Disabled People: Employment

Lord Low of Dalston Excerpts

Monday 21st March 2011 Lords Chamber

[Lord Freud]

My Lords, I can categorically reassure the noble Baroness that there is no such plan as has been suggested by the unions; we are looking at a voluntary redundancy plan. The next stage of what happens to Remploy will depend on the review that Liz Sayce is conducting into disability employment programmes, which is due to report in the summer.

[Lord Low of Dalston]

My Lords, I