Remploy Workers

Wednesday 26th November 2014 Westminster Hall

Motion made, and Question proposed, That the sitting be now adjourned.—(Mr Harper.)

09:30

[Ian Lucas (Wrexham) (Lab)]

I am very pleased to have the opportunity to raise the very important issue, both in Wrexham and across the country, of the re-employment of redundant Remploy workers. Until 2012, we had a Remploy factory in Wrexham. Although the numbers employed at Wrexham Remploy had declined over a number of years, about 43 people worked there by 2012. They were manufacturing, in particular, office furniture, which was then sold.

There had been a previous proposal to close the Remploy factory by the Labour Government in 2008, but there was a very strong local reaction. It was resisted. There were campaigns, marches and a weekly street stall in Wrexham town centre to support our Remploy factory and the Remploy workers. As a result of that hard-fought campaign, in which Councillor David Bithell played a very important part, the decision was reversed and the factory remained open. Effort was put in to securing more work for the factory, and the production of office furniture continued. One of the great lost opportunities was the lack of procurement opportunities in relation to local government and the Ministry of Defence. That has meant that, unfortunately, the factories that were open in 2008 have now largely closed.

When the Government came to power with the agenda of reducing the money spent supporting disabled people, I had fears that the decision would be revisited. It was not long before my fears proved to be justified. In March 2012, the Government announced that they would close the Remploy factory in Wrexham and make the staff redundant.

The Wrexham Remploy factory was a very special place. During the 2008 campaign and, indeed, in the years leading up to it, I had begun to know the Remploy workers in Wrexham very well. Most of them had worked there for many years, and there was a tremendous atmosphere of mutual support. There was no resistance at all to anyone securing employment anywhere else in the mainstream job market, but for particular individuals, there was strong value in working with other people who were disabled and who had challenges in trying to secure work in the mainstream market.

[John McDonnell (Hayes and Harlington) (Lab)]

I apologise because I have to leave the Chamber to chair a meeting. I recall my hon. Friend’s engagement with the Remploy workers, via their trade unions, in his local factory. Can he confirm that, throughout the process, under the last Government and this one, the workers at that factory, through their unions, were willing to engage in any forms of restructuring, were looking at alternative opportunities for income generation in particular, and were willing to engage in a discussion about changing working practices? They were willing to do that all through the period, in a constructive and committed way, in order to ensure not only that the factory remained open, but that it fulfilled its original purposes.

[Ian Lucas]

Indeed. That was very much the case. Such was the commitment to the factory that it seemed to me, certainly in Wrexham, that people were willing to consider any proposal at all. The workers and the unions looked at any way at all of keeping the factory open. The history of the Wrexham factory, which I will come to, is that exactly that happened. There was a very strong effort to keep the factory open.

[Chris Evans (Islwyn) (Lab/Co-op)]

My hon. Friend will remember that one of the callous decisions that this Government made was when the Welsh Assembly asked whether the Remploy budget could be devolved to the Assembly. It was a very good plan; it could have saved jobs and kept the factories open, but the Government said no. Would my hon. Friend say that that was quite cruel?

[Ian Lucas]

It was cruel and unnecessary. The Government very often fall over themselves to pass on difficult problems to the Welsh Government. In this case, the Welsh Government came forward and suggested that the Remploy budget be devolved, but the UK Government refused. There was an absolute dedication on their part to close the factories. They were determined that they were going to close them, and despite what the Minister has indicated previously, I am convinced that that was part of a cost-cutting exercise on the part of the Government. They have a stated commitment not to reduce the budget, but I will come on to the figures that show that the money the Government are spending on disabled people is decreasing.

I have made the argument repeatedly to the Secretary of State and to the then Minister for the disabled, who is now the Minister for Employment, that there was a group of people who wanted to continue to work in Remploy factories, doing gainful, positive work, and working for the most part with other disabled people. That argument was consistently ignored and the factory closed, despite a further and intense campaign to keep it open. Efforts were made in Wrexham to secure private investment to keep the factory open, and additional support, as my hon. Friend the Member for Islwyn (Chris Evans) mentioned, was suggested by the Welsh Government. However, the UK Government were not prepared to consider allowing the Remploy site in Wrexham to be used and, as a result, it was very shortly thereafter sold off for housing development, which two and a half years on is proceeding in Wrexham town.

There was a private sector effort to keep the factory open. A business called Enterprising Employment, which worked with the Welsh Government for a period, employed about a dozen former Remploy workers for a time, but it was unable to continue and those workers were ultimately made redundant and lost their jobs.

We therefore have a picture of the people who worked for Remploy, many of whom had worked for many years on the site, being made redundant. The site in central Wrexham was sold off for housing development. I make no criticism of the fact that the site is now being used—thankfully, in a positive way—but it would have been much better if those people who were working there continued to work there.

The Government’s rationale for closing the Remploy factories was that they wanted to spend the budget of the Department for Work and Pensions more efficiently, so two and a half years on from the publication of the Government’s response to the Sayce review, back in March 2012, is an appropriate time to look at the Government’s record on those vulnerable people. What is their record?

[John McDonnell]

Before my hon. Friend moves on from the Sayce review, it is worth putting one point on the record. The Government have prayed in aid the Sayce review all through the process. The Sayce review said that there should be a proper process of consultation—that was envisaged to be six months so that people could engage in a proper dialogue about their futures, but we got 90 days. That was one of the earliest grievances and it betrayed the Government’s intent, which was to make cuts rather than to protect those individuals.

[Ian Lucas]

There was never any doubt about the Government’s intent. There was never any real effort to keep the factories open. The intent was to close them. What has been the consequence? We know from an answer to a parliamentary question given to my hon. Friend the Member for Stretford and Urmston (Kate Green) on 15 October 2014 that, nationally, 1,507 people are, to use the Government’s euphemism,

“choosing to work with our personal case workers to find another job”—

that means they are unemployed—and 774 are in work. From the Government’s figures, we know that, nationally, twice as many former Remploy workers, who used to be gainfully employed, are without work than have work.

I am speaking about the matter today because, 10 days ago, I went to visit the Remploy employment agency in Wrexham and met the staff who are working to try to place disabled individuals in work. That is a dedicated service for finding work for disabled people in the town. The staff who work there are impressive and committed to their work. I want to make it absolutely clear that I am not criticising their work, because they are working hard to place disabled individuals with jobs in today’s job market—I commend them for their efforts, but they have a tough job.

