The Department for Work and Pensions’ decision to award to the Wise Group a multimillion pound contract to help workless families in England will lead to the creation of 60 jobs, mainly among charities, according to the Scottish social enterprise.
The Wise Group, based in Glasgow, was one of eight prime contractors chosen for the new £200m payment-by-results scheme.
All the other prime contractors are private companies except Working Links, which is a joint private, public and voluntary sector venture.
A Wise Group spokeswoman said its contract covered north-east England and could be worth up to £12m over three years.
She said it planned to recruit 30 staff and its subcontractors would employ another 30. Half of its subcontractors are voluntary organisations; the other half are from the public sector.
"The voluntary sector will have a significant involvement in this initiative in the north east," the spokeswoman said.
The DWP is allocating money from the European Social Fund for the initiative, which is called Support for Families with Multiple Problems.
The initiative has been set up to tackle entrenched worklessness and will pay providers according to the number of people they get into work or progress closer to the labour market.
The Wise Group has branded the scheme FamilyWise across the north east.
About 300 Wise Group staff employed on welfare-to-work contracts transferred to private sector companies last year when the organisation’s bid to become a prime contractor in the DWP’s Work Programme was unsuccessful.