The employment services charities Shaw Trust and Careers Development Group (CDG) are to merge and form a new organisation with an income in excess of £142million.

The announcement comes after a thorough due diligence process confirmed a merger would be positive for the people both charities serve.

It would strengthen the ability of staff to deliver learning and skills, training and job opportunities to get people into or back to work and live more independent lives.

Currently, Shaw Trust and CDG offer different services in different parts of the country and bring complementary strengths and expertise.

John Briffitt, chairman of Shaw Trust, said: “The process we’ve been through has highlighted the benefits in blending the strengths of both charities, better serving those who are not working, including those with disabilities and those at disadvantage within society.

"Over a combined sixty years of service, both charities have helped thousands of people to build confidence, motivation and the skills to find and sustain work. While this is the beginning of a new chapter, this core principle will not change.”

Roy O’Shaughnessy, chief executive designate, said: “The opportunity to create a new charity that aims to sweep away the barriers faced by those who cannot find work is our challenge. In succeeding, we will have changed lives, families and communities.

"By combining the heart, skill and dedication of those working at both charities with the need to meet future challenges in delivering services, we will be better together than apart.”

Both organisations will now work towards securing clearance and finalising the legalities of the merger.

It is anticipated that this process will be complete by the end of 2012.

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