On my visit to Wrexham, I met three men whom I have known for a number of years, who were in the agency and who previously worked in the Remploy factory. They had all worked at Wrexham Remploy for many years, and they were still sitting together because they had known each other for a long time. They had been part of the campaign to keep the factory open, with all the marches, the street stalls, the efforts and the camaraderie that that entailed. When the 2012 campaign was in force, the Government’s response to that camaraderie was to have a very limited period of consultation, make no real effort to engage in keeping the factory open and reject the Welsh Government’s proposal to devolve the budget. The result was that individuals who had been employed became unemployed. I listened to the accounts of the difficulties that those three gentlemen had encountered in securing work. Some of them had secured work for some time, and some had not, even though they had had dedicated support for their efforts to find work. I applied for this debate to report on the efforts that they have been making and to hold the Government and Ministers to account for the failure that their own statistics show.

The employment market in Wrexham is now intensely competitive. We are fortunate to have a diverse economy, with people working in manufacturing, retail, and the service sector. However, agency work dominates the market, especially for those who are unemployed, and access to new jobs is often subject to rigorous gatekeeping by employment agencies. The result is that former Remploy workers are, as they told me, at an immediate disadvantage in the job market because of their disability, and the agencies have no interest in accommodating the needs of the disabled. Agencies look for the most physically able staff, and often reject disabled staff either before they are taken on or shortly thereafter. Even when jobs are available, they are subject to the vagaries of reduced-hours contracts that are often terminated at short notice, which play havoc with the arrangements that the Government impose through the local jobcentre.

The overall consequence is that, during the past year in Wrexham, according to figures from the Office for National Statistics, median weekly earnings have fallen by 7.4%. Even for those who are in work, life is getting tougher under this Government. The Government present the 774 former Remploy workers who are in work as successes, but those individuals are worse off as a result of their current jobs and income. They also have to deal with the obstacle course that the Government have imposed on individuals in the employment market.

When people lose work, securing access to benefits is a lengthy process and there are often delays in paying benefits to which people are entitled. The majority of applicants to the local food bank are awaiting payment of benefits. In Wrexham, 2,864 people have been forced to use the food bank in the six months from April to September 2014, a figure that has increased by 40% in the past year. When I spoke to former Remploy workers, they told me that they were applying for jobs they knew they had no chance of securing in order to comply with requirements imposed by the Department for Work and Pensions and the jobcentre. If they do not do so, they will be subject to benefit sanctions.

That is the reality for Remploy workers who were sacked by this Government more than two years ago. For many years, they had gainful employment doing productive work. The excellent briefing provided by the House of Commons Library tells us that a coalition Government in 1944, led by a Prime Minister and Deputy Prime Minister who were worthy of the offices they held, legislated to set up Remploy. The current Government, by their actions and approach, have let down some of the most vulnerable people in our society, and they should be ashamed. As a taxpayer, I pay my taxes to support vulnerable people in Wrexham and across the country. We are talking about worthy individuals who deserve support and who want to work. They now face intense competition in a difficult job market, in which it is difficult for them, with their disabilities, to compete. The Government’s decision to take away their opportunity to work for Remploy, a dedicated business for which they had worked for many years, was a cruel step that took away their opportunities, their camaraderie and their strength.

The Government promised to help former Remploy workers, but the Government’s own figures show that those promises have not been kept, because two out of three of those workers are unemployed. That is the responsibility of the Secretary of State, the Minister and the Government. They need to look at those disabled workers and act. Why have the Government failed to secure re-employment for so many former Remploy workers? What obligation is there on job agencies to accommodate the needs of disabled workers? What percentage of individuals placed in work by employment agencies are disabled? What proportion of former Remploy workers are employed on reduced-hours contracts? What proportion of former Remploy workers are being paid less than they were when they were employed by Remploy? How much did the Government receive for the sale of the Stansty road site in Wrexham, which is now being used for development?

This is a sorry tale of a Government who, in their commitment to reducing budgets, made people redundant, put people out of work and broke the spirit of a proud work force who had worked together for many years. I believe in Governments who support the most vulnerable in society, and I hope we will shortly have a Government who meet that fundamental obligation, an obligation that any worthy Government would maintain. This is a dreadful tale that the people of Wrexham will remember when they vote next May. I hold the Government responsible for the dreadful actions they have pursued throughout this matter.

09:50

[Chris Evans (Islwyn) (Lab/Co-op)]

It is always a pleasure to serve under your chairmanship, Mr Havard. It is fitting that you are in the Chair today because, like me and my hon. Friend the Member for Wrexham (Ian Lucas), you also had a Remploy factory in your constituency. I pay tribute to my hon. Friend not only for securing this debate but for the passion and fire with which he spoke. He articulated how Opposition Members feel about the way in which Remploy workers were treated by this Government.

A great many things have made me angry since I first came to this House. I have been angry about the way that people, and working people in particular, have been treated. I have been angry about the way that those who find themselves on welfare have been treated like scroungers when they are just looking for a second chance. I have been angry about the way in which those who find themselves ill are being let down by the NHS. But the thing that makes me the angriest is the treatment of Remploy workers in Croespenmaen.

I worked for my predecessor, Lord Touhig, for a number of years, and I remember when, similar to Wrexham, Croespenmaen first came under threat of closure in 2008-09. Workers in Croespenmaen did not stand back and let it happen to them. They fought back in the way that any business would fight back. Instead of sitting back and letting things go, they went out looking for business. They went out asking people and businesses whether they needed packaging. They were not afraid about whom they asked. One of the proudest moments of Lord Touhig’s career—I remember him saying this, and it was one of his last acts as Member of Parliament for Islwyn—was overseeing the signing of a packaging contract between Remploy Croespenmaen and BAE Systems. As you serve on the Select Committee on Defence, Mr Havard, you know that BAE Systems is not a Ronnie and Reggie outfit; it is a blue-chip, FTSE 100 company. BAE Systems does not sign contracts for the fun of it; it signed the contract because it saw Remploy as the best provider of that product.

Two years later, the then Minister with responsibility for disabilities, the right hon. Member for Basingstoke (Maria Miller), effectively told Remploy Croespenmaen in a side room—it was not even announced in Parliament—that it was closing. Remploy Croespenmaen was told via a press release through BBC news. The House was not told until that Minister was forced to come to make a statement at the end of the day. Hundreds of people lost their jobs, and what a shabby way to treat them. That was just the start. I remember standing up and saying that the workers of Remploy Croespenmaen had worked hard and felt that they had been kicked in the teeth. As my hon. Friend the Member for Hayes and Harlington (John McDonnell) said, I pay tribute to the trade unions. Much of the work to secure new business was done by the trade unions, particularly by Ian Lloyd, the GMB trade union representative. To say that the unions are anti-business is a mistake, and it is another myth peddled by the Government.

What happened next was even worse. My right hon. Friend the Member for Cynon Valley (Ann Clwyd) stood up at Prime Minister’s questions and asked directly whether the Prime Minister would seriously consider the idea of devolving Remploy budgets to the Welsh Assembly, which would give Remploy hope. A couple of weeks later, Remploy was met with a big, fat no. The worst thing is that, of all the packaging companies, Croespenmaen was the only one that closed; the others stayed.

