Remploy : I state the obvious facts

So yesterday (March 7th, 2012) Maria Miller MP - the Minister for Disability's announced the news that she and the UK's Government would be closing most of it's #remploy factory's. But did you know that, this is old news and has been on the cards since December 2011.. it's just that Maria Miller MP and the Department for Work and Pensions, didn't want you to know about it (or read it) !

After reading about the "Remploy news" (thanks to the BBC, The Guardian and other sources), I did a search online today, using Google and used/typed these keywords:

maria miller remploy management

The search results, found me a document on Parliament's website (it's the 4th or 5th listing down in the search results).

This REMPLOY news, was reported by Parliament in December 2011.

You can find (and download) the Briefing report, in the Parliament library here:

www.parliament.uk/briefing-papers/SN00698.pdf

HERE'S THE TEXT IN FULL BELOW - if you cannot download the PDF file.

The 1st paragraph on the 2nd page states:
Remploy is a Non-Departmental Public Body of the Department for Work and Pensions (DWP) and a public corporation. It operates as a commercial company and is funded through revenue generated from its commercial activities and grant-in-aid from government (£116.8 million in 2010/11). The Minister responsible for Remploy is Maria Miller, the Minster for Disabled People at the DWP.
Notice it states, that:
The Minister responsible for Remploy is Maria Miller, the Minster for Disabled People at the DWP
Well well, so we now know who to blame! and she's hidden this for quite a while too. She has a lot to answer for. Let's get this word out to the press, and to the many who this effects.

It's the Department for Work And Pensions who are closing down Remploy... it's because "they own it , and need to make more cuts..".

Shameful, I say...

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[Updates will be posted in this area..]

Since writing this post, I've dugg around a bit more, and found these "interesting" reports in to Remploy - these are also well worth a read.

1. Minister Maria Miller MP has confirmed in Parliament that RADAR had been paid to do the report..

visit this link >> http://www.remployworkers.info/messageboard.html

2. Ann Clwyd, Labour MP for Cynon Valley, moved a debate in Westminster Hall on Thursday 15 December 2011, on the subject of Remploy.

visit this link >> http://www.parliament.uk/business/news/2011/december/mps-debate-remploy/

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READ THIS POST BELOW !
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Remploy
Standard Note: SN00698
Last updated: 13 December 2011
Author: Daniel Harari
Section: Economic Policy and Statistics 

Remploy offers support to disabled people through its two business arms. It has 54 factories employing over 2,400 disabled people which produce a range of products such as school furniture. Remploy also provides employment support to disabled people seeking work in mainstream companies.


Remploy is funded through revenue generated from its commercial activities and grant-in-aid from government (£116.8 million in 2010/11). Despite undertaking a five-year modernisation plan from 2008, weak economic conditions and cheaper global competition mean Remploy continues to make losses.


A Government commissioned review of specialist disability employment programmes, the Sayce report, was published in June2011. The report recommends that government subsidies to Remploy should cease by 2014/15. The Government has yet to decide on its future strategy for disability employment programmes.


This information is provided to Members of Parliament in support of their parliamentary duties and is not intended to address the specific circumstances of any particular individual. It should not be relied upon as being up to date; the law or policies may have changed since it was last updated; and it should not be relied upon as legal or professional advice or as a substitute for it. A suitably qualified professional should be consulted if specific advice or information is required.


Please note:
This information is provided subject to our general terms and conditions which are available online or may be provided on request in hard copy. Authors are available to discuss the content of this briefing with Members and their staff, but not with the general public.


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1 Overview of Remploy and its businesses


1.1 Background
Remploy is a Non-Departmental Public Body of the Department for Work and Pensions (DWP) and a public corporation. It operates as a commercial company and is funded through revenue generated from its commercial activities and grant-in-aid from government (£116.8 million in 2010/11). 


The Minister responsible for Remploy is Maria Miller, the Minster for Disabled People at the DWP.


Remploy was established in 1945 under the Disabled Persons (Employment) Act 1944, and was originally called the Disabled Persons Employment Corporation. It took its current name in 1946. Remploy initially provided employment opportunities in factories around the country to disabled ex-miners and soldiers returning from the Second World War.


Many of these factories, known officially as Remploy Enterprise Businesses, continue to produce a wide range of products such as school furniture, motor components and chemical, biological and nuclear protection suits for police and military. Remploy currently employs more than 2,400 disabled people in its 54 factories.


Remploy also provides employment support to disabled people seeking work in mainstream companies alongside non-disabled people through Remploy Employment Services. RES has 64 branches in city and town centres around the UK. Through these branches, disabled people seeking work are given face-to-face advice and support.


