Companies and charities should be paid to help those looking for work as part of an overhaul of job centres, a think-tank close to the government has urged.
The Centre for Social Justice – established by Work and Pensions Secretary Iain Duncan Smith – said the current system was letting people down.
Its report pointed to an Australian model where private and voluntary organisations bid to do the work.
A government spokesman praised job centre advisers and managers.
The think-tank claimed Job Centre Plus focussed too much on arranging social security for those looking for work, instead of identifying the factors keeping it from them.