(10 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
With permission, Mr Speaker, I would like to make a statement on Remploy.
Today’s announcement by Remploy means that jobs for approximately 70%—515—of the disabled employees in the remaining Remploy factories and CCTV sites could be saved through the commercial process. The sites and businesses are subject to final negotiations with preferred bidders looking to take over the businesses. Hon. Members will agree that our first concern must be Remploy employees, and they have been informed of the latest decisions by the Remploy board today. There are now 234 disabled people at risk of redundancy and they will take part in individual consultations with Remploy. All employees affected will be supported by the £8 million tailored package of support to help them move into mainstream work.
If I may remind the House, the Government announced in March 2012 that we would implement the recommendations of the Sayce review to withdraw funding from Remploy factories and redirect it to enable more disabled people to get jobs in the labour market. We have always made it clear that this is about supporting individuals in factories and disabled people across the country. As it stood, Remploy factories were losing £50 million—a sixth of the specialist disability employment budget. That money was not going to people but to failing factories, and that cannot be right. As announced in the spending review, the Government have confirmed £350 million to support disabled people to move into, remain in or progress in work.
On 6 December 2012, I tabled a written statement to inform the House that the Remploy board had commenced stage two of its commercial process. The aim was to transfer the remaining seven businesses in 18 factories and the 27 CCTV contracts, potentially affecting 1,016 employees. The Remploy board identified three businesses as potentially viable and appointed KPMG, as a professional agent, to manage the sale of the CCTV, furniture and automotive businesses. Of the 27 CCTV contracts, 17 are subject to the commercial process. KPMG, appointed by Remploy, is currently working through that process, which it hopes to complete shortly. I am pleased to be able to tell the House that eight of the remaining 10 contracts have either been taken back in-house by the local authorities or moved to alternative service providers. This means that approximately 50 employees will be, or have been, transferred to new employers. However, it is likely that the remaining two contracts will be terminated. I can also confirm that in addition to CCTV, the furniture businesses based in Port Talbot, Sheffield and Blackburn will remain in the commercial process.
I confirm that Remploy has received a number of good-quality innovative bids for its automotive business. In the next few weeks, KPMG will continue commercial discussions with a number of bidders who have expressed an interest in acquiring the whole business, which has 217 employees, including 179 disabled people based in the sites in Birmingham, Coventry and Derby. KPMG aims to have identified a preferred bidder in a matter of weeks. I will provide further written updates on progress when details become available. I can also confirm that offers have been received for the E-Cycle business, which has factories based at Porth and Heywood. I am pleased to say that the E-Cycle business will remain in the commercial process, as Remploy begins to work with the preferred bidder, with the aim of completing the business sale in mid-August.
Following independent and expert advice, Remploy has carefully considered best and final offers received for the three other businesses: Frontline textiles, Marine textiles and packaging. Remploy, together with an independent panel of experts including KPMG, has assessed the viability of these best and final offers against a series of published criteria, including the continued employment of disabled people, value for money and the sustainability of the businesses. Our priority throughout the process has been to safeguard jobs, which is why we have offered a wage subsidy of up to £6,400 for disabled employees to encourage interested parties to come forward.
Despite considerable interest in the Marine and Frontline textile businesses at Leven, Cowdenbeath, Stirling, Dundee and Clydebank, Remploy did not receive a best and final offer for these businesses as part of the commercial process. Additionally, there are no viable bids for the packaging businesses based at Norwich, Portsmouth, Burnley and Sunderland. These sites will now move to closure. In line with the Remploy redundancy procedures, all 284 employees at the packaging, Frontline and Marine textile businesses, including 234 disabled employees, will be invited to individual consultation meetings over the next 30 days to discuss the options and the support that will be available to them.
Our experience with stage 1 shows that businesses such as textiles that did not have commercial interest and closed afterwards reopened as social enterprises or new businesses. In fact, nine sites have been sold on that basis. This has resulted in employment opportunities for the original employees. For example, businesses have opened under new ownership in Bolton and Wigan, and at similar factories, which are looking to create 35 jobs for disabled people, including former Remploy employees. In addition, Remploy has already confirmed that it has received an asset bid from a social enterprise organisation for the purchase of assets of the textiles business. This may create potential job opportunities for those disabled people.