Increasingly, the organisation is focusing its efforts on this side of its business. In 2010/11 Remploy found over 20,000 jobs in mainstream employment for disabled people, up from 10,600 in 2009/10.


Remploy failed in its bid to become a prime contractor of the Work Programme, the Government’s main welfare-to-work scheme, although it is a sub-contractor in some parts of the country giving specialist support for disabled people.


1.2 Modernisation plan 2008-2013


Remploy is currently undergoing a modernisation programme, which was initiated by the then Secretary of State for the DWP, Peter Hain, in November 2007. Mr Hain’s statement in the House of Commons on 29 November 2007 set out the rationale behind the modernisation plan, which was supported by a five-year £555 million government subsidy


Low-wage, low-skill competition from countries like China and the EU accession states has put Remploy factories under enormous pressure. In turn, Remploy has failed to move adequately into higher-value, higher-skill work. Losses have spiralled, and Remploy’s ability to support disabled people has been put at risk. Change is therefore essential for Remploy’s 83 factories across the country, and the 5,000 people whom they employ. [...]
The reality is that without modernisation Remploy deficits would obliterate our other programmes to help disabled people into mainstream work. With no change, in five


1 Remploy website, About us: Key facts [accessed 13 December 2011] 2 Remploy website, About us [accessed 13 December 2011]
3 Remploy, Annual report 2010/11, page13
4 ibid. page 5
5 HC Deb 27 Nov 2007, c447-9

years’ time Remploy would require £171 million a year on current trends. That would be £60 million over the £111 million funding envelope[.]


The programme resulted in the closure of 18 factories and the merger of a further 11 factories.6 The number of factories fell from 83 to 54 with the number employed falling from 5,000 to 2,900.7 The plan also called for Remploy to quadruple the number of disabled people it places in mainstream employment (from 5,000 to 20,000). The modernisation plan is scheduled to run until March 2013.


1.3 Voluntary redundancy programme


Remploy has stated that the weak economic environment and cheaper global competition have negatively affected its factories. As a result, Remploy asserts that: “on average, half of our factory employees have little or no work on most days of the week.” In addition, its financial results are worse than provided for by the modernisation plan, with an estimated overspend of £40 million by the end of the plan in Mach 2013.


As a result, Remploy introduced a voluntary redundancy scheme in 2011 which led to 669 applications for it being accepted. No factories will close because of the scheme. Remploy has stated that the voluntary redundancies will help reduce its costs:


Will make a significant contribution to a reduction in overall costs and ensure that more of our employees who remain have fulfilling work.


The GMB trade union, which represents some Remploy staff, disagrees with this stance. It has stated that the voluntary redundancy scheme is, “not the answer to the real problems factory based supported employment in Remploy”. It argues that the structure of Remploy is “top heavy with senior managers” and that “millions of pounds could be saved” by reducing the number of managers and associated costs, such as bonuses.


2 Remploy’s future


2.1 Government’s review of public bodies


In the Cabinet Office’s 2010 report on reform of public bodies (or Quangos), Remploy’s future was determined to be “under consideration”, which meant it was “part of an existing wider review, including the spending review, or under specific consideration as part of public bodies reforms.”11
Further detail was provided in response to a Parliamentary Question (PQ) on the future of Remploy. Maria Miller, the Minister responsible, stated that Remploy will remain part of Government plans to support severely disabled people into work


The review of Remploy Ltd was in connection with its status as a non-departmental public body. In the light of the spending review settlement I can confirm that the budget for Remploy Ltd remains unchanged. Remploy continues to be part of the Government's programme of support to help severely disabled people into work.


6 Remploy press release, “Remploy Modernisation Plan approved by Peter Hain”, 29 Nov 2007 7 HC Deb 19 Nov 2008, c131-3WH
8 Remploy, Annual report 2010/11, page 6
9 ibid.
10 GMB, Evidence submitted to Work & Pensions Cmte for evidence session on Remploy, May 2011, Ev29 11 Cabinet Office, Public bodies reform – proposals for change, page 35 & press release
12 HC Deb, 26 Oct 2010 c195W

The status of Remploy as an NDPB also remains unchanged. I do, however, want to look at how we ensure continued improvements in the service provided by Remploy to disabled people. I will continue to work closely with Remploy and other key stakeholders in order to achieve this.


In January 2011, Maria Miller confirmed that funding for the modernisation plan remained unchanged:


I can confirm that the five-year modernisation plan funding remains protected...despite challenging fiscal conditions.


2.2 Sayce review of specialist disability employment programmes, June 2011


The Government on 2 December 2010 announced an independent review of the support the government provides to disabled people who want to work. The review was conducted by Liz Sayce, chief executive of the disability organisation RADAR, and was published in June 2011.


