Fresh doubt over contracting plan

Confusion surrounds Government plans to involve more voluntary organisations in welfare and employment services.

Third Sector has learnt that the Department for Work and Pensions is to publish an action plan explaining how and to what extent it will contract services out to charities.

The plan has been put together in response to investment banker David Freud's recent report, which recommended a radical overhaul of the system.

Last week, however, The Guardian published a leaked memo from Treasury minister Stephen Timms, saying a new funding model was not possible in the immediate future.

Chief executives body Acevo called the situation "worrying". A spokeswoman for the DWP said: "We will be responding to the report in the summer."

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