We have put in place a people help and support package for all disabled employees to provide a comprehensive range of support for all disabled individuals made redundant as a result of Remploy factory closures. This tailored support is available for individuals to access for up to 18 months after their factory closes and includes access to a personal caseworker and a personal budget to help individuals with future choices. I can confirm that the personal caseworkers have already begun engaging with employees on stage 2 Remploy sites. This has provided an important opportunity to give individuals currently at risk of redundancy the information they need about their opportunities moving forward. We will continue to do everything we can do in finding them work.
We have also built into the package a community support fund to provide grants to local voluntary sector and user-led organisations to run social job club projects to support disabled people and their families. Some 32 organisations have already been awarded funding, supporting 748 ex-Remploy employees locally. There has been welcome success during stage 1 in terms of the number of disabled former Remploy staff who have found alternative employment. We have every expectation that job outcomes from stage 2 will be similar. As at 28 June, 400 of the 1,103 disabled former Remploy workers who chose to work with us are currently in work and a further 328 are working with Work Choice to undertake other training activities.
In closing, let me confirm that the factories going forward in the commercial process are the CCTV contract, the furniture businesses in Port Talbot, Sheffield and Blackburn, the automotive sites in Birmingham, Coventry and Derby, and the E-Cycle business in Porth and Heywood. Those that will be closing are the Marine and Frontline textile businesses in Leven, Cowdenbeath, Stirling, Dundee and Clydebank, and the packaging businesses in Norwich, Portsmouth, Burnley and Sunderland. I have written to all affected MPs and parliamentarians, inviting them to a briefing session today at 4.30 pm in Room S, Portcullis House. I commend this statement to the House.
Mrs Anne McGuire (Stirling) (Lab)
I thank the Minister for her statement, and for giving us advance warning of it just after 9 o’clock this morning. If there were a league table for the way in which Departments advise us of ministerial statements, hers would certainly be ahead of the Ministry of Defence.
Given the great interest in Remploy, will the Minister tell us what efforts were made to inform Members with a Remploy factory in their constituency that their factory was due to close? I understand that a letter went out at 11.40 this morning, just one minute before she stood up to make her statement—
Philip Davies (Shipley) (Con)
What did you do when you closed Remploy factories—
Mrs McGuire
Thank you, Mr Deputy Speaker. I am sorry; I might have touched a nerve.
I also wonder, given the way in which the House works, whether the Minister had given Members advance warning of her briefing at 4.30 this afternoon.
I shall turn now to the substance of the review. The Minister often cites the Sayce review, as did her predecessor, as protection for her decisions. I would remind the House, however, that the Sayce review did not recommend the speedy closure of the Remploy factories in the way that the Government have progressed it. Indeed, it recommended a phased development of the process. Once again, however, the review has been brought into play. The Government’s aim has always been to get rid of the Remploy liability in this financial year, and no matter what else was said, this was always going to be the cut-off point. That has been confirmed this morning. Of course I welcome the fact that viable bids have been received for some of the factories and that 17 of the 27 CCTV businesses are in the commercial process. I also welcome the Minister’s comment that it appears that eight of the other 10 will continue in one form or another.
The textile division based in Scotland has a long and proud tradition of making security and chemical protection wear for the Ministry of Defence, and the disappearance of the skills built up over many years will be a great loss. The textile division recently lost a major MOD contract that it was eminently capable of carrying out, given the quality and timeliness of its work. Given that the factories are under pressure of closure, will the Minister tell us whether she or any of her officials had any engagement with MOD procurement officials to encourage them to use Remploy as a supplier, given that it had carried out the work successfully over many years? It has never been properly recognised that much of the kit worn by our service personnel in Afghanistan and Iraq was made in Remploy factories. Did the Minister use her good offices to encourage the MOD to award that contract to Remploy, if necessary using article 19?
Will the Minister also explain what she meant when she said that there was an asset bid from a social enterprise company for the textile section? What opportunities does she believe that that bid will open up? Many of us on the Opposition Benches see the words “asset bid” and worry that they might really mean asset stripping. We need to know exactly what is involved.
