The government has been urged to concentrate on growing the economy so welfare-to-work providers can hit targets.

So says Kirsty McHugh, chief executive of Employment Related Services Association (ERSA), trade body for organisations in the welfare-to-work sector.

McHugh’s comments follow warnings by employment minister Chris Grayling yesterday that there would be no bail-outs for welfare-to-work providers should they fail to hit targets.

But McHugh hit back. She told Recruiter: “Nobody in the welfare to work industry is expecting a bail-out. The organisations I speak to, day in, day out, went into their contracts with their eyes wide open. They knew what they were getting into and they put together their financial models on the basis they would be able to deliver.

“The big unknown is the state of the economy. Welfare-to-work providers are working on the basis that their targets are achievable. The government’s job is to ensure we have a growing economy. That is what we are looking to government to achieve for us. If that is the case welfare-to-work providers will be able to hit their targets, I am sure.”