Prince's Trust named as provider in 'radical' Work Programme initiative

The £5bn initiative is the largest payment-by-results scheme ever run by government. For the first time all welfare-to-work providers will be paid through the benefit savings made from the people they help find employment.

Providers will have the freedom to design tailored support for individual clients and extra money will be paid to those who get the "hardest to help" people off benefits and into work.

Grayling claimed the Work Programme represents a radical change to the way back-to-work support is delivered.

"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 get back to work are being given the chance to do just that," he said.

"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’s built around their needs."

In total, 16 private and two voluntary sector organisations have been appointed as "prime contractors" for the Work Programme, including A4E, Serco and G4S. These 18 organisations will then subcontract welfare-to-work activities to the 289 voluntary sector groups.

The Work Programme will begin in June when the first customers are referred from Jobcentre Plus.