A comprehensive package of measures to help the voluntary sector and mutuals compete for contracts to cut reoffending was announced today by the Cabinet Office and the Ministry of Justice.

This follows proactive engagement with a range of organisations from the voluntary sector, social enterprises and entrepreneurial staff in Probation Trusts looking to form new mutuals.

Many of these measures are being introduced in response to the recommendations set out in social enterprise organisation 3SC’s action plan.

This follows existing support from the Cabinet Office that gives probation staff mutuals access to a £10m Mutuals Support Programme.

The measures will support new and existing providers from the voluntary, social enterprise and private sectors, radically changing the way offenders are rehabilitated through the gate and into the community, delivering better value for taxpayers through Payment by Results.

The Cabinet Office and the Ministry of Justice are providing support to:

Develop a financial modelling tool to enable voluntary, community and social enterprises, (VCSEs) to assess sub-contract offers.

Provide a central legal function to check VCSE organisations’ contractual terms and conditions with main providers.

Run a series of workshops to help VCSE organisations understand the reform process and develop the vital skills they will need to compete for and deliver rehabilitation services.

Create a database of VCSEs and mutuals involved in the rehabilitation of offenders to help organisations form partnerships and consortia.

The Cabinet Office’s Mutuals Support Programme is providing intensive one-on-one support to prepare the first cohort of seven fledgling probation Mutuals for competition.

This includes providing professional services, such as legal, commercial and tax advice, on behalf of the potential mutuals.

As well as access to the Cabinet Office’s network of commercial experts, delivering capability-building workshops and one-on-one coaching.

Separately, there will also be up to £6m available to assist VCSEs to bid for contracts or to secure social investment through the Investment and Contract Readiness Fund and at least £1m to support these organisations using social action in the rehabilitation of offenders through Cabinet Office’s Centre for Social Action.

Deputy Prime Minister Nick Clegg said: "I'm pleased to announce a package of tailored support to help fledgling mutuals and smaller rehabilitation organisations bid for contracts.

"We want to build on the best from the public sector, the best from the private sector and the best from the voluntary sector to break the cycle of crime for good.‪

"That is why we are reorganising the Probation Service, so that the public, voluntary and private sectors can work more flexibly and effectively side by side. All of those with a strong track record in this area are able to get involved."

Prisons and Rehabilitation Minister Jeremy Wright said: “We have set out our plans to transform the way offenders are rehabilitated in the community and the voluntary sector has a wealth of expertise and experience, a reputation for innovation and a key role to play.

"Probation mutuals will also be supported to play a key role in the delivery of services.”

Civil Society minister Nick Hurd added: “The social sector has huge value to add in this bold new approach to reducing reoffending and we are working closely with the Ministry of Justice to make sure that the commissioning process gives us the best possible chance of capturing that value.

"This innovative package of support is designed to help boost the capacity and capability of charities, mutuals and social enterprises”.

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