Welfare Reform Bill

This group of amendments allows us to debate the Government’s approach to contracting with the public, private and voluntary sectors to deliver welfare-to-work services on their behalf. As we set out in last year’s White Paper, commissioning of this type is crucial to delivering the outcomes we are looking for. In particular, it is important to use the advantages that third sector organisations can have in delivering support for the hardest-to-help and specialist groups. They can play a vital role in welfare provision. They are well placed to offer services because of their local experience and knowledge of what their community needs, and their rapport with their constituency groups. These organisations have already demonstrated their ability to reach communities cost-effectively and to gain local trust and credibility, which the Government cannot. The noble Baroness, Lady Turner, talked about comparative outcomes. It is not a case of one sector delivering better outcomes than the other, but about ensuring that government and contracted providers work in partnership to deliver the range of provision necessary to support our diverse customer groups. It is the type of provision in place that matters, not who is delivering it. Under our current arrangements the private sector delivers 32 per cent of the welfare-to-work contracts, the public sector 38 per cent, and the third sector 30 per cent. I would say to the noble Baroness, Lady Afshar, that where communities are particularly diverse, there is a clear case for local specialist knowledge either as a prime contractor or a subcontractor that can be brought to bear. That would not necessarily be at the same level in Jobcentre Plus.