MERSEYRAIL joint operator Serco has clinched three new deals with the Government, worth up to £500m.

The international services provider will deliver the Government’s Flexible New Deal initiative to support jobseekers in returning to and remaining in work.

Serco was appointed by the Department for Work and Pensions and will oversee the initiatives in three regions covering North, Mid and South East Wales, the West Midlands and Greater Manchester for a five-year period.

The value of the contracts depend on the number of jobseekers involved in the scheme, but Serco believes the Welsh and West Midlands contracts could each be worth up to £125m, while the Greater Manchester deal could yield up to £250m over the contract period.

All the contracts will start from next month, and Serco says it will deliver them through a “unique network of successful, established providers who will be remunerated on a similar basis.”

Christopher Hyman, Serco chief executive, said: “We are delighted to have signed these contracts to deliver innovative new welfare to work services and to assist individuals in developing new skills and returning to work.

“This is a significant new market for Serco and we see further opportunities to apply our approach to additional contracts under the Flexible New Deal and to other areas of benefit provision, both in the UK and overseas.”

Serco operates the Merseyrail network in a 50-50 joint venture with Netherlands-based Dutch Railways.

The group also operates the Northern Rail franchise with its Dutch partner.

Last week, Serco announced a 32.8% increase in half year pre-tax profits to £83.4m, on a 30.8% hike on turnover of £1.95bn.