Speaking at the Association of Chief Executives of Voluntary Organisations conference last week, Hodge said local agreements and ring-fenced funding would protect the sector's involvement in trusts.
"Early intervention, identification, prevention and services built around the needs of the child is music to the ears of the voluntary sector, which is more sensitive to users' needs," said Hodge. "But if the voluntary sector is to become a bigger player it will need stronger outcomes and greater accountability."
The National Council for Voluntary Youth Services welcomed Hodge's focus on the sector, but called for a "level playing field" so that voluntary groups could bid against the private sector.
Susanne Rauprich, chief executive of the council, said: "There is a need for the principle of full-cost recovery, so that organisations can charge for the full cost of services rather than be expected to provide them on the cheap."