We now found ourselves in a far worse situation. As my hon. Friend the Member for Wrexham said, since the 1940s Remploy factories have provided good, well paid jobs for thousands of people with disabilities, mainly those who were injured during war. Most people employed in the factories had job satisfaction, a supportive and accessible environment and a sense of community, and I have an example. When the announcement was made, I went to Remploy Croespenmaen as quickly as possible. I stood in its canteen and saw many people in tears because the future suddenly went from being hopeful and bright to looking bleak. Those people stood and said, “Is there any way you could save our jobs?” We MPs are very privileged because we can do a great many things and help many people, but there are times when we feel powerless. Unfortunately, that was one of those times.

Remploy employees made a valuable contribution to UK manufacturing. They worked hard, and it was the same across the country—it was not just in Islwyn or Croespenmaen. Remploy employees did not, as the Secretary of State for Work and Pensions suggested at the time, sit around and make coffee. For someone with responsibility for disabilities to make such a comment is crass and unhelpful. We have heard other Ministers say exactly the same things about people with disabilities, and they are still not condemned and it is still not seen as shameful. I have looked all over Hansard for the Secretary of State’s apology, and I have not got anywhere. All we have seen from this Government is a total disregard for people with disabilities and ignorance of what workers actually do. The Government are out of touch and downright disrespectful.

I asked the Secretary of State at the time—he does not have to do it now, because I asked him at the time—whether he had ever visited a Remploy factory, looked into the workers’ eyes and said, “You are only good for making a cup of coffee.” I doubt that very much. If he had gone into a Remploy factory, he would have seen people with skills who are able to manufacture and make things, which is the one thing that the Government are talking about. Do the Government really believe that those people counted for nothing? Are we to believe that the Secretary of State’s comments represent exactly what the Government mean? I know the Minister quite well, and I respect him, but will he now apologise for those comments on behalf of the Secretary of State? Despite claims that Remploy was closed because it no longer made commercial sense, the Secretary of State’s comments suggest otherwise.

I believe that people with disabilities should be valued. People work their best when they feel valued. The worst thing is that I raised with the then Minister with responsibility for disabilities, the right hon. Member for Basingstoke, the fact that we had a 90-day consultation. That was 90 days to formulate a business plan, to cost it, to find suitable funding sources and partners, to review the plan, to contact key stakeholders, to consult unions and Remploy management and to write and submit the report. I would never suggest that the Government wanted most of those plans to fail, but it seems that they did not give the plans the best chance to succeed.

The Government have made much of how they have followed the independent Sayce review—I have a lot of time for Liz Sayce—so why did they not follow her recommendation for

“a sufficient window (for instance, six months) to put forward a business plan”?

We will never know how many jobs would have been saved if the Government had followed that recommendation. We will never know how many communities in which Remploy prospered have now been damaged. We will never know how many former employees have been left depressed and isolated.

What we do know, however, is that less than one in four former Remploy employees had found work by October 2014. Most of those people are working fewer hours for less pay than when they worked for Remploy. The facts are simple. In the year since Remploy closed, only 24.1% of its former employees are in work; 45.7% are working fewer hours; 59.5% are on worse pay; 64.7% have worse benefits, holiday time and pensions; and 69% preferred their time at Remploy to what they are doing now. The simple truth is that they have been let down. They were promised help into new jobs, but most are still unemployed. They were promised support to keep leading active lives, but unfortunately most cannot do so.

There is a lot of talk about welfare reform, but the only way out of welfare is work, which I am afraid is not happening. We are getting closer and closer to the end of the 18-month period of extra support for former Remploy employees, yet so many remain unemployed. The fears we raised at the time are unfortunately being realised. How do the Government expect to help people back into work when they could not do so during the time in which Ministers planned to provide more funding and support? I would welcome the Minister’s answer to that question. The people whose lives are currently more difficult and the communities that built up the Remploy factories that the Government closed will be grateful for the answer as well.

I remind the Minister that for nearly 70 years, under Labour and Conservative Governments, Remploy existed and flourished as a way to provide disabled people with work at good pay. For many people, over the years, working at the Remploy factories was the only time they got out of the house to socialise. They were their communities and their social lives and they gave them purpose in life. They helped them to be productive, active and, above all, happy.

Since the Government closed most of the factories, many of the disabled people who were employed by them have lost all that. They have lost their community and some have become isolated and, in the worst cases, depressed. We can argue back and forth on the economic reasons for that. I would say that closing the factories was wrong economically, but what is undeniable is that it was the wrong choice not only on a business level, but on a moral and social level. That has shown once and for all what the Government really think about the most vulnerable in society. For the Government to say that they are on their side is a joke that is not funny to those former Remploy workers. The sad thing today is that it is far too late to reopen any of those factories, but it is not too late for the Government to repair their mistake. I look forward to hearing what the Minister has to say, but, of all the crass decisions, closing the Remploy factories was among the most cruel.

10:01

[Nia Griffith (Llanelli) (Lab)]

I congratulate my hon. Friend the Member for Wrexham (Ian Lucas) on securing the debate. It is pertinent to remember that it is in meeting people and experiencing their despair in a very difficult job market that we see the personal side of the Government’s decision. Although I will address my comments to a broader economic perspective, we must never lose sight of the effect on the individual. The difficulty is that the actions the Government have taken in closing the Remploy factories and the lack of support they have given to workers to find new outlets for employment have happened against a backdrop of the destruction of the economy in the very parts of Wales where those workers are looking for jobs.

Former Remploy workers face some of the greatest barriers. Recruitment agencies inevitably go for the people who can be most flexible, because that is the type of job market we have. Former Remploy workers are often based in areas with the least transport connections to other job opportunities—that is why the factories were set up in the first place.

From the figures we have, we know that the tops of the valleys—the areas that are furthest from the job markets—have suffered most under the Government’s tax and welfare reforms. The knock-on effects on those local economies make it particularly difficult for anyone who faces barriers to travelling or being employed. That particularly affects former Remploy workers.

A Sheffield Hallam university report recently analysed the effect of the tax and welfare reforms on Wales. It showed that they are taking £1 billion out of the Welsh economy and that the people in the least well-off communities are suffering most. Because those on the lowest incomes spend their money quickly in their local economy out of necessity, the knock-on effect of the loss of £1,000 a year of income per working adult—if there are two adults in a home, that is £40 a week—has been net losses of 7,000 jobs in the local service industries in Wales. That is purely as a result of those reforms.

