Across the UK, people who face the greatest barriers to work often live in the communities least served by mainstream skills provision. They are talented, capable and motivated, but too often held back by structural disadvantage, low confidence, disrupted education, potential trauma, caring responsibilities or simple lack of opportunity. Last year we created our Local Community Skills Fund (LCSF) to respond to this reality. We wanted to back organisations rooted in place, trusted by local people and best positioned to create pathways that start with relationships; and result in employment.
Following a highly successful first round, we’re now launching Local Community Skills Fund 2.0. This round builds on powerful early impact which saw hundreds of people supported, confidence rebuilt, skills strengthened, and local ecosystems transformed. Most importantly, it builds on a clear insight emerging from grantee reflections: when support starts with trust, takes place in familiar community settings and offers hands‑on work exposure – people progress.
Learnings from Round 1: Shaped by trust and real world experience
Round 1 demonstrated that how support is delivered is just as important as what is delivered. Across 30 grants, organisations consistently reported that progress begins with relational, flexible and person‑centred work.
As one theme from the interim report shows, “progress rarely happens without relationships” and trusted spaces – from community cafés to gardens, youth hubs and creative studios, these all became essential gateways for engagement. Many participants entered programmes while not in education, employment or training, or while managing multiple barriers. In these settings, people felt able to “reconnect with confidence and with opportunity.”
This relational approach translated into tangible outcomes. Based on survey data from partners:
- 91% of participants improved their employability or vocational skills.
- 100% of those reporting said their confidence and wellbeing increased.
- 41% showed positive progression, with 81 people moving directly into employment and 66 progressing into further education.
These are not small wins. For many, these represent the first steps back into systems they had previously felt excluded from.
Models that worked: Readiness and supported work exposure
Two delivery models emerged as particularly effective in our interim reporting from our round 1 funding:
1. Foundational Readiness
Supporting people who are furthest from the labour market, this model offers time, flexibility and safety. These programmes often took place in informal settings eg. community gardens, intergenerational music sessions, drop‑ins or creative projects helping people stabilise, build trust and grow confidence. Organisations described how this model “builds confidence first, before any formal skills.”
2. Supported Work Exposure and Transition
These programmes created “real‑world environments without high stakes,” giving people the chance to test work gradually, with structured mentoring and increasing independence. Community cafés, hospitality training, volunteering roles and workplace visits helped participants develop workplace behaviours and experience success in settings that felt achievable.
The Zink Project exemplified this model: their community café placements supported 133 long‑term unemployed people, with 95% reporting increased skills and 88% progressing towards qualifications or employment. Their work was recognised with a national CSJ Award illustrating how small, place‑based investments can catalyse sector‑leading practice.
Impact Beyond Individuals: Strengthening Local Systems
Round 1 of funding has been more than a grant programme; it has acted as a catalyst for strengthening local ecosystems. Community‑rooted organisations used the flexible funding to build referral networks, develop new partnerships and increase their credibility with employers and public services.
Across respondents:
- 8 organisations leveraged additional funding, using LCSF evidence to unlock new investment.
- 6 strengthened relationships with employers and local authorities.
- 4 improved accessibility and reach for underserved groups.
For example, Intergenerational Music Making used the grant to grow its delivery model across two regions, deepen partnerships with schools and local authorities, and plan strategically for scale. Meanwhile, Inspire 2 Ignite strengthened its role within youth justice pathways, becoming a recognised referral partner for Cambridgeshire County Council.
These ripple effects widen the impact far beyond immediate programme participants shaping more inclusive, place‑based skills systems.
Launching Local Community Skills Fund 2.0
Building on this learning, we are excited to launch the next round of the Local Community Skills Fund. One key focus is to fund innovative local and community-led projects that may not be eligible for traditional funding sources. This could include anything from setting up a community garden to running a digital skills workshop. The fund also seeks to help disadvantaged people develop the skills they need to find employment by providing training and support.
Additionally, the fund will address specific skills gaps in local areas and reach out to communities where access to training and development opportunities is limited. By working with external organisations, the fund aims to create a sustainable model for delivering social impact through funding and match-funding.
Round 2 will continue to invest in:
- Community‑embedded organisations who meet people where they are
- Programmes that blend trust‑based engagement with skills development
- Real‑world work exposure, transitional employment models and practical learning
- Organisations at pivotal stages of growth, ready to deepen their local role
- Communities with the least access to opportunity
If your organisation is rooted in place, trusted by local people, and committed to creating inclusive, relational and practical pathways into work, we invite you to apply.
Together, we can continue to build the place‑based skills pathways that start with trust and lead to lasting change.
Applications for the Local Community Skills Fund 2.0 are now open. Grants of up to £10,000 are available to UK Charities, Social Enterprises and Community Groups. Click here to find out more.