John Hutton has detailed the government's green paper on welfare reform, focusing on ways of helping incapacity benefit claimants back to work.

The work and pensions secretary said: "We will act to reduce the number of new claimants, we will provide greater help for those on the benefit to get back into work, and for the most severely sick and disabled we provide even more support."

Stakeholder Response: Shaw Trust

Shaw Trust chief executive, Ian Charlesworth said: "We're very pleased that the government is providing a way for its voluntary sector partners to play a much wider role in enabling those claiming incapacity benefit to get back to work, or to break into the job market for the first time.

"We hope that we will at last have a real chance to help the 1.2 million who are currently economically inactive but who want to work.

"The real test will be in the implementation of these reforms. This is the biggest shake-up of the system since the introduction of the old invalidity benefit and these proposals will only be effective if they are backed up with the right support.

"We hope that the changes will be handled sensitively and explained clearly so that everyone can take advantage of the opportunities they offer."

Stakeholder Response: Wise Group

Abigail Howard, head of policy and research at the Wise Group, said: "We welcome the government's green paper and its emphasis on assisting people on Incapacity and related benefits into employment.

"Our own experience of working with the IB client group, through our delivery of programmes such as New Deal for Disabled People (NDDP), has shown us that many are willing and able to work, with the right, individualised, support.

"Our NDDP programme has successfully helped 2,200 people to move into employment.

"The individuals targeted by this legislation are not a homogenous group and it is vital that this is recognised in any programme developed to support those who can work, into employment.

"The 'reactivation' approach taken by the Pathways to Work pilots has been successful and, alongside other programmes such as NDDP, has helped many individuals to find work.

"However if the target of moving one million people from benefits to employment over the next ten years is to be met a range of provision and opportunities are required.

"Work-first approaches principles take a fairly 'light-touch' approach, and are highly appropriate for those who are closer to the labour market.

"However for many of the stock of those on IB, who have been out of work for some time, who lack relevant skills or experience, or who need to tackle personal reservations about their ability to work, more intensive and supportive approaches may will undoubtedly be required.

"This could include training and employability programmes such as the Intermediate Labour Market that provide individuals with real work experience, skills training and employability support in a supportive environment and allows them to demonstrate to both employers and to themselves that they are capable of work.

"It is vital that employers are engaged in this process, as demonstrated by recent research by the Chartered Institute of Personnel and Development.

"This showed that one in three of employers deliberately exclude people with long-term sickness or incapacity when recruiting staff and that only three per cent actively target them in their recruitment strategies.

"This is where intermediary employment organisations such as the Wise Group can have an impact: acting as a bridge between worklessness and the labour market by supporting individuals to the stage where they are ready to work; and providing advice and support to employers, reducing the risks and reticence they face in employing former IB recipients."

Stakeholder Response: Help the Aged

Mervyn Kohler, head of public affairs at Help the Aged, said: "It is a travesty that incapacity benefit, in part, has become a surrogate for early retirement.

"In that context, it symbolises a waste of human resources, a loss of individual dignity and self-esteem, and a misuse of taxpayers' money.

"People who become locked into early retirement by this route deserve help.

"The package proposed by the DWP today commands support, but it must be genuinely delivered on its twin tracks.

"The help it promises must be fairly provided, and the limitations of real disability must be honestly recognised.

"It implies a serious and sustained long-term re-appraisal of the way in which the labour market works by all the players in the process.

"The potential prize is priceless. At best, it could herald a revolution in the way older people are involved in paid employment.

"It could be the vehicle which translates the ageing of society from being a threat into being an opportunity."

Stakeholder Response: Institute of Directors

Geraint Day, head of health policy at the Institute of Directors, said: "We welcome today's DWP green paper on welfare reform. Reform of the incapacity benefit system in particular is long overdue.

"There needs to be a much greater emphasis on rehabilitation for employees on long-term sick leave.

"The lack of an effective rehabilitation service, or at least ways of linking into effective ways of helping people back to work, has meant that the onus is currently largely been on employers and individuals to deal with the issue of returning to work after a prolonged absence.

"The Pathways to Work pilots were a welcome initiative, which we would like to see rolled out across the country."

Stakeholder Response: Age Concern

Age Concern England director general, Gordon Lishman said: "Reforming Incapacity Benefit and meeting the challenge of the ageing workforce go hand in hand.

"Almost half of current Incapacity Benefit claimants are over 50 and this figure is set to rise over the next 15 years as the benefit is extended to people aged up to 64.

"Older people have a huge contribution to make, yet almost a million people over 50 do not work but want to, at a cost to the UK economy of £30bn each year.

"We are pleased the green paper includes proposals for intensive support programmes for IB claimants and higher rates of benefit, but we need reassurance that the new requirements placed on people to find employment will be flexible enough to take into account individual health needs and circumstances.

"A 'one size fits all' approach risks penalising those who are genuinely unable to take part in these new employment schemes.

"We welcome the specific attention the green paper gives to addressing the barriers faced by older workers.

"But we remain concerned that for many people in their 50s help will come too late when they are already ill, disabled or long-term unemployed and likely to never work again."