Even before Remploy people came into the market, the number of jobs was decreasing, so before new jobs can be created, it is necessary to overcome the loss of jobs in those areas. Inevitably, spend is in the bigger towns, meaning that there is even less in some of the deprived areas where there is the most difficulty in finding any opportunities for people to get new employment. That affects anyone who faces any barriers to the workplace, which is the case for many former Remploy employees.

[Ian Lucas]

Does my hon. Friend agree that, in addition to the difficulty in securing work, the income of those in work is falling? That means that the spend in the local economy is decreasing, which adds to the depressed nature of the economy in those areas.

[Nia Griffith]

Absolutely. The way in which the Government have implemented their tax credit reforms means that many working people have lost out significantly. Add to that the fact that 7,000 whole jobs have been taken out of the economy, and the result is that many people have fewer hours and fewer shifts, so they have less to spend. At the same time, they are hit by high fuel prices, which the Government are not doing anything about. They cannot avoid paying them, so they have less money to spend in the local economy. In fact, four times as much money has been taken out of the Welsh economy as comes in from the EU grant to the valleys and west Wales. That has a significant knock-on effect.

What is sad is that we recognised that this was a difficult time, which is why the Welsh Government wanted to step in to do their bit to support the Remploy factories and look at ways to help. The Welsh Government have put in support through the employer’s support grant, which encourages employers to take on additional workers, and there has been some success in the Swansea area in setting up successors to the Remploy factories. However, the climate is difficult and those measures cannot account for all the former workers. Therefore, although we have one or two successes to celebrate, they are not sufficient. There are Remploy workers in my constituency who have not been re-employed in any way.

We want a much more determined effort by the Government to help the individuals concerned. In the Welsh Affairs Committee report on the Government’s Work programme in Wales, we did not find that the work being done was successful. The success rate for people with disabilities getting jobs in the Work programme was 5%, which is below the national average of 7%. That shows the scale of the problem: only one person in 20 is being found a job opportunity. A huge failure of the Work programme is its ability to address people who are former Remploy workers and those who might have looked to work in the various opportunities provided by the Remploy factories.

While the Government have thrown out the Welsh Government’s proposal to take a more positive approach to the Remploy factories, they have not put anything else in place that would lead us to jump for joy and say, “What an excellent idea.” There seems to be a failure. Oxfam Cymru suggested that, in some instances, those in the more-difficult-to-find-jobs-for category are being parked. That is a damning statement.

The worry is not only that there is a total failure to identify and help people who have specific disabilities, but that, within the greater economic context, the Government’s decisions have made it difficult for poorer areas to generate employment opportunities. In fact, those decisions have exacerbated the problems in those areas where we are trying to find employment opportunities, where there have been major job losses, and where there are difficult economic circumstances. At the same time, the Government programmes are not working to help the people in those areas.

We praise those employers who have made an effort, who are trying to take on people and who are trying to accommodate people with different forms of disability. However, even in the harsh reality of the present time, the evidence given by Remploy to the Welsh Affairs Committee shows that there is such a large number of temporary, short-term and short-hours types of employment that that situation is creating a huge difficulty. That reminds us why the form of employment at Remploy, with a proper timetable, proper week and proper factory to work at, was so important, particularly for people for whom routine is essential.

Former Remploy workers face travel problems in my area. They must cope with difficult travel arrangements to get down to the various centres, which makes things even harder for them. The result is that some do not attend those centres—it is simply impractical for them to do so.

When the Minister responds, I ask that he comes forward with positive ideas, because we would like a significant improvement in the outcomes for Remploy workers, and we would like the Government to take the initiative.

10:11

[John McDonnell (Hayes and Harlington) (Lab)]

Thank you, Mr Havard, for calling me to speak. I apologise in advance, because I will have to leave this debate early to chair another meeting. I wanted to say a few words before I go.

It is important that people understand the architecture that Remploy fitted into. Way back, after I had come off the shop floor and been to university, I started working for the National Union of Mineworkers. Then I went on to the TUC. One of my roles with the NUM was to work within the social insurance department, and then within the TUC I worked in the social welfare department. In those roles, I dealt with disability, largely because of the expertise I gained in my NUM days of dealing with ex-miners who had suffered both industrial injuries and industrial illnesses.

The architecture of support for people with disabilities was, of course, that if someone could not work, we would put in place, under the measures introduced by the Attlee Government, sufficient welfare benefits to ensure that they did not go into poverty. The workmen’s compensation supplementation scheme dealt with industrial injuries. To a certain extent, it was a no-fault scheme. For those who could work, there were rehabilitation services to get them back into their industry. If that was not possible, the rehabilitation services got them into other sectors.

Within the architecture of support for people with disabilities, we also had a 3% quota, whereby companies were required to take on 3% of their work force from among people with disabilities. That target was never fully achieved, but at least it was something we could rely upon in our negotiations with employers to get disabled people into work.

In addition, there was always a recognition within that architecture that some people would need to work within a supported work environment, in some cases for just a limited period and in some cases permanently. That is the role Remploy fulfilled.

Mention has been made of the introduction of Remploy under the Churchill and Attlee Administrations. It was specifically for those people who had a disability. Many of them were soldiers coming back from the second world war, but Remploy’s existence was also a recognition of industrial injuries. A large number of people who went into the Remploy factories were not ex-soldiers but ex-miners. In some ways, the factories were located in particular areas to cater for that need.

In the early 1980s, the TUC put me on the first committee that tried to end discrimination against disabled people. There was a discussion about the architecture of practices to end discrimination and ensure integration. There was also a recognition that there needed to be an improvement on the quota system for getting people back into work. However, there was always an acceptance that there would need to be a supportive work environment at some stage, even if it was only for a limited period of time during which people could be supported to get back into work. There was also a recognition that some people would perhaps never be able to get back into the work stream, but they still wanted the dignity of work, and the dignity earning a decent income to support their families. Again, that is the role Remploy fulfilled.

When there was a discussion about Remploy under the previous Government, there was a recognition that there had to be financial support for a period of time. Many people and organisations, the trade unions in particular, accepted that there had to be a tightening of the finances of the Remploy administration. Like many Members, I can remember that, when we met trade union delegations, we argued about the top-heavy management of Remploy. The unions came up with reforms that could be undertaken to save the Remploy factories and to operate them in a different way, with much more worker involvement in their management, in some ways moving towards a co-operative model. Although I was anxious about some of the decisions that were being made about individual Remploy factories, I thought at least that we had a process of engagement with the work force under the previous Government that would maintain at least an element of a supportive working environment for people who needed it.

When the Sayce report came out, I was extremely concerned about its conclusions. However, as my hon. Friends have already said, at least we were given the prospect of a process of engagement: six-months of discussions would take place; the options would be discussed; and the work force would have the opportunity to bring forward their own ideas. The reason we seized upon the suggestion of a six-month period, at least as a period of dialogue, was that many of us said that, if there was a rush to closure, there would be the prospect of a large number of people never working again. Unfortunately, all our predictions have come true.

