Welfare minister Steve Webb has said Work and Pensions Secretary Iain Duncan-Smith is looking at ensuring smaller providers get access to delivery of services in the new Welfare to Work programme.

Webb was speaking at a Shaw Trust fringe event at the Liberal Democrat Party Conference to a panel of charities and academics where many expressed fears that small businesses and charities would be squeezed out of the welfare to work programmes by larger organisations.

At the event Sally Burton (pictured), chief executive of Shaw Trust, which has a strong background in delivering government welfare to work programmes, warned its ability to function as a prime contractor in the new Welfare to Work programme would be extremely limited with voluntary and charity bodies struggling to compete with the private sector when it comes to capital investment.

“This is a time to press ahead with Big Society changes which help organisations such as Shaw Trust move people into jobs - through the encouragement of social enterprises for example, " Burton said. "In moving forward, we want to work even more closely with government and our partners to develop ideas, programmes and plans which make it happen."

She added: "Being a prime contractor rather than sub-contractor is vital in order to influence policy."

In response, Webb said Duncan-Smith was looking at contracts at the moment, to ensure that smaller providers got access to delivery of services.