The report highlights the fact that Remploy factories are not self-sustaining (the 54 factories made a total loss of £63 million in 2009/10; a cost of £22,700 per employee). It states that all 15 factory business sectors, citing evidence provided by Remploy, were loss making in 2009/10.


The report recommends that by 2014/15 unless Remploy businesses (both the employment services side and its factories) can be shown to operate without government subsidy, they should be closed with extensive transitional arrangements in place to support individuals who would as a result lose their jobs.


The report recommends that existing employees should have the opportunity to “develop businesses into independent enterprises, where viable”. This could include social enterprises, mutuals, co-operatives or other structures.


The report believes that other programmes such as Access to Work (which helps disabled people into mainstream jobs) provide better value for money and that the model Remploy factories are based on of “sheltered employment” is “not the model for the 21st century”.


Instead, the central principle of the report is that funding should follow the individual and not the institution.


2.3 Reaction to Sayce review


Unite the union has criticised the Sayce report’s recommendations on Remploy. Unite general secretary Len McCluskey said


This report spells the death knell of Remploy factories – it is a blueprint to run-down and close the factories. The government needs to commit itself to making substantial pump-priming available to guarantee that the plants become successful as businesses in their own right - they won’t succeed without such cash.


13 HC Deb 26 Jan 2011 c389W
14 DWP, Getting in, staying in and getting on: Disability employment support fit for the future, Cm 8081, Report to
Government by Liz Sayce, June 2011
15 The report states that “Audited figures are expected to show this will have risen to around £25,000 for 2010/11.” 16 ibid. p104, table 4.3
17 ibid.p22-3
18 ibid.p100
19 ibid.p105
20 Unite the union press release, “Disability employment report ‘the death knell for Remploy factories’, says Unite”,
9 Jun 2011

The prospect for those who will have to battle it out for mainstream jobs is grim – it is a major blow for them. What will happen is that disabled people will be at the back of the employment queue and when they do succeed in finding work, too often, they are bullied and forced out of work. It is a vicious revolving door.


Unite also predicted that “a political storm is brewing as the coalition has used a charity boss to do its cost-cutting ‘dirty work’”.


In contrast, The Disability Alliance welcomed the Sayce report. In particular it:


...welcome[d] the Review’s focus on ensuring mainstream options for disabled people and a joined-up Government approach to ensuring disabled people can access employment opportunities.


2.4 Government response to Sayce review


Following the publication of the Sayce review, the Government said that it would announce a consultation before making any decisions on the report’s recommendations.23 In response to a PQ, Maria Miller, the Minister for disabled people, confirmed that a consultation period would be provided:


The independent report by Liz Sayce, 'Getting in, staying in and getting on', was published on 9 June 2011. The report contains a range of specific recommendations, including recommendations on Remploy. The Government will issue their response to this report shortly and will consult in full on any recommendations to be taken forward. These consultations will include any individuals or organisations affected by any proposed changes. Further to this, I already have regular dialogue with Remploy management and unions.


On 11 July 2011 the Government published its response to the review and opened a consultation on the report’s recommendations. The consultation document states that:


Government is minded to accept the recommendations of the Sayce Review on Remploy.


The document then proceeds to indicate what would happen if the Government did agree to the recommendations of the Sayce Review on Remploy:


The implication of the recommendations in the Sayce Report is that, if accepted, Remploy in its current form would not exist in the future. The Government will therefore not be able to give undertakings that staff will not be made compulsorily redundant as a result of such changes [...]


The consultation closed in October 2011. The Government is analysing the responses to it before deciding on future strategy for disability employment programmes.


21 ibid.
22 Disability Alliance Press Release, “The Sayce Review: What disabled people need for ‘welfare to work’ to be
effective”, 9 June 2011
23 DWP website, Specialist Disability Employment Support
24 HC Deb 27 June 2011, c600W
25 DWP, “Specialist disability employment programmes: Consultation on the recommendations in Liz Sayce’s
independent review Getting in, staying in and getting on”, Cm 8126, July 2011, page 18 26 ibid. page 19
27 HC Deb 29 Nov c886W

3. Further information
  • DWP, Getting in, staying in and getting on: Disability employment support fit for the future, Cm 8081, Report to Government by Liz Sayce, June 2011
  • DWP, “Specialist disability employment programmes: Consultation on the recommendations in Liz Sayce’s independent review Getting in, staying in and getting on”, Cm 8126, July 2011
  • DWP website’s section on specialist disability employment support
  • DWP website’s section on disability policy
  • The Work & Pensions Select Committee held a one-off evidence session on Remploy on 11 May 2011.
  • EDM 1950 was tabled on 20 June 2011 in support of Remploy and criticising the Sayce review. As of 12 December 2011, it was supported by 49 MPs. 

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