We need to listen to the people on the ground. There is a quote from Jerry Nelson, the GMB national officer, in the House of Commons Library pack that has been produced for the debate. As a union, the GMB has kept in touch with its former members, and we should remember that quite a few of them took redundancy before the process of final closures had even started. In the GMB’s annual report, Jerry Nelson says:

“It is now one year since the final day of the Remploy factory closures. Over 2,700 disabled workers had their lives destroyed by this government’s callous and thoughtless attack on the disabled workers, who relied on their employment to maintain their sense of independence, working in an environment of protected equality. The factories were a sheltered environment and for many of these workers it was their only connection with life outside of their own homes.”

He went on to say that the GMB had kept in touch with many of its former members, and many of them were now sitting at home feeling “depressed and isolated”.

Many of us hear a similar story time and again when we meet the ex-Remploy workers. Many of us who have tried to keep in touch with them during this very difficult period know what a struggle they have gone through, and we also know the efforts they have made, using the advice and assistance they have received, to try to find alternative work.

The press release about Remploy that came out from the Department for Work and Pensions states:

“Since last year, over 80% of ex-Remploy workers have found jobs or are receiving specialist employment support and training to help them find one.”

People found that element of spin unacceptable, because if we drill down into the figures, as my hon. Friends have done, we find that the bulk of ex-Remploy employees are desperately seeking employment and that most have not found it.

I can get extremely angry about what has gone on but I try not to, because getting angry is not constructive. Instead, I say that we need to learn the lessons about what happened at Remploy, including the lessons about the harm that the process has done to so many individuals and their families, and their local economies and communities. Individuals and whole communities have been depressed as a result of the decisions made by this Government. With a new Minister taking responsibility—the previous ones dealt with it scandalously—it is time now to stand back and think again.

With regard to the need for continued support, we were given a time limit of 18 months. That must continue. It needs to be properly funded, at the same level as now, and perhaps with additional resources applied. At some stage, a Government—if not this one, perhaps the next one—will have to start thinking about reinventing supported work environments such as those Remploy provided. It provided such a constructive role to people who will never be able to enter into the mainstream. I say that because increasing numbers of soldiers are coming back from combat zones, just as they did after the second world war. They will want support to get back into work. In addition, large numbers of people out there with disabilities just want the opportunity of the dignity of work and of supporting their families. That is what Remploy gave them.

Having come through this absolutely disgraceful period of callous behaviour towards people with disabilities and having learned, a year on, about so many being unemployed, and about the effect it has had on so many people’s lives, there needs to be some humility on the part of Government about their policies for the future and the continued support that is needed. They need to look again at the need for supported work environments for people with disabilities, which are necessary if we are to tackle their needs.

As I have said, people can get very angry about this. I am at that stage now where I have moved beyond anger. I just want the Government and Ministers to start listening to the people who have gone through this and learn some lessons.

10:21

[Kate Green (Stretford and Urmston) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Havard. I congratulate my hon. Friend the Member for Wrexham (Ian Lucas) on securing the debate and all colleagues who have contributed to it. I thank the former Remploy workers whom I have had the opportunity to meet over many months, who have spoken to me about their feelings about the Remploy closure, and the Unite and GMB trade unions who support them. In that connection, I draw attention to my entry in the Register of Members’ Financial Interests.

Today’s debate comes just over one year after the closure of the last Remploy factory. It is clear from what we have heard that there is a wide gulf between the picture painted by Ministers when the closures were announced, which suggested that the Remploy model was outmoded, outdated and not offering genuine employment opportunity to disabled people, and the real situation we find ourselves in today. My colleagues have highlighted some personal consequences of that prejudice against the Remploy model: the fear that people have been left with, the insult to their dignity as proud working people and their sense of loss of hope for the future. That has come as no surprise to many of us, and it would not have surprised us when the closures were proposed.

Even when Ministers announced the intended closure of the factories, many colleagues sounded the alarm. They highlighted the challenge that many Remploy staff would face when trying to find work in mainstream employment, particularly in areas that have already been hit hard by job losses, as my hon. Friend the Member for Llanelli (Nia Griffith) said, and particularly for those workers who were employed by Remploy for many years, often for decades, or who lack formal qualifications. Such circumstances do not give people a head start in the labour market. That was well known and well understood from the outset.

Concerns were raised when the closures were proposed, and well before then, about the failure of the then Remploy management to optimise business performance. That has been mentioned during the debate. Accusations by trade unions and others suggested an over-costly management structure and an absence of will and determination on the part of senior Remploy management to seek and develop new business.

The business plan put in place in 2008 under a Labour Government had not been allowed to run its full course when the present Government announced the wholesale closure of the factories, but many Remploy workers strongly believed that, with the right management and focused business development efforts, that business plan offered the basis for a successful future for Remploy. When it was announced that the factories would close, some workers hoped to take over parts of the business themselves, such was their faith in the future of the Remploy model, and they were determined to make a go of it. It was a reasonable ambition. Evidence from other European Union countries, including Scotland, suggests that supported employment alongside other labour market strategies to promote the employment of disabled people can be effective in increasing their employment. This blanket assumption that supported employment is a dead-end for all really is not borne out by an analysis of the evidence.

As hon. Members have said, the real situation we face is that, according to the DWP, 1,507 disabled workers were laid off as a result of the closure and were, in the DWP’s words, “choosing to work” with personal advisers, as my hon. Friend the Member for Wrexham said. The Library quotes a higher figure of around 2,000 workers losing employment, possibly because the DWP figure only reflects stage 1 lay-offs or because it is deliberately ignoring those workers who are not engaged with DWP, as the Department simply does not track them. Will the Minister be absolutely clear about the figures? How many people were previously employed in Remploy at the time of the closure and what destination has each of those individuals reached today?

At best, only about half the former workers are now in employment. The Minister said in a written answer to me on 15 October, that 774 are currently in work, 389 are in receipt of employment and support allowance, 345 receive jobseeker’s allowance and 382 confirmed their intention to retire. A survey by GMB in 2014 suggested that only a quarter of former workers were in employment and that many of those were working short hours or were on lower pay than when they worked in Remploy.

[Ian Lucas]

I noted an interesting statistic from the written answer that my hon. Friend mentioned. Does she agree that the fact that 345 former Remploy workers are in receipt of jobseeker’s allowance suggests they are not receiving dedicated help as disabled workers? Does not she find that disturbing?

[Kate Green]

I, too, found that statistic interesting. I hope that the Minister will explain whether they are receiving the same access to the personal help and support programme as those workers who have been placed on employment and support allowance, because it would be a matter of concern if a two-tier offer was being made to former workers, all of whom have emerged from the same circumstances. It also points to the fact that these workers have much to offer the labour market, with the right support.

