Killing the Golden Goose? Third Sector Organizations and Back‐to‐Work Programmes in Germany and the UK

Abstract

Abstract Third sector, or not‐for‐profit, organizations have been viewed in many parts of Europe as agencies that can be harnessed by public policy programmes to support the socially excluded. Within the emerging mixed economy of welfare, third sector agencies offering training, support and employment for groups disadvantaged in the labour market provide an important example. This illustrates, from one specific field, the dynamics occurring at the interface between public and third sectors in the delivery of public policy goals. This article examines both the history of ‘partnership regimes’ in this field and the evolving local organizational arrangement. The developments in the contrasting welfare regimes of Britain and Germany, which exemplify different institutional traditions, are analysed. The potential impact of regulatory changes on the capacity of third sector work integration agencies to deliver policy goals is assessed in both countries using evidence from recent case study research. The analysis suggests that the emerging managerialist partnership structures are tending to convert third sector organizations into ‘just in time’ deliverers of poor programme outcomes in both welfare regimes while also eroding their distinctive potential to provide more than mere labour market integration.