Remploy Employment Services

Esther McVey Excerpts

Thursday 12th March 2015 Written Statements

[The Minister for Employment (Esther McVey)]

The commercial process for the exit of Remploy employment services as announced to the both Houses in July 2014 is now complete.

The Remploy board and DWP have agreed that Remploy employment services will be established as a new company, free from Government control in partnership with Remploy’s employees and Maximus.

The exit has been led and shaped by Remploy and has the full support of Remploy’s trade unions and their key stakeholders. Over the last few years Remploy employment services has gone from strength to strength in the support it provides to disabled people to find and remain in work. It is one of DWP’s key providers of specialist support for disabled people. Since 2010, Remploy employment services has supported over 100,000 disabled and disadvantaged people into work. This opportunity, based on a strong partnership, provides the freedom and flexibility the business needs to continue to grow and increase the support it already provides disabled people to find and remain in work.

Remploy’s employees will be a fundamental part of this new partnership with 30% of shares held in an employee benefit trust. Employees will positively influence the operation of the company through the board and through an employee council. This will enable employees to have more direct control and influence on the operation of the company, and for the first time give employees a significant ownership stake in the business which will help to increase the quality of the services and protect and expand the delivery of Remploy’s social mission.

Remploy’s national delivery of Work Choice and other departmental contracts and agreements will transfer into the new company as a part of this process.

Remploy, Maximus and the Department will now work together to establish the new company, which we expect to be fully operational during April. The priority will be to transition the service smoothly and to deliver the best service possible for customers in partnership with Remploy. Current Remploy employment services employees and contracts will transfer to the new company.

The Department will also work with the current Remploy board to manage the remaining activities of Remploy Ltd as a non-trading company.

The Department will ensure that the Remploy pension scheme continues to be funded and that the accrued benefits of members are protected.

This is an historic moment that Remploy has been working towards with its staff and stakeholders and which we are pleased we have been able to deliver by working with them, which will enable the company to continue to help disabled people to find and stay in work for many years to come.

[HCWS373]