Of course, we know that the assessment processes for determining who is in which category of employment support allowance or jobseeker’s allowance are not particularly trusted—I think that it would be fair to say—by those seeking employment support. The Minister would do well to delve a little more closely into the destinations of that JSA group, particularly, because if the Government’s logic is correct, it ought to be moving into work very easily. Yet here we are, 18 months on, and it would appear that 345 of them have not done so.

The GMB survey suggests that the picture is rather more gloomy in any event, with only a quarter of former workers in employment, often in poorer conditions than under their Remploy contracts. We know from the GMB research that many more of those who are now categorised as retired have chosen to retire in the light of futile searches for alternative employment or because of a lack of help from the Department. That is dispiriting, because Ministers assured Parliament at the time of the closure programme that extensive support would be put in place. An extra £15 million was committed to the Access to Work programme and £8 million was committed to create the guaranteed people help and support package, which was to provide support to each affected disabled employee for 18 months after they left Remploy.

Despite that funding, we have to accept that the employment outcomes are disappointing. It is unclear what the additional funding committed to Access to Work and PHSP has achieved. In a written answer on 14 October, the Minister told me that 265 former workers were receiving Access to Work support and that 827 former workers had taken part in community support fund projects, of whom 348 were helped into employment. Unfortunately, the DWP does not track those working fewer than 16 hours a week and has no information on whether the type of employment they are accessing is fixed term, temporary, part time or voluntary.

Former workers have reported difficulty in accessing the support they want. One group of workers in Yorkshire who have established their own business and are attracting contracts from former Remploy customers reported a rigid reluctance on the part of the DWP to support them with grants, other funding and advice. Other people have told me that the employment support they were offered was inadequate and did not meet their needs, although the Minister told me in a written answer on 14 October that the DWP has spent £5.5 million on providing individual specialist support. I would be grateful if he offered his analysis of why, when more than £20 million has been spent on supporting former Remploy workers, around half of them remain without work. Is he satisfied with that performance? If not, what further action is he taking to increase the employment rate of former workers? Why has only £5.5 million of the £8 million allocated to personal support been spent more than a year after the factory closures? What will happen to the remaining funds?

According to the DWP, former workers who receive specialist support through the PHSP will continue to receive specialist support after the first 18 months of support is complete, usually from the same specialist adviser. Where is that support coming from and how is it being paid for? How are the advisers being remunerated? Are they being paid on the basis of results? How many former Remploy staff have moved on to other labour market programmes, such as the Work programme or Work Choice? What outcomes are being achieved for those workers if they are participating in those programmes? Will the Minister comment on the issue raised by my hon. Friend the Member for Wrexham of the attitude of private employment agencies? What are their success rates in placing former workers into employment? What fees are they receiving? What is their attitude to former Remploy employees?

What steps have been taken to assist former workers in reskilling and developing new skills for a different labour market? How successful has that been? What process is in place to analyse, identify and prepare them for specific employment opportunities in their local communities? As my hon. Friend the Member for Llanelli pointed out, travel is not a reasonable option for many. In some parts of the country—Wales is a good example—travel distances would be extremely large in reaching any other offer of employment.

What support is being given to enable groups of former workers to come together to form their own businesses or social enterprises? In particular, what steps are the Government taking to help them in accessing public contracts? It was noted in the debate that the failure to put energy into delivering public contracts to the Remploy factories through public procurement processes as intended was a factor in the difficulties they experienced in achieving their business plans. It would be useful to know what advice is being given across central and local government to encourage procurement from social enterprises, where those have replaced Remploy.

The wider well-being of former Remploy workers has been raised in the debate. My hon. Friends have highlighted the importance of social contact with colleagues and of employment routines for this otherwise potentially isolated group of individuals. It seems that information on the nature of the impairment or the condition of former workers has not been tracked, so we will not know how their ongoing physical or mental health has been affected.

My hon. Friend the Member for Wrexham highlighted that there would have been a capital receipt from the sale of the former Remploy factory in his constituency. Will the Minister say more about what has been achieved overall from the realisation of capital assets? How much has been recouped in that manner? If the Government have received capital money, where does that funding sit and what will it be used for?

It seems that there has been complacency in the Government on the future of former Remploy disabled staff, both at the time and subsequently. There is little sign that Ministers can show what has worked in helping former workers into sustainable employment. There is little evidence of help to build successful businesses or social enterprises. For those individuals left without work, the future remains bleak. I hope that the Minister can provide details of further effective, ongoing support, since he surely cannot be satisfied that half the former employees remain without work. Many fear that they will never work again.

In conclusion, if the Minister proposes further sensible plans to maximise the employment chances of former Remploy staff, the trade unions, the workers themselves and all my parliamentary colleagues here today, as well as those colleagues not present who had Remploy factories in their constituencies, stand ready to do what they can to support the Government in increasing the employment chances of those workers.

10:37

[The Minister for Disabled People (Mr Mark Harper)]

It is a great pleasure to serve under your chairmanship, Mr Havard. I congratulate the hon. Member for Wrexham (Ian Lucas) on securing the debate. It was surprising that we spent so little time on the full history of the process, going back to when the previous Government started the factory closure programme and recognised reality. I remember those events clearly, because I was the shadow Minister for Disabled People between 2007 and 2010. I had a small Remploy factory in my constituency in Lydney.

It is worth putting on the record that the right hon. Member for Neath (Mr Hain), who was the Secretary of State for Work and Pensions at the time, was right and had our support. It is disappointing that Opposition Members have ignored the reality. In a statement on 29 November 2007, he recognised that change was necessary. He said:

“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 years’ time Remploy would require £171 million a year on current trends.”—[Official Report, 29 November 2007; Vol. 468, c. 448.]

That would have represented the entire annual Workstep budget at the time. I know that he did not find that a comfortable process, but he recognised the reality that the situation simply was not sustainable and closed 28 factories. We know nothing about any of the employees involved in that, because the previous Labour Government chose not to follow their progress.

It was interesting to hear about the GMB survey. If I heard the hon. Member for Hayes and Harlington (John McDonnell) correctly—I am disappointed he could not stay for my response to his questions, but I am sure he will read it in Hansard tomorrow—he referred to 2,700 or so employees. As there were not that many disabled employees employed by Remploy enterprises when the Government came to office, it must be the case that quite a lot of those employees were made redundant by the factory closures under the previous Labour Government. We simply do not know anything about them, because the previous Labour Government failed to track their progress. That was an improvement made by my right hon. Friend the Member for Basingstoke (Maria Miller) when she was the Minister; she said that we would track employees’ progress. The only reason why we have any of the statistics is that we chose to maintain them while the previous Government did not.

