Shaw Trust picks up four Instant Muscle contracts

The Shaw Trust has taken on 20 staff and four public service delivery contracts previously held by failed charity Instant Muscle.

The trust has landed contracts covering four areas in England and Wales under the Department for Work and Pensions' New Deal for Disabled People scheme, designed to help disabled people into employment.

But the trust missed out on the multi-million-pound Pathways to Work contract held by Instant Muscle, aimed at helping long-term unemployed people back into work. The contract went instead to private company A4e.

Catherine A'Bear, chief officer, corporate affairs at the Shaw Trust, said the trust would take on 20 former Instant Muscle employees for the remainder of the NDDP contracts, which run until the end of June. It has agreed to backdate the employees' pay to the date that Instant Muscle went into administration.

Instant Muscle, which provided return-to-work training for unemployed people, went into administration in February, with the loss of 250 jobs (Third Sector, 5 March).

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