Faith in Britain has a "new and vital energy" which is building stronger communities throughout the UK, Tony Blair said on Thursday.

In a speech to Christian socialists he said that "faith communities" could play an important role in fostering social cohesion and set out plans to extend the voluntary sector in the UK.

The speech was seen as a clear sign that Tony Blair believes religious and community-based groups have a stronger ability to tackle social exclusion than government.

He said everyone had their own responsibility to make their lives a success.

"The purpose of society is to empower the individual - to enable them to fulfil not just their economic potential but their potential as citizens. This is a contract between us all - based on mutual responsibility," said Blair.

The prime minister denied that this approach meant that government had no role to play.

"When we say that everyone able to do so has a clear responsibility to find a job and look after the family we don't therefore say that government has no role," he said.

Blair stressed that Labour was delivering in areas such as child poverty and education but admitted "we have so much more to do to live up to our values".

He repeated his view that marriage remained an important aspect of the welfare of children.

"The government's primary concern is with the stability of relationships where children are involved and we recognise that this stability is most easily found within marriage," Blair said.

A second term Labour government aims to use new bodies to deliver change in employment and education, particularly in relation to urban regeneration, claiming that traditional government departments and the private sector have failed to deliver.

Blair argues that the network of faith and community groups could be used to push forward the planned changes and highlighted church schools "as a true partnership between the churches and government".

"It is misguided and outdated to suggest there is a straight choice between voluntary activity and state activity. The two should go together," he said.

Blair set out plans for a new body to promote the voluntary work of the over-50s. Experience Corps, to be chaired by Labour peer Sally Greengross, will be given £19 million of state cash to "create and fill new volunteering opportunities".