Over 40,000 more sick and disabled people are set to receive employment support following a £167.2m investment in the Connect to Work programme.
The funding will put specialist employment advisers in GP surgeries, mental health services and community-based referral partners across nine more areas in England, including Cumbria, Oxfordshire, West Sussex and Brighton.
The Department for Work and Pensions (DWP) said the cash forms part of a wider £1bn investment over the next five years, aiming to help 300,000 sick or disabled people in England and Wales into work by 2030.
There are currently 2.8 million people out of work because of health conditions.
Support involves embedding advisers within healthcare teams, linking people from community health programmes to employment support, using virtual reality classrooms for interview practice, and helping parents access affordable childcare.
Workshops to boost confidence and communication skills are also included.
Work and Pensions Secretary Pat McFadden, said: “Writing off people with long-term health conditions or disabilities fails them and fails our economy.
“We are giving people a hand up, not a handout, realising their potential and providing them with the skills to succeed as part of our Plan for Change.
“Thanks to local areas hitting the ground running, it is already delivering results – proving that when we invest in people and communities, everyone wins.”
Minister of State for Health Stephen Kinnock, said: “Employment support can be a crucial part of good health, but for too long, we’ve treated health and work in isolation.
“Our 10 Year Health Plan sets out how we are bringing the two together, through innovative schemes like this one.
“For many people, getting help finding the right work could be as an important part of their prescription as the correct physio or medication.”
Kinnock added: “This investment is just what the doctor ordered and will help thousands more find the help they need to get back into a job.
The scheme is locally led, so each area can tailor the support to local needs, job markets and challenges.
Funding announced includes up to £49.7m for the North East to support 13,800 people, £32m for the South Midlands to help 8,050 people across five council areas, and £22.8m for Devon, Plymouth and Torbay for 5,950 people.
North East Mayor Kim McGuinness, said: “The North East is an amazing place to work but too many people are facing barriers when they’re trying to find a job.
“However, that’s all about to change as we help thousands of people back to the workplace with tailored support that tackles the issues they’re facing.
“It’s all part of our New Deal for North East Workers, we’re helping local people secure the jobs that work for them.
“Because when everyone can succeed, our communities and our economy thrive.”