[Ian Lucas]

I am grateful to the Minister for giving way. He said that Opposition Members ignored the previous Labour Government’s record, but I specifically referred to it and to their initial decision to close the Wrexham factory. Will the Minister withdraw the suggestion that I ignored the previous Labour Government’s record?

[Mr Harper]

If the hon. Gentleman looks at the record, he will find that he characterised it in a slightly different way. He skated over the matter. He characterised the decisions that this Government made, when faced with the same financial reality, in a completely different manner, and ascribed motives to the decisions that my hon. Friends took that are simply not warranted. He did not ascribe such motives to the right hon. Member for Neath when he made similar difficult decisions.

[Ian Lucas]

The Minister said that we ignored the record of the previous Labour Government. I specifically referred to it in my speech, so will he withdraw that suggestion?

[Mr Harper]

I am happy to say that he did not ignore it, but he skated over it and ascribed motives to my hon. Friends that were simply not warranted. He did not ascribe such motives to the right hon. Member for Neath who made similar decisions when faced with exactly the same difficult financial circumstances.

[Kate Green]

I alluded to the revised business plan that was brought forward by my right hon. Friend the Member for Neath (Mr Hain) in 2008. Why was that business plan not allowed to run its full course under the present Government? If there were problems in achieving its objectives, what consideration was given to whether that might have been due to faulty management?

[Mr Harper]

The statement of the right hon. Member for Neath made it clear that, despite the 28 factories that he had to close, the previous Labour Government managed to keep open the sites that they did only

“on the basis of very stretching procurement targets and a tough forward plan.”

He continued:

“It will be up to everyone with an interest in Remploy—Government, management, trade unions, local MPs and other political representatives—to pull together to ensure that those factories meet their ambitious targets, otherwise they, too, could be put at risk.—[Official Report, 29 November 2007; Vol. 468, c. 449.]

The reality is that when this Government came to office we faced an even more challenging financial situation, due to the previous Government’s appalling fiscal legacy, which included borrowing £1 for every £4 that was spent. It is no good the hon. Member for Wrexham shaking his head. When this Government came to office, we inherited the worst fiscal position of any Government in the western world. The budget deficit was 11% of GDP. It is no good his shaking his head again. He simply cannot ignore that fact. We had to deal with it, and wanted to ensure that we could support disability employment programmes, on which we have increased spending. That would not have been possible had we not made difficult decisions about the Remploy factories.

[Ian Lucas]

When this Government came to office, they inherited growth and falling unemployment from the previous Labour Government. Will the Minister confirm—he should know this, because I have checked him on it once already—that the deficit is higher now than it was this time last year?

[Mr Harper]

The deficit has been reduced by a third compared with the position that we inherited from the previous Government. The hon. Gentleman can ignore those fiscal realities, but there are now 2 million more jobs in the private sector. The most recent set of statistics contained the excellent news that the number of disabled people in work has increased by 259,000 over the past year, and that the employment rate for disabled people has also increased. There is more to do of course, but that is welcome news.

It is worth putting on the record the financial position that was faced by my predecessor, my right hon. Friend the Member for Basingstoke, when she had to confront the challenges. Two factories were specifically referred to in the debate. The Wrexham factory, referred to by the hon. Member for Wrexham, was losing £878,000 a year in 2011-12. The Croespenmaen factory, referred to by the hon. Member for Islwyn (Chris Evans), was losing £889,000. I do not deny that they may well have won some contracts and increased their business, but the truth is that those factories were losing a significant amount of money.

That is important because that money—around £25,000 a head—was being spent on a small number of disabled people when thousands of disabled people in all our constituencies were not benefiting. If that money had carried on being spent, it would have put at risk the Government’s other employment programmes. We have increased the amount being spent on the Access to Work programme, and we are increasing the resources going into both the Work programme for employment and support allowance claimants and Work Choice. If we had not taken these decisions on the Remploy enterprises that were losing money, those programmes would have been put at risk. The entire Access to Work budget is £108 million a year, which is less than the Remploy factories were costing. The situation was simply unsustainable.

The decisions were difficult. In this very room, the right hon. Member for Stirling (Mrs McGuire), then the Minister with responsibility for disabled people, had to set out and defend her Government’s policies to some of her colleagues. She received my support, because she was doing the right thing. Even if they are from an opposite political party, Ministers who do the right thing deserve support.

Looking back at the decisions that we made, various organisations were supportive of what we did. Disability Wales said at the time that it

“endorses the promotion of fully integrated services and does not see Remploy as either progressive or forward thinking in their approaches to service provision”,

and that Remploy

“are now standing in the way of full integration and indirectly hampering individuals’ chances of progression.”

Those are not my words, but those of Disability Wales. Disability Rights UK said:

“We appreciate that the Sayce Review has caused some concern for disabled people and their trades union representatives working in Remploy factories. However, we believe segregated employment for disabled people is unacceptable.”

On Monday, I was at a Scope event with the shadow Minister and spoke to several representatives from disabled people user-led organisations, all of whom told me that closing the Remploy factories and moving away from segregated employment towards supporting people in mainstream employment were the right things to do.

We have put aside more support for disabled people, not less. The hon. Member for Wrexham said at the beginning of his remarks that we were spending less money on disabled people and that he would go on to set that out, but I did not actually hear him do so. We are spending £50 billion on support for disabled people through things such as personal independence payments and ESA. We have signed up 1,100 employers to our Disability Confident campaign in order to increase the chances of disabled people finding work. The employment figures bear out that that is starting to be successful.

[Nia Griffith]

Will the Minister elaborate on exactly what he will do to help those Remploy workers, mentioned by my hon. Friend the Member for Wrexham (Ian Lucas), who are currently unable to access work opportunities? Will he also explain why he did not take up the Welsh Government’s offer to try to put things right? Nobody is pretending that everything was perfectly okay with the way that Remploy was run previously. Nobody is saying that. However, there have been opportunities to create social enterprises, but it seems as though the Government have deliberately turned them down—

[Mr Dai Havard (in the Chair)]

Order. The intervention is a bit too long. I think the Minister has a grasp of the questions.

[Mr Harper]

I am grateful, Mr Havard. Let me tackle the point about the Welsh Government’s offer, mentioned by the hon. Lady and the hon. Member for Islwyn. The offer was not really an offer. The Welsh Government wanted us to carry on subsidising the factories and to carry on spending a significant amount of money—some £25,000 a head—on a small number of disabled people, which would have been at the expense of the programmes that we were running to support a much larger number of disabled people. If the Welsh Government had said that they had a significant amount of money to put on the table, things may have been different, but they did not. They wanted us to continue to subsidise the factories, which was simply unsustainable. The previous Government knew that. I sat in here and listened to the uncomfortable decisions that Ministers in the previous Government took. They were not comfortable decisions, but they were the right decisions. Those Ministers had the support of my party and me when making those decisions, because they were the right thing to do.