I also want to ask the Minister to define the word “success”, which she used in the closing paragraph of her statement. She mentioned that about 1,100 former Remploy workers were choosing to work with personal caseworkers to find other jobs. In other words, they are not currently in employment. Another 400 are in work and another 300 are in training, so by my calculation, significantly less than 50% of the former Remploy workers who have already been made redundant are currently in employment. I am wondering what the Minister’s benchmark for success is.
Given that the Work programme is performing three times worse than doing nothing for disabled people—
Mrs McGuire
The Secretary of State keeps saying “rubbish”, but he needs to listen—[Interruption.] I did not realise that the Minister had brought along—[Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I am sure that we need to hear both sides. I was happy to hear the Minister and will certainly be happy to hear and wish to hear the shadow Minister. Interruptions are not helpful.
Mrs McGuire
Thank you, Mr Deputy Speaker. If the Secretary of State wants to say something, he should make his own statements and not heckle.
Given that the Work programme—[Interruption.] This is ridiculous, Mr Deputy Speaker, frankly. Given that the Work programme is not performing for disabled people, can the Minister say how the former Remploy workers are going to be supported in their quest for employment?
Finally, if the Minister looks at the areas where the Remploy closures are happening, she will find that there are unemployment rates of 7.5%, 8.2%, 8.1%, 7.4% and 7.9%—nearly double the national average—in the majority of cases. Does she really think that the closure of these factories today is an indication that she is really there to support disabled workers?
Esther McVey
I am led to believe that the etiquette of the House is to come here first to give a statement, which is entirely what I did. I believe, too, that this is a working parliamentary day—a full working day—so all the processes we undertook were carried out to the best possible standard. People were informed through a correct process and in the correct way. I am glad that we can put that on the record.
Moving forward, what this was all about was supporting disabled people. We had a situation in which £50 million—a sixth of the entire budget—was not supporting individuals, but going into failing factories. We cannot allow that to be case. We have therefore made sure that we support those individuals. There are 8,500 disabled people in the constituency of the right hon. Member for Stirling (Mrs McGuire), but only 29 of them, along with two non-disabled people, were employed at Remploy, making a total of 31 people. The Remploy factory in her constituency turned over £71,000 a year, but actually lost £439,000 a year.
I have faith in Remploy employment services to be able to find those people jobs. Since 2010, Remploy employment services have found a job for 109 people with the same disabilities. That is 109 in two years, while there are only 29 disabled people at this factory. Those are the statistics for the right hon. Lady’s constituency, and they are the same for many others.
I did indeed look into the MOD contracts. There are various criteria, which have to be adhered to—the cost to taxpayers, for example, and various others—and I also looked at article 19. It was put in place, which meant that Remploy factories could be considered, but article 19 also says that offers have to be viable and value for money, which was not the case.
On the asset bid, I said that no best and final offer came forward, although there were expressions of interest in the Marine and Frontline textiles businesses. An asset bid, however, has now come forward from a social enterprise, so we have faith that this can move forward. Our criteria for the bid involve, first of all, the employment of disabled people.
Let me add, to put the right hon. Lady’s mind at rest, that following the submission of assets bids during stage 1, the factories in Wigan, Wrexham, Oldham, north London, Motherwell, Bridgend, Bolton and Birkenhead have reopened.
I described as a success, and warmly welcomed, the process during stage 1 which led to 400 people obtaining jobs and 328 being involved in some form of training, because that has happened at a faster rate than has been the case following any other regular redundancy. Furthermore, nine factories have reopened.
I have read the written statement made by the right hon. Lady in November 2007, and the report of the oral statement made during the same month by the right hon. Member for Neath (Mr Hain). At that time, everyone was looking for a way of making the factories work. The Labour Government put in more than half a billion for modernisation, but that did not work. They looked into whether an increase in public sector procurement was possible, but it proved not to be, following an overestimate of 130%.
The right hon. Lady also forgot to mention that she had closed 29 factories in 2008. In that instance, 1,637 people were not tracked, and did not benefit from an investment of £8 million and the provision of personal caseworkers. We have done all those things. I have met ex-Remploy workers. I went to Talit’s house in Oldham, and asked him what he wanted, and I met Chris from Burnley here at the House of Commons. We helped to reshape the whole package with the help of those people.
