Voluntary sector groups, including Mencap, the Citizens Advice Bureau, the Prince's Trust and Action for Blind People, are all going to be involved in delivering the Work Programme, described as the next step in the Government's welfare plans. It is expected they will provide a fresh approach to supporting people back to work.
The 18 private and voluntary sector organisations named as 'preferred bidders' will get the freedom to design support themselves, rather than having to do what is prescribed by Whitehall. In return, providers will be paid by results - with more for those who get the hardest to help off benefits and into work.
Launching the Work Programme at a visit to Action Acton, a West London charity named as one of the successful sub-contractors, on Friday, Grayling said: "This is a radical change to the way we deliver back-to-work support in this country. For the first time, those charities and voluntary sector organisations across the country with the know-how to help people with real difficulties in their communities to get back to work are being given the chance to do just that.
"Millions of people on out of work benefits who have previously been shunted from dole queue to training room to dole queue again will finally be able to access support that is built around their needs."
The 18 organisations named will be paid through the benefit savings made from the people they help get back to work - the first time such an approach has been tried on such a large scale.
Over the course of the seven years the contracts will run, the total value is likely to be between £3 billion and £5 billion.
In the first two years, the Work Programme is expected to help around a million people, making it the largest single welfare-to-work programme this country has ever seen. However, the programme is effectively uncapped, which means if more people need the tailor-made support it offers, they will receive it, said Grayling.
The organisations named as preferred bidders will now go onto contract signing and the programme will begin in June, when the first customers are referred from Jobcentre Plus.
