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This report presents an evaluation of Phase 1 of the Working for Families Fund (WFF) covering 2004-06. WFF was established to invest in new initiatives to improve the employability of parents who have difficulties in participating in the labour market, specifically in employment, education or training. The Fund supported these parents through helping them find sustainable childcare solutions and through providing or accessing other relevant employability-related services. In rural areas, barriers created by poor transport, limited services and the lack of a critical mass of clients were also particularly important. WFF contributes to the Scottish Executive’s Closing the Opportunity Gap approach to tackling poverty and disadvantage, by improving rates of employment and economic activity, and to its commitment to eradicating child poverty within a generation.