We have done a great deal, and, although there is more to do, I am proud of what we have done.
Nigel Mills (Amber Valley) (Con)
Does my hon. Friend agree that at a time when there are 6.9 million disabled people of working age in the United Kingdom, we need to find a better way of using the budget that is available, rather than supporting loss-making factories which employ only a tiny fraction of those people?
Esther McVey
I entirely agree. We must proceed with care and consideration, and we must also listen to the views of disability groups, advisers and experts, all of whom say that they would like to see more disabled people in mainstream work. That is what we must do: provide proper, sustainable, full-time jobs.
Dame Anne Begg (Aberdeen South) (Lab)
Today’s announcement will not affect the Remploy factory in Aberdeen, because it has already closed, although a social enterprise has been running the textiles business very successfully, which suggests that the factory had the potential to be more successful than the Minister has suggested. However, the social enterprise was formed by the more able workers, and those who have remained unemployed are the most disabled. Do the Government think that there is still a need for sheltered workplaces in this country?
Esther McVey
I agree with what the hon. Lady has said about what happened in Aberdeen. People have come together, and some of the workers involved have made progress. However, the most severely disabled need to be helped into work and supported while they are there. We have therefore announced a £350 million strategy, on which we shall be working over the summer. Moreover, in July we shall be launching a two-year awareness campaign at an employment conference, bringing together employers, employees and disabled entrepreneurs
John Hemming (Birmingham, Yardley) (LD)
As the Minister knows, a social enterprise bid has been submitted for factories in Coventry, Birmingham and Derby. It has received considerable public support, including from me. It is well financed and well advised, and above all it is inclusive. Can the Minister suggest a way of ensuring that it succeeds?
Esther McVey
At present, that bid is still part of the commercial process. There have been several significant bids for the automotive industry. KPMG is currently working on the process with Remploy. We must ensure that the best bid is successful, so that there are jobs now and there will be jobs in the future for those disabled people.
Derek Twigg (Halton) (Lab)
On Monday, I asked the Minister how many disabled people stayed in a job after 12 months. She said:
“Of the nearly 13,000 people who have started on Work Choice, a third—30%—have stayed in work.”—[Official Report, 1 July 2013; Vol. 565, c. 595.]
Given that many disabled people have been employed for 12 months, has she assessed why 70% of them are not staying in work long term?
Esther McVey
The hon. Gentleman makes a good point. We are looking at that, at what we can do and at the best way forward. That is why we have a brand new, two-year specialist disability employment strategy, which will start later in July, to see what is the best support we can give to those people.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
Could my hon. Friend confirm for people in Norwich what kind of support package they will have? She mentioned something about access to personal budgets and similar support.
Esther McVey
My hon. Friend asks a good question: what support do we offer and how do we provide that support? It is tailored to what the person needs, whether it is help with CVs or extra training, or support into the workplace. Therefore, it is dictated not by me but by the person who is coming forward who needs that help.
Ian Lucas (Wrexham) (Lab)
The Minister referred to the Wrexham site. She should claim no credit whatever in respect of Wrexham. It was she and Remploy who made the decision not to allow the business to continue there, and it has now moved to an alternative site. The factory remains closed and empty. When the Government asset-strip the Wrexham site, what will they do with the proceeds from the sale of the land?
Esther McVey
I am sure that the hon. Gentleman will be pleased to know that the Wrexham site is being sold with a view to making 10 to 20 jobs available for some of the ex-Remploy staff. That is the reality, which is far from the picture he is painting.
Philip Davies (Shipley) (Con)
The Minister will be aware that I have always been and remain opposed to the closure of the Remploy factories, but given the amnesia among those on the Opposition Benches, may I remind her that when the last Labour Government closed the Remploy factory in Bradford, they gave next to no support to the workers there and did not even monitor whether they found a job? Does she agree that that was totally unacceptable and that what is most important is that we do everything to find these people, who want and deserve to work, a job? The Government have a duty to help them as much as they can.
Esther McVey
My hon. Friend raises many key points, which are correct. Stages 1 and 2 were so difficult because there was no blueprint in 2008, and those people were not supported, tracked or monitored. It was shameful of Labour not to do that.
