UK Local Authorities Run Race-Targeted Employment Schemes Using Taxpayer Funds, Sparking 'Two-Tier' Debate

Multiple UK local councils are operating employment support programmes explicitly restricted to ethnic minority groups, funded by central government grants including the Department for Work and Pensions' Economic Inactivity Trailblazer and the £2.6 billion UK Shared Prosperity Fund. A Telegraph investigation published in mid-June 2026 detailed schemes in Sheffield, Greater Manchester, and North Lanarkshire that direct support such as CV workshops, mentoring, and business growth aid solely to BAME residents or entrepreneurs.

In Sheffield, the Labour and Green-led council has allocated around £340,000 for 'targeted employment support for ethnic minority groups' within its Pathways to Work project, delivered via local charities and focused on economically inactive participants from specific communities. Official procurement documents confirm tenders seeking providers for projects tailored to Pakistani, Hong Kong expat, South East Asian, Roma Slovak, and Somali groups.

Greater Manchester Combined Authority, chaired by Andy Burnham, has applied similar grants to 'culturally appropriate employability support' for BAME residents in Oldham, while North Lanarkshire Council in Scotland limited certain business programmes to black and minority ethnic applicants. These initiatives operate under the Equality Act 2010's provisions for positive action when groups are statistically under-represented in employment.

Critics argue the approach creates a two-tier system. William Yarwood, Campaigns Director of the TaxPayers' Alliance, stated: 'Taxpayers should not be funding schemes that exclude people because of their race. Race-based eligibility smacks of identity politics and a two-tier system.' Alka Sehgal Cuthbert of Don't Divide Us described the programmes as 'segregationist' and questioned prioritising race over factors like age, locality, education, or skills gaps. Proponents frame them as addressing documented employment disparities for minority groups, consistent with longstanding government strategies.

The developments follow broader scrutiny of public sector diversity policies, including after high-profile incidents involving policing responses. White working-class communities in deindustrialised areas also face elevated economic inactivity rates, raising questions about need-based versus identity-based targeting.