The hon. Member for Llanelli (Nia Griffith) wanted me to cover the support that we have provided to Remploy employees. We put in place the people help and support package, which has been referred to by a number of Members. It was an £8 million package available for individuals to access for up to 18 months after factory closure, and it included access to a personal caseworker and a personal budget. The caseworkers hold meetings and discussions with employees affected to identify suitable support and opportunities, and to signpost or refer them to appropriate provision.

The hon. Member for Wrexham mentioned three individuals. I spotted a report of his meeting with them in the Daily Post, in which he said:

“I saw three Remploy workers last week who are still unemployed and I met them at the Remploy Agency”.

I am happy for him to correct me if I am wrong, but Remploy tells me that of the three individuals whom the hon. Gentleman met, one is in employment at a local cleaning firm, working in a local educational establishment; one has just received his Security Industry Authority licence and has a job offer at a local company; and one does indeed remain out of work, but he has been on a work placement and work trial, and he received a job offer, which he decided to decline. Two of the three are in work or about to start work, which is positive.

[Ian Lucas]

It is two and a half years since the Government made the announcement of the redundancies. Two of those three people were out of work. In my remarks, I did not say—the Minister can check Hansard—that they were not in work. A lot of my speech was about the fact that people are worse off even when they are in work. That was a specific aspect of my speech. He should not misrepresent what I said in the debate.

[Mr Harper]

I am not; I am quoting from the newspaper report. If that is not what the hon. Gentleman said, obviously it has been misreported, but the quote is that he met three Remploy workers “who are still unemployed”. I am simply pointing out that one is employed, one has just received a job offer because he has his SIA licence, and the other person does indeed remain out of work but had received a job offer. I am simply putting that on the record. If he did not say that they were unemployed—

[Ian Lucas]

Two and a half years.

[Mr Harper]

The thing is, we know about the Remploy workers who lost their jobs through out factory closures; we know nothing about those who lost their jobs under the previous Government. More of them lost their jobs under the previous Government, who did not track the progress of such employees, but we did so, which was welcome.

Let me say more about what the hon. Member for Llanelli was asking about. The other thing that we built into the package of support was a community support fund, providing grants to local voluntary sector and user-led organisations so that they could run job club projects to support disabled Remploy employees. In Wales, three local organisations have successfully delivered such community support fund projects, supporting 90 participants, 72 of whom have moved successfully into employment. In July I had the chance to visit one of those community support fund projects at the Lennox Partnership in Glasgow. I understand that 833 former Remploy employees have participated in such projects, which have enabled 352 people to take up new employment opportunities.

On the statistics, we can of course only track employees who have given us permission to do so—we cannot find out what is happening to employees if they did not wish us to know that. On the figures that we have, therefore, 774 of the 1,507 people who were made redundant are in work, which is more than half of them. At the end of October, to update the figures that the hon. Lady had, we had spent £5.7 million of the £8 million support fund; we expect the budget to be fully spent.

It is also worth mentioning Remploy employment services. When the right hon. Member for Neath made his statement, which I remember clearly, he said that the employment services part of the Remploy business had got some 5,000 people into work that year, which was the same as the total number employed in the factory network. The employment services business has continued to be successful. Since 2010, it has supported more than 100,000 disabled and disadvantaged people into work. As Members know, a commercial process is under way at the moment and on track to be completed by next March. The employment services business has been successful in getting a significant number of people into work. As shadow Minister, I had the opportunity to visit some of the successful people whom it had placed in work.

The hon. Member for Islwyn mentioned the consultation process and the time line. I deliberately read out the relevant section from the 2007 speech of the right hon. Member for Neath, so it is not as if the factories did not know that there was an issue. From 2007, he put on the table the fact that those factories that were not closed by the previous Labour Government had to hit what he described as stretching targets and a tough forward plan if they were to be successful. The idea that people only started thinking about such things when we set out our proposals is not true; those factories all knew that they were losing money, and that there was a significant challenge to get profitable work from 2007, or five years before we set out our proposals.

Furthermore, when the Sayce review was under way, there was a consultation on our process in which people could commit to things. That process was not as swift as the hon. Gentleman made out. There were two stages: in stage 1, the Government reduced its subsidy to Remploy from the beginning of the new financial year, so that we ceased funding factories that made significant losses and restricted funding to those factories that might have the prospect of a viable future. The Remploy board looked at all the factories and decided which ones had a reasonable chance of being successful. At the end of that early stage, therefore, some factories were closed.

In a further commercial process, the board worked with bidders and interested parties to see if there were other viable options. The fact is, however, there were no viable options for most of those businesses. Some of the businesses successfully exited Government control. At stage 1, the health care business in Chesterfield and the filters business in Barrow successfully moved into the private sector, and the employees there have ongoing employment. At the end of stage 2 of the commercial process, three businesses successfully exited Government control, completing the process.

A reasonable chance was given to those businesses that had a reasonable prospect of being successful, but in the commercial judgment of the board some businesses simply did not have a viable future. That is why the decision to close them was taken at that time.

[Chris Evans]

Did the Secretary of State not rub salt into the wounds when he commented that workers at Remploy were not doing real jobs, but only making a cup of coffee? Will the Minister condemn those comments as crass, out of date and offensive to so many Remploy workers throughout the country?

[Mr Harper]

I have not seen the specific comments referred to by the hon. Gentleman. What I understand to be true is that some Remploy factories did not have any work to do; the factories did not have orders and the employees were not kept busy with productive work, because the factories were not keeping busy.

The decisions were difficult; I do not deny that. The hon. Gentleman made a point about visiting factories, and I met Remploy employees at the small factory in Lydney in my constituency. I worked closely with the support provided to ensure that those employees were able to move into mainstream employment. I have visited Remploy factories and I know the sorts of things that they did. It is worth saying that when they were set up, they were not designed as a destination; they were designed as part of a rehabilitation process to get those service personnel who had been injured, for example, back into work—retrained and back into the workplace —and the idea was that people would then move on to mainstream employment. Somewhere along the way, however, that goal was lost.

The decisions were difficult, but there were incredible financial challenges. The previous Government started to take those difficult decisions, and they received support from us, because they took the right decisions, uncomfortable though they might have been. I will not apologise for our decisions; they were difficult ones, but they were the right decisions. The fact that we now have more disabled people in work—259,000 extra over the past year—and the success of the Disability Confident campaign show that the Government value disabled people. We want to give them the same opportunities to get into work as non-disabled people have. We have a record that I am proud of, and I want to build on it in the coming months running up to the general election.