The government has thrown its weight behind Thames Reach’s GROW scheme, which helps formerly homeless people get back into work.
Housing Minister Caroline Flint announced a £200,000 initiative to help around 800 people find work in the homelessness sector over the next two years.
The plan will focus on the 46 biggest homeless organisations before moving on to smaller charities across England.
It will help homeless charities with support to set up training courses including IT, finance and client counseling.
Ms Flint said: "Finding a job after a period of inactivity and without a permanent address can be one of the hardest things for any of us to do and for the homeless this can prove to be a daunting task. I want to see homelessness organisations across the country taking up the challenge and unlocking the skills and talents of people to the benefit of all."
The programme is part of the Government's efforts to cut the numbers of people sleeping rough. The latest figures from the Department for Communities and Local Government indicate the number of rough sleepers is 483 on any given night - down from 1,850 in 1998.
John Crowther of London-based homeless charity Thames Reach said: "The homelessness sector must put its money where its mouth is.
"If we are saying that homeless people shouldn't be left to rot, and that many people have the potential to get back into work, let's lead the way by employing them in our own organisations.
"The business case is clear and we've proved that cost-savings and improvements in quality of service can be made.
"This is more than getting numbers down, this is about raising homeless people's aspirations, showing them first-hand that financial independence, and the opportunities this brings, is achievable.
"Everybody wins from this and no one ends up back on the street."