Mr Frank Roy (Motherwell and Wishaw) (Lab)
I do not understand why the Minister is misleading the House by saying that the Motherwell factory has opened. It absolutely has not. A year after the factory closed, many of the workers still do not have a job. There is no guarantee that when that factory is eventually opened by someone else any ex-Remploy worker will get a job there.
Esther McVey
I read out the names of the factories, including Bolton. It is anticipated that up to 10 employment opportunities for disabled people will result as social enterprises come forward. The hon. Gentleman is right: the factory may not be open at this moment but it is going through the process of opening, so considerable work is being done. That is why I can say that that has happened and is happening—we have been dealing with it for two years, knowing that it is happening.
Henry Smith (Crawley) (Con)
Does my hon. Friend agree that work programmes for the disabled should be efficient but, most important, they should be effective?
Esther McVey
My hon. Friend is correct. They have to be effective—that is what everybody wants—but the answer is more complex than that, because they have to be tailor-made and we have to look at the individual. So, yes, they must be efficient, but first and foremost they must be effective, caring and tailored to the individual.
Mr Peter Hain (Neath) (Lab)
But is not the truth that amid all the Minister’s spin and management-speak, she is strangling Remploy to death, and there is no prospect of the most vulnerable disabled workers in their 50s who work there all the time getting jobs in mainstream employment? By the way, her description of the 2008 programme is a total travesty. There was a £550 million subsidy for that, which she has cut savagely, and there was a programme for getting people into mainstream work, too. Also, she has given no guarantees, despite my asking the Secretary of State, and nor has the preferred bidder, who is based in Yorkshire, that the Neath Port Talbot site at Baglan will remain open. Can she give a guarantee on that now?
Esther McVey
I have a couple of points to make to the right hon. Gentleman. There was no spin in what I said; those were the numbers, and he is more than welcome to verify them. As for his comment about strangling, that is incorrect, too. I would say “liberating”. That is why some of the factories that closed have reopened and we are supporting them as best we can. If I were him, I would claim no credit for spending £555 million in 2008 on a modernisation process that went nowhere, or for estimates for contracts in the public sector that were grossly exaggerated—by 130%—and which never came to pass. Ours are real, they have been justified, they are monitored by an expert panel and KPMG is involved as well.
Mr Philip Hollobone (Kettering) (Con)
To put today’s statement in context, is it not fair to say that over the past three years Remploy employment services has found employment for 35,000 disabled and disadvantaged people, many of whom have similar disabilities to those employed in the factories?
Esther McVey
My hon. Friend makes a very good point. That is exactly what it has been doing. It has found people jobs in mainstream work at a fraction of the cost. It can do it, we know we can do it, and that is what we are going to do.
Mr Jim Cunningham (Coventry South) (Lab)
As far as I am concerned, Remploy was one strand of social services to help people with disabilities and give them dignity. More specifically, however, what is the Minister going to do to help Remploy in Coventry to develop a social enterprise there? It is facing problems with the acquisition of the land. Will she meet me, along with one or two of my colleagues, to discuss that?
Esther McVey
I will indeed meet the hon. Gentleman to discuss that. I should add that that is one of the automotive businesses, and it has attracted considerable interest because it is a viable business. KPMG is currently working on that with Remploy, and I will table a written statement shortly about what will happen there. The hon. Gentleman is right, however, that this is about dignity and supporting disabled people, and that is what we are doing.
Sir Tony Baldry (Banbury) (Con)
Following on from the comments of the Chair of the Work and Pensions Committee, the hon. Member for Aberdeen South (Dame Anne Begg), many of us are interested in the details of the Government’s national strategy for helping disabled people back into the world of work, whether through Jobcentre Plus, social enterprise, or supporting job clubs. My hon. Friend has talked about work that will be done in the summer, so will she give an undertaking to come back to the House when Parliament returns in September or October to update us on the national strategy, because all of us have disabled people in our constituencies who want to get back into the world of work, and we are keen to understand how we can engage with them and the Government to make sure they do so.
