The third sector bidding consortium 3SC has predicted that it will be enable charities to win business in the Work Programme even though it did not win any prime contracts.
The consortium was told last November that it had not been shortlisted for any prime contracts under the programme, which offers contracts worth as much as £50m to deliver back-to-work services for the long-term unemployed.
Michael O'Toole, chief executive of 3SC, predicted that charities would win more work in the Work Programme, and under better terms, than with previous government welfare-to-work contracts.
"In practical terms, this has offered us more flexibility than if we'd won a prime spot," he said. "We're confident that we can generate more business and we can still offer a decent profit for our members."
He said the Merlin Standard, drawn up by the Department for Work and Pensions to govern how prime contractors should act, would make the supply chain process fairer for charities.
"There are many more safeguards in place to protect charities," he added.