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GUIDANCE · UPDATED 30 JULY 2026

Connect to Work is a £1.2 billion DWP grant programme running to 2030 that pays local authorities to place disabled people and those with health conditions into work — there is no direct procurement route for SMEs, but sub-contracting opportunities exist through the 49 local-authority Accountable Bodies.

30 July 2026: Connect to Work - Programme Business Case 2 Summary · first published 30 July 2026

What it says, in plain English

Connect to Work is a Department for Work and Pensions (DWP) programme, part of the government's Get Britain Working strategy, that funds supported employment — a 'place, train and maintain' model — for people with disabilities or complex health barriers. It runs from 2025/26 to 2029/30, costs £1.2 billion in total, and aims to support up to 100,000 people per year at peak, with roughly 288,000 participant starts in total. The money flows as grants to 49 local-authority-led Delivery Areas (called Accountable Bodies), not via open procurement contracts with private suppliers. SMEs cannot bid directly to DWP for this work; however, Accountable Bodies are explicitly permitted to sub-contract delivery, and the digital referral system (iSupplier Portal) is open to 'ABs or their sub-contracted providers'. An early insights evaluation report is expected in Autumn 2026, which may signal where further delivery capacity is needed.

WHO THIS APPLIES TO

Who it binds
Central government buyers
Contract values
£5m+
Applies from
1 April 2025
Sectors
Employment support, health and disability services, and supported employment providers; sub-contracting opportunities sit within local-authority delivery areas nationally.

THE ENKII VIEW

The entire programme is structured as a local-authority grant — not a central-government procurement — so SMEs cannot win prime contracts through a standard tender process. The real opportunity lies in sub-contracts: Accountable Bodies must deliver supported employment at scale and are likely to need specialist employment-support providers, particularly those with Individual Placement and Support (IPS) or Supported Employment Quality Framework (SEQF) experience. The Fidelity Assurance contract (£7.75 million, awarded to Social Finance Limited) is already gone, but the evaluation consortium and any future re-procurement cycles remain watch points for specialist research or employment-support SMEs.

What a small business should do about it

1. Identify and approach your local Connect to Work Accountable Body directly to explore sub-contracting opportunities — use the GOV.UK 'Find a Job' or your local combined authority website to locate the lead body for your area.

SMEs delivering supported employment, IPS, or disability employment servicesThe iSupplier Portal explicitly enables 'ABs or their sub-contracted providers' to manage referrals, confirming sub-contracting is built into the delivery model. Accountable Bodies must deliver at scale and are likely to need specialist providers.

2. Obtain or document your IPS or SEQF fidelity credentials now — these are the key quality measures DWP uses to assess delivery, and Accountable Bodies will preference sub-contractors who can demonstrate them.

SMEs with IPS or Supported Employment Quality Framework (SEQF) accreditation or experienceAnnual fidelity reviews against 'IPS 25 and shortened SEQF scales' are a key programme control; high fidelity is explicitly linked to better outcomes and therefore better contract performance.

3. Watch for the Connect to Work early insights evaluation report due Autumn 2026 — it will indicate where delivery is under-performing and where additional specialist capacity may be commissioned.

SMEs in employment support, health, or social research sectorsThe evaluation consortium is tracking performance across all 49 delivery areas; gaps in delivery could trigger re-procurement or expansion of sub-contracting opportunities, particularly given the 20,000+ participant starts already revised downward.

4. Engage with your Mayoral Combined Authority's employment team, not just DWP, as these areas receive funding via MHCLG Integrated Settlements and have their own accountability and commissioning arrangements.

SMEs operating in Mayoral Combined Authority areas (e.g. Greater Manchester, West Midlands, West Yorkshire)From 2026/27, around 43% of Connect to Work funding routes through Integrated Settlements to EMSAs, giving Mayors more flexibility in how they commission delivery — including potentially different sub-contracting routes from direct-grant areas.

5. Register on the iSupplier Portal (DWP's Provider Referrals and Payments system) so you are operationally ready to receive and manage referrals if you secure a sub-contract with an Accountable Body.

All employment support SMEsThe document confirms iSupplier Portal is the digital interface through which 'ABs or their sub-contracted providers' manage referrals — being registered in advance reduces onboarding friction when a sub-contract is agreed.