Esther McVey
I will indeed come back to the House to speak about our national employment strategy; that is only fair and correct. We have been working on it for some time. We have been analysing the Work Choice and Work programme figures and looking at other social support, such as job clubs, and we have developed for the first time ever this community support fund and opened 32 different sites across the country helping almost 750 disabled people.
Diana Johnson (Kingston upon Hull North) (Lab)
The disabilities Minister has talked a lot about opportunities and moving forward, so is she satisfied that in Hull in the first year of the Work programme only 10 people with disabilities were found work? Is that acceptable?
Esther McVey
As the hon. Lady says, we are working on the Work programme and taking huge strides forward, and I am looking at the specialist disability support such as Work Choice and how to reshape it to make it even better.
Greg Mulholland (Leeds North West) (LD)
In the last Parliament we on the Work and Pensions Committee looked at the Labour Government’s decision to close a number of Remploy factories, and I have to say that the collective amnesia of Labour Members, which was most ably demonstrated by the right hon. Member for Neath (Mr Hain), who oversaw the closure of Remploy factories in Wales when he was Welsh Secretary, is extraordinary. The people concerned is what is important here, however, so can my hon. Friend the Minister give us a sense of the additional disabled people who could be helped into work as a result of these changes?
Esther McVey
My hon. Friend asks a very good question: how many more people can be helped into work, and into mainstream work? That is what we are doing. We now have £350 million to do that. We have got to look at what works, get value for money and support as many people as possible.
Thomas Docherty (Dunfermline and West Fife) (Lab)
First, may I echo the positive message from my right hon. Friend the Member for Stirling (Mrs McGuire) about the advance notice given? That certainly compares very favourably with the MOD. On Cowdenbeath Remploy, there will be great disappointment in my constituency and that of my hon. Friend the Member for Glenrothes (Lindsay Roy), and the Minister knows the excellent work done by us and my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown). Will she meet the three of us as soon as possible to discuss what the options are for the two factories in Fife?
Esther McVey
I will indeed. I have met the hon. Gentleman and his colleagues as a collective group in the past, and I will certainly do so again.
George Eustice (Camborne and Redruth) (Con)
One of the barriers to disabled people going into mainstream employment is a misconception among employers that it will somehow cause them difficulty, although the evidence shows that the employers who overcome their apprehension often find that the disabled person compensates for their disability by having much greater ability in other respects and therefore becomes a very valued member of their team. What more can be done to educate employers and persuade them to give disabled people a chance?
Esther McVey
My hon. Friend makes a terrific point. This is all about awareness, and it is important to understand that only 3% of people are born with disabilities but most of us will acquire one during our life, probably in our 40s and 50s, so we have to do what we can because we all have a vested interest. On my hon. Friend’s specific point, we will be holding a disability employment event in July, bringing together some of the biggest employers locally, nationally and internationally to ask them, “What are you doing, how do we spread best practice, and what can we do to support you?”
Nick Smith (Blaenau Gwent) (Lab)
How many employees at Remploy in Abertillery, closed last year, have now got jobs? Unfortunately, as of December, just three out of 21 had jobs.
Esther McVey
The hon. Gentleman is quite right. There were 35, actually, in December who had a job, and because of that we completely reshaped the process, so now, he will be pleased to know, 400 people have a job, 328 are in training, and that is out of the 1,100 who came forward for support.
Mr Peter Bone (Wellingborough) (Con)
May I thank the Minister for coming to the House and the Secretary of State for being present? May I also thank the Minister for the way this statement has been presented to the House, with the ministerial briefing that will be given to colleagues later and the fact that she took the time to write to Members who were affected by this? That is the way a statement should be handled, and she should be congratulated—and I am afraid I must say that the speech by the right hon. Member for Stirling (Mrs McGuire), who spoke for the Opposition, was one of the worst I have ever heard.
Esther McVey
I do not know what to say to that, but I think I might even be blushing. Thank you.
Kerry McCarthy (Bristol East) (Lab)
The Government spent £248 million less than anticipated on the Work programme in 2012-13, owing to provider under- performance under payment by results. In view of the disappointing figures about the number of ex-Remploy workers who have managed to find re-employment, can this underspend be used to extend proven alternative programmes for disadvantaged jobseekers, like the Work Choice programme for disabled people and Access to Work, which helps them cope with some of the obstacles they might face in the workplace?
