Remploy

Lord Freud Excerpts

Wednesday 5th October 2011 Lords Chamber

[Baroness Turner of Camden]

To ask Her Majesty’s Government what action they propose to take regarding the future of the Remploy factories.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud)]

My Lords, no decision has been made on the future strategy for Remploy. The Government are currently consulting on the recommendations of the Sayce report. This consultation closes on 17 October 2011.

[Baroness Turner of Camden]

I thank the Minister for that response, but is he aware that hundreds of disabled people who rely on Remploy to provide them with employment are very worried about the continuation of their employment prospects? Remploy has a reputation for, and experience of, providing supportive work for people who want to work but who otherwise have difficulty in doing so. Would the Government please give support to this worthwhile enterprise?

[Lord Freud]

My Lords, we are aiming to support disabled people in employment, and we have to do that in the most cost-effective way that we can find. There is a remarkable difference emerging between the support to get disabled people into mainstream employment, which, when Remploy Employment Services does it, costs £3,600 a time on a one-off basis—the company is now getting 20,000 people in a year—and the cost of more than £25,000, year on year on year, to keep them employed in the factory services.

[Baroness Sharples]

Will the Minister tell us what Remploy produces now? I am lucky; I have a torn ligament and I have a super belt for it that came from Remploy.

[Lord Freud]

My Lords, Remploy has about 54 different factory outlets doing various things, including packaging, logistics and CCTV—a wide variety of endeavours. That is exactly the point: what a Remploy factory operation needs to be successful is to be run as a profitable entrepreneurial unit. At the moment many of them are loss-making, and indeed across the piece only 50 per cent of people are doing productive work.

[Baroness Howe of Idlicote]

Bearing in mind what the Minister has said, would he also please take into account the fact that Remploy is very flexible with the needs of some disabled people and those who have difficulties with learning? It can accommodate them, which makes a huge difference. I hope that that will be put into the decision that is taken.

[Lord Freud]

My Lords, I must emphasise that what Remploy Employment Services has done in the past few years is genuinely remarkable. In the latest financial year, it has put 20,000 disabled people into mainstream jobs and it is aiming to do that for 30,000 next year. This signifies real change for these people, and that is something on which we must congratulate Remploy.

[Lord McConnell of Glenscorrodale]

My Lords, will the Minister join me in congratulating Ian Russell and the board of Remploy on their terrific achievement in ensuring that thousands more disabled people go into mainstream employment and get the support they need in order to do that? However, does he also recognise the importance for some disabled people of stable factory-based employment which gives them continuity in their lives that they have perhaps enjoyed for 10 or 20 years, and that it would be helpful for them and for society generally to be able to enjoy that in future? A mixed programme of investment to help these people into mainstream employment but also to provide some factory-based employment for those who need it is the best way forward. The Government should continue to support the strategy that the board has followed over recent years.

[Lord Freud]

My Lords, I must repeat that no decisions have yet been taken on the Sayce review. We are in consultation until later this month. However, I must point out that it is vital that the work is real. We are looking at the Sayce recommendations to see whether those factories can be turned into social enterprises where there is real and genuine long-lasting work. Make-work jobs are no solution for anyone.

[Lord Campbell of Alloway]

My Lords, speaking from this Bench, may I respectfully ask my noble friend whether he will take this Question back for further consideration as it does imply amendments to employment law which may cause considerable inhibition as regards the recovery of the economy?

[Lord Freud]

My Lords, clearly, that is a mixed question from my noble friend. I will look very closely at the optimal way of getting disabled people to take a full part in the economy of this country. I will certainly look very hard at that issue.

[Lord Morgan]

My Lords—

--- Later in debate ---

[Lord Addington]

My Lords, I draw the House’s attention to my declaration of interests. Can the Minister give us some idea how successful Remploy has been in making sure that people who work in its factories find jobs in the outside world, as this is probably the ultimate test of how good it is? If he can give us an assurance in that regard, many of these problems will be seen in the correct light.

[Lord Freud]

Yes, my Lords, I have the up-to-date data for the voluntary redundancy programme which took place in 2008. Of the people who chose to look for re-employment, there was a 90 per cent success rate in getting them jobs.

[Lord Morgan]

My Lords, we have been considering this properly from the point of view of the workers in Remploy. The other side, of course, is the advantages to business and productive industry. I have in mind industries, particularly printing and the industries connected with publishing, where Remploy workers have unique skills. Should we not seek to retain them?

[Lord Freud]

My Lords, that is precisely the point. Where there is a viable business proposition we would expect social enterprise or other forms of enterprise to pick up those units, make them viable and keep them viable into the long term on a sustainable basis.