David James is a crisis manager

The proposal is part of plans to save �2bn at the Department of Work and Pensions in what the Tories say are efficiency savings.

They would also contract out work done by Jobcentre Plus which the Tories say would lead to �1.2bn in savings.

But there would be no compulsory redundancies, the party said.

The Conservatives say they would contract out the work of the country's job centres which would lead to nearly 80,000 jobs being transferred out of the public sector.

James review

Ending an early retirement scheme through which some staff get a better than standard terms would save an estimated �17m, the Tories claim.

They also hope to save �666m a year by abolishing the New Deal schemes.

The party has yet to announce an alternative job scheme but say they have set aside �286m for this purpose.

The raft of proposals were drawn up by the former Dome chief David James in his review of public service efficiency.

The plans were unveiled before party workers gather in Bournemouth for the Conservative annual conference.