Esther McVey
I am not sure that the hon. Lady has been listening. These are not disappointing figures; they are better than those for most other redundancies—that is how fast these people are getting into employment. We have given personal support. People are going on Work Choice and getting the tailored support they need, and we are doing this for 18 months.
Andrew Bridgen (North West Leicestershire) (Con)
Does my hon. Friend recall a fantastic Marks & Start event she attended in my constituency last year, where not only were more than 1,000 newly created jobs announced, but 200 of them were reserved for people with disabilities? Does she agree that that is an excellent model of how to help those with disabilities into sustainable employment?
Esther McVey
I do indeed remember being at Castle Donington with my hon. Friend at the Marks & Start site. This was a distribution centre looking for 1,000 employees, many of them disabled. He, like me, will be pleased to know that it is ahead of its target and is getting more disabled people into work there.
Steve McCabe (Birmingham, Selly Oak) (Lab)
In terms of helping people with their future choices, will the Minister give the House a commitment that she will continue to track the fortunes of these people? Will she regularly update us on how many find themselves in full-time work and how many end up in part-time, temporary or unpaid work?
Esther McVey
I will indeed, and I keep abreast of the figures on a weekly basis. That figure of 400 who have got a job did not include people who were on fewer than 16 hours, so more than that number are in work on fewer hours.
Mr David Nuttall (Bury North) (Con)
Will my hon. Friend confirm that the specialist disability employment budget has been protected in the latest spending round? Consequently, it is all the more important that this money is used to help as many disabled people as possible back into work, as opposed to spending such a large sum on a small number of loss-making factories.
Esther McVey
My hon. Friend makes a good point. Yes, that budget was protected in the spending review and we have committed to £350 million to support disabled people into work. That money has got to be best spent on people—not on failing businesses—to support them into work.
Mr William Bain (Glasgow North East) (Lab)
The loss of a further five Remploy factories in Scotland will be a devastating blow to disabled people in Scotland. Does the Minister not accept that, with the National Audit Office now conducting an inquiry into the shambles of a tendering process at the Springburn factory in my constituency, with growing evidence of asset-stripping and of confidential contracts signed on this Government’s watch between Remploy and private companies, this Government have sold the jobs of disabled people down the river?
Esther McVey
I ask the hon. Gentleman to be very cautious with the words he throws around the Chamber, many of which are inaccurate. He is correct to say that more information has gone to the NAO about the health care business and the commercial process that was undertaken, but the NAO will then just be considering whether it wants to take this further and look further into the programme. There has been no asset-stripping. There has been full governance and procedure in this commercial process, undertaken by an independent panel and by KPMG. Remploy is a legal entity in its own right and it is the legal steward of what goes forward. I warn the hon. Gentleman to be very careful with his accusations.
Charlie Elphicke (Dover) (Con)
If nothing had been done and Remploy had continued to suck up resources, what would the impact have been on other programmes to help disabled people back into mainstream work and on the inclusion agenda?
Esther McVey
We have to look at what disabled people want to do now, and they have said clearly that they want to be a part of mainstream society. They want to be in mainstream jobs and they are looking towards their goals and aspirations. We are helping them with that, be it as part of the alliance, as part of disabled people’s user-led organisations, as part of the role models programme or, as I said, as part of our new disability employment strategy.
Julie Hilling (Bolton West) (Lab)
Does the hon. Lady have any guarantees that the companies that will be taking over the Remploy businesses will continue to focus on employing disabled people in the future?
Esther McVey
Let us examine how the bids were looked at and what the key criteria were for being taken forward and selected as the preferred bidder. The No. 1 criterion, goal and aim was the employment of disabled people. After that came viability, sustainability and value for the taxpayer, so employing disabled people was first and foremost at the heart of these commercial processes.
Bob Stewart (Beckenham) (Con)
Roughly what percentage of Remploy employees are disabled ex-service personnel?
Esther McVey
I will have to get back to my hon. Friend on that. I do not know who were ex-service personnel, because now all types of disabled people, from all different backgrounds, are working there. However, I know that our key aim is to help all disabled people into mainstream work.