Over 100 charity sub-contractors have joined the National Council for Voluntary Organisations (NCVO) special interest group to submit concerns over the viability of the Work Programme to employment minister Chris Grayling.

Launched following the government's spending review in October 2010, the Work Programme was devised to introduce "value for money for the taxpayer" by introducing a payment-by-results model for contractors. Some 508 civil society organisations (CSOs) are directly involved with the Programme. 

But while the NCVO broadly supports the scheme, it claims it may be at risk of "systematic failure" after receiving concerns from charity sub-contractors over its design and implementation.

The primary concerns centre around the effectiveness of the Merlin Standard, a code of conduct currently being piloted to ensure sub-contractors are treated fairly by prime-contractors. Sub-contractors say the timescale of one year to gain Merlin accreditation is too long and claim that its principles are too subjective. In August, think tank the Social Market Foundation claimed that at least 90 per cent of organisations involved in the Work Programme risked having their contracts terminated because of unreachable targets. The Merlin Standard will reach the end of its two-year pilot at the end of the year.

"The strength of the assessment process and its real-world application remains a serious cause for concern," says the NCVO in its submission The Work Programme - Initial Concerns from Civil Society Organisations, sent to Grayling yesterday.  

Concerns have also been raised that the size and complexity of contracts has excluded many CSOs from bidding for contracts. The NCVO recommendations reiterate recommendations in Lord Hodgson's Red Tape Review that the size of tender documents is proportionate to the size of the contract. In addition, it suggests the government should consider underwriting a small proportion of the contract value for CSOs amidst concerns that prime-contractors may not be passing on fair payment to sub-contractors.

"The voluntary sector has vast knowledge and expertise which could be put to good use within the Work Programme, so it is crucial to ensure that the sector is involved properly and fairly," said Sir Stuart Etherington, NCVO chief executive.

"While the broad aims and direction of the Work Programme is right, the devil is in the detail, and we urge the government to take these concerns seriously to ensure that the programme delivers good outcomes for all."