19 July 2007
Buyers may need to play a greater role in encouraging people back to work, if proposed reforms to the welfare system are agreed.
Mike Zealley, associate partner for procurement at Atos Consulting and an adviser to the Department for Work and Pensions (DWP), said the department may create an incentive system for welfare organisations that is linked to the number and ability of people they return to employment.
Procurement may help commission a few large prime contractors to replace the DWP's regional providers. These will be able to manage an increased spend of several billion, up from about a billion a year.
These recommendations are outlined in a report on the welfare system by David Freud, a former banker, which awaits a government response.
Zealley added: "It's going to be the job of a substantial proportion of procurement, managing this overall market and developing relationships with these new suppliers."