 

Recommendations 📌

  • Create a “no wrong door” system for access and navigation
  • Establish a single employer gateway (e.g. SHINE Gateway)
  • Align programmes, referrals and standards across the system
  • Strengthen the coordinating role of the Strategic Authority 

Structural Barriers & Financial Disincentives

Key findings 🔑

  • Economic inactivity is driven by system design, not lack of motivation
  • Strong financial risks (“benefit trap”) when moving into work
  • Barriers include: Housing costs; Welfare system complexity; Transport and low pay
  • Many people want to work but feel it is too risky or unrealistic

Recommendations 📌

  • Introduce financial transition support when entering work
  • Reform benefit systems to avoid cliff edges
  • Expand affordable housing and move-on options
  • Tackle structural barriers alongside employability support 

Need for Personalised, Holistic Support

Key findings 🔑

  • Individuals face multiple, overlapping barriers (health, caring, trauma)
  • Employment journeys are non-linear
  • Generic, one-size-fits-all support is ineffective
  • Sustaining work is as important as accessing it 

Recommendations 📌

  • Deliver end-to-end, wraparound support
  • Provide in-work support, not just pre-employment
  • Tailor pathways to individual circumstances (e.g. carers, young people)
  • Focus on long-term progression and retention 

Role of Trusted, Local & VCSE Organisations

Key findings 🔑

  • VCSE and community organisations are critical system partners
  • They provide trusted, relationship-based support
  • Current commissioning and funding models limit their impact
  • They often fill system gaps without recognition or resource 

Recommendations 📌 

  • Invest in VCSE capacity and infrastructure
  • Reform commissioning to be inclusive and long-term
  • Embed VCSE as core delivery partners, not add-ons
  • Strengthen place-based partnerships

Employer Engagement & Labour Market Alignment

Key findings 🔑 

  • Employers are willing to engage, but lack understanding and face system complexity
  • Recruitment systems unintentionally exclude target groups
  • Employers value attitude and reliability over qualifications
  • Capacity varies by business size and location 

Recommendations 📌 

  • Simplify engagement through a single employer interface
  • Develop work-ready talent pipelines aligned to employer needs
  • Introduce low-risk recruitment pathways (e.g. trials, placements)
  • Provide ongoing support to employers and employees

Perceptions, Confidence & Engagement Barriers

Key findings 🔑 

  • Many people do not identify with the term “economically inactive”
  • Confidence, stigma and past experiences limit engagement
  • Lack of awareness of rights and support (e.g. carers, disabled people)
  • Work is often seen as desirable but not realistic 

Recommendations 📌 

  • Improve language and messaging (clear, relatable, non-stigmatising)
  • Build confidence and awareness through tailored support
  • Promote positive narratives around “good work”
  • Provide independent, trusted advice 

Data, Evidence & Evaluation Gaps

Key findings 🔑 

  • Lack of consistent data on employment outcomes
  • “Soft outcomes” (confidence, wellbeing) are undervalued and under-recorded
  • Limited evidence on what works at scale
  • Short-term funding limits learning and evaluation 

Recommendations 📌

  • Standardise data collection and reporting frameworks
  • Include soft outcomes alongside hard outcomes
  • Strengthen long-term evaluation and evidence-building
  • Use shared frameworks (e.g. ARI model) to align research

System Reform Requires Long-Term Change

Key findings 🔑 

  • Current challenges are systemic, not programmatic
  • Short-term funding and pilots limit long-term impact
  • Integration between health, work and skills is not yet realised
  • Progress is being made but remains early stage 

Recommendations 📌 

  • Commit to long-term, stable funding
  • Embed system-wide integration (health + work + skills)
  • Scale what works rather than creating new programmes
  • Focus on sustainability and long-term outcomes

What's next? From insight to action

This Year 1 research is not intended to sit on a shelf. Its value lies in how the evidence is used.

The learning is already helping to inform Year 2 investment and commissioning, the development and testing of new approaches, and wider conversations about policy and system reform. It provides an opportunity to

  • build on what's working
  • challenge where existing approaches could work differently
  • ensure that future provision is increasingly shaped by evidence and the experiences of the people and employers who use it.

The legacy of Year 1 is therefore more than a collection of research reports. It provides a growing evidence base, a set of recommendations for change and practical resources that can help the North East move from research and insight to innovation and action.

What’s new in 2026/27

  • Stronger cross‑referrals between services
  • Greater focus on measuring progress for every resident
  • More support to help individuals become job‑ready or move into work
  • Expanded employer engagement to create more opportunities

Lead delivery organisations

The North East Mayoral Strategic Authority manages the Economic Inactivity Trailblazer and the lead delivery partners listed below have been appointed to deliver each priority for 2026/27.

Full contact details available below.

Priority 1

Delivery organisationProjectContact details
Gateshead Council  JulieKillick@gateshead.gov.uk 
MartinMcDonnell@gateshead.gov.uk 
Newcastle City Council  Robin.Beveridge@newcastle.gov.uk 
Chris.Ord@newcastle.gov.uk 
North Tyneside Council  Claire.Dunn@northtyneside.gov.uk 
Northumberland Council  John.Hildreth@businessnorthumberland.co.uk 
South Tyneside Council  Karen.McParlin@southtyneside.gov.uk 
Sara.Dunlop@southtyneside.gov.uk 
Sunderland Council   Sarah.potts@sunderland.gov.uk 

Priority 2.1 (Youth)

Delivery organisationProjectContact details
Groundwork NE & CumbriaNorthern Futuresjacqui.hodgson@groundwork.org.uk 
Newcastle United Foundation North East Connected daniel.hancock@nufc.co.uk 

          

Priority 2.2 (Neurodiverse)

Delivery organisationProjectContact details
North East Autism SocietyNeurodiversity Employment Service NEjohn.facchini@ne-as.org.uk 

          

Priority 2.3 (Primary Care)

Delivery organisationProjectContact details
First Contact ClinicalFirst Contact to Purpose    susangill@firstcontactclinical.co.uk  
Recovery Connections LIFT OFF! mark.stephenson@recoveryconnections.org.uk  

      

Priority 2.5 (Women)

Delivery organisationProjectContact details
Big River BakeryBee-Leivegail@bigriverbakery.com 
Family Gateway HERizon aimee.perry@familygateway.co.uk 
Groundwork EmpowerHER jacqui.hodgson@groundwork.org.uk 
New College Durham Aspiring to Make Change Lizzie.Dickson@newdur.ac.uk 
Northern Rights Tara South Tyneside angelakellett@northernrights.org.uk 
The Wise Group Durham Women’s Hub elaine_ravenhall@thewisegroup.co.uk 
Uplift Associates My Future, My Path My Future, My Path 

          

Priority 2.6 (Employers)

Delivery organisationProjectContact details
Ingeus Inclusion Works lroberts@ingeus.co.uk
Newcastle College Group Open Doors: Building Inclusive Workplaces chris.byrne@ncl-coll.ac.uk