JOBCENTRES should be split up, with their employment arms forced to compete against private-sector and voluntary providers and other services rebranded as Citizen Support, a think-tank has recommended.

Under the plan, the employment services arm would be separated and the rest of Jobcentre Plus would be expanded and renamed to reduce the "stigma" attached to it.

The right-of-centre Policy Exchange said just over a third of people using jobcentres find sustained work, with many finding themselves in and out of employment largely due to having barriers to work which are not fully dealt with.

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The report said the Government's welfare reforms have improved things, but there is still too much inefficiency in the system.