Struggling families to get £200m boost

The outreach programme will be delivered by a mixture of public, private and voluntary organisations which will be paid by results. Focusing on households with at least one member on benefits, the scheme will complement work by local authorities to help the 120,000 most dysfunctional households in the country.

Prime Minister David Cameron last month announced £448 million for councils to send in trouble-shooters to such families over the next four years.

The latest initiative aims to help people acquire the skills to find work and stay in it. Eight welfare-to-work companies have been appointed by Mr Grayling to work with councils and more than 200 local organisations, most of which are voluntary or charitable. It will be funded out of money from the European Social Fund.

Mr Grayling said: “We now have a comprehensive programme that I believe can make a real difference to these troubled families.”