Housing minister Caroline Flint has announced a £200,000 initiative to encourage homeless charities to employ people who used to sleep rough.
The government hopes to encourage about 800 people to find work in the sector within the next two years.
The plan will focus on the 46 largest homeless organisations, before moving on to smaller charities across England.
The money will be used to help the charities set up training courses in areas such as IT, finance and client counselling.
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 Department for Communities and Local Government said the number of rough sleepers is 483 on any given night, down from 1,850 in 1998.
The announcement came shortly after the Conservatives released figures showing that the number of people in England who find themselves homeless after being discharged from hospital has jumped 53 per cent in five years.
According to research for the party, 6,204 people were recorded as having no fixed abode on discharge from hospital in 2007, up from 4,048 in 2003.
The figures, based on freedom of information requests, show the number of patients of no fixed abode admitted to hospital also rose by 42 per cent over the same period.
Shadow housing minister Grant Shapps, who compiled the report, said: "These figures reveal how homelessness and healthcare are inextricably linked and how easily a vicious circle can develop for those who are discharged from hospital onto our streets.
"It's evidence that government policy is failing the most vulnerable in our society and much more needs to be done to link up those patients who are discharged into homelessness."
