Welfare-to-work services could be outsourced to private and voluntary sectors in line with the recommendations of an independent review, the government said today.
New work and pensions secretary James Purnell said the reforms would mean services were run by the "best provider", whether from private, public or voluntary sectors.
He pledged the creation of an "effective and growing market" for welfare-to-work, following last year's review by former City banker David Freud.
Incapacity benefit
Purnell said: "We shouldn’t be ideological about who provides the service. We should just work out who is best at providing it. I’m glad to announce that David [Freud] has agreed to come back to advise the department on implementing his ideas."
He reiterated plans to replace incapacity benefit with employment and support allowance, due to come into force in October.
He said the government intended to help everyone who faced barriers to work, but those who were capable and did not want to work or train would face sanctions.
The Department for Work and Pensions also published research today that found benefit sanctions had a negative effect on claimant's health and hit the most deprived hardest.
Oneupmanship
Kate Green, chief executive of Child Poverty Action Group, said the findings suggested benefit sanctions should play a "more limited role."
She warned Purnell against engaging in "oneupmanship" with the Conservatives, who have previously suggested docking jobseekers allowance from claimants who fail to accept job offers or participate in community work schemes.
Green added: "The Department for Work and Pensions is in danger of losing track of its headline priority to end child poverty. The new secretary of state must refocus welfare reform on positive engagement and the protection of family security."
More information
Department for Work and Pensions
Related articles
Benefit claimants to face skills checks
Peter Hain: new incapacity benefit test will halve claimant rates
Employment support allowance: how will life be after incapacity benefit?
Providers to get results-based payments to help jobless into work
Single parents could face benefits cut
Freud report orders more single parents to find work
Tories defy Balls on child abuse reports
04 February 2009
News round up: Tories defy Balls on child abuse reports
04 February 2009
Brown urged to launch wide inquiry after Baby P
01 December 2008
News round up: Brown urged to launch wide inquiry after Baby P
01 December 2008
Positive images of social work
01 July 2009
Laming review of child protection
12 May 2009
Bristol finds common assessment framework liberates social workers and spreads responsibilities
01 July 2009
Helping people with mental health problems who are in debt
29 June 2009
How ITV Fixers have enabled young people to go public with life stories
17 June 2009
Social workers 'must use GSCC code to challenge workloads'
One third of children may be living with binge-drinking parents
Khyra Ishaq: Accused face retrial after jury discharged
Details of government consultations
12 June 2009
Government Legislation
02 December 2008
Private Member Bills
21 November 2008
