Announcing that a new welfare reform green paper will be presented to parliament in the near future, James Purnell set out far-reaching plans to transform the DWP, in particular Jobcentre Plus frontline delivery.

In his speech, he raised the possibility of opening up the whole of the department to privatisation, which PCS believes would have a devastating impact on the current welfare state.

The proposals also include a requirement for claimants of benefits to agree to take up training or seek medical/specialist help. PCS has continually questioned the need for such conditions when it has been proved that what customers need is assistance not threats.

While announcing this sea-change approach to the public sector, Mr Purnell praised Jobcentre Plus and its staff, stating. “It is perhaps not said often enough, but Jobcentre Plus is a world class organisation - not least because of the skills and knowledge of its staff.”

PCS general secretary Mark Serwotka said: “It is shocking that the DWP is now seen as a potential multi-billion pound industry to be exploited by private organisations pursuing a profit out of the welfare state. As well as questions remaining about the private and third sectors’ capacity to deliver welfare services, there is a fundamental issue of whether profits for the few should be the driving force of the welfare state, rather than the needs of those who rely on these services.”

DWP group president for PCS Jane Aitchison said: “While ministers praise the achievements of our members in delivering record employment levels and the lowest claimant count for 32 years, they are prepared to put these achievements at risk by transferring responsibility for getting people into work into the hands of untried and untested profit seekers in the private sector.”

PCS has been engaging in a series of seminars about welfare reform, including one hosted by the union in Cardiff on Thursday 26 June, where Mark Serwotka challenged employment minister Stephen Timms on the government’s strategy.