The rules, anchored to the text

Every rule below quotes the official document verbatim.

Connect to Work runs from 2025/26 to 2029/30 at a total estimated cost of £1.2 billion, targeting up to 100,000 people per year at peak. (DWP-funded programme, all 49 Delivery Areas, England)

The programme has been agreed to run from 2025/26 to 2029/30 at an estimated cost of £1.2 billion

Delivery is through grant funding agreements with 49 local-authority Accountable Bodies — not through central-government procurement contracts with private suppliers. (All Connect to Work Delivery Areas, from April 2025)

Delivery is through grant funding agreements to 49 delivery areas with a lead Accountable Body (AB).

The total revised programme funding is £1,177.1 million across 2023/24 to 2031/32, with a unit cost per participant start of £3,886. (All Connect to Work grant areas, 2025/26–2029/30)

The updated grant unit cost per participant start in nominal terms is £3,886.

The programme uses an 85% out-of-work / 15% in-work retention split; out-of-work participants receive up to 12 months support and in-work participants up to 4 months. (All Connect to Work Delivery Areas)

Connect to Work is primarily aimed at out-of-work participants (85%) with in-work retention support (15%); out-of-work participants can receive up to 12 months support and in-work participants up to 4 months, with extensions on a case-by-case basis.

High fidelity to the Individual Placement and Support (IPS) and Supported Employment Quality Framework (SEQF) models is a key programme control; services are reviewed annually against IPS 25 and shortened SEQF scales. (All Connect to Work Delivery Areas excluding Greater Manchester (full fidelity assessment); from August 2025)

Close adherence (known as high fidelity) to the evidence based Individual Placement and Support (IPS) and Supported Employment Quality Framework (SEQF) models is associated with better outcomes. DWP has introduced a Fidelity Assurance system into Connect to Work. Services will be annually reviewed against the IPS 25 and shortened SEQF scales.

The Fidelity Assurance contract (£7.75 million) was awarded to Social Finance Limited (with BASE as key sub-contractor) and services started 1 August 2025 — this contract is no longer open. (Connect to Work Fidelity Assurance, from 1 August 2025)

a successful tender was awarded to Social Finance Limited who will carry out Fidelity Assurance services across the relevant Connect to Work geographies along with their key sub-contractor BASE. The total Contract Price is £7.75 million.

The iSupplier Portal (the digital referral interface) is explicitly open to Accountable Bodies or their sub-contracted providers, confirming sub-contracting is part of the delivery model. (All Connect to Work Delivery Areas using the PRaP digital system)

iSupplier Portal – user interface for PRaP that enables ABs (or their sub-contracted providers) to manage referrals

An independent evaluation by a consortium led by the National Centre for Social Research commenced November 2025, with an early insights report expected Autumn 2026 and a final report in 2031/32. (All Connect to Work areas excluding Greater Manchester; evaluation 2025–2031)

DWP has commissioned a consortium led by The National Centre for Social Research to evaluate the Connect to Programme... early Insights report to be published in Autumn 2026

Total expected participant starts revised down from 308,819 (PBC1) to 288,455 (PBC2), with peak annual volumes of approximately 103,000 starts in 2027/28. (All Connect to Work Delivery Areas, 2025/26–2029/30)

The business case now includes for a refined rollout schedule and updated assumptions which reduce projected participant starts from 308,819 in PBC1 to 288,455 in PBC2, a reduction of 20,364.

From 2026/27, approximately 43% of programme funding routes through Integrated Settlements to Established Mayoral Strategic Authorities (EMSAs) rather than direct DWP grant agreements. (Connect to Work EMSAs (10 delivery areas from 2026/27), funded via MHCLG Integrated Settlements)

routing around 43% of programme funding through this model for the Spending Review period.

The central scenario benefit–cost ratio is 2.28, meaning £2.28 of benefits are expected for every £1 spent; the net present value is £1.3 billion. (Whole programme, central scenario)

In the central scenario, the benefit–cost ratio is estimated at 2.28... The net present value (NPV) for the preferred option is £1.3 billion

This briefing is enkii's interpretation of the official document — the official text always governs.

Official document on GOV.UK

Source document © Crown copyright, reused under the Open Government Licence v3.0 via the GOV.UK Content API. enkii tracks every Procurement Policy Note and briefs changes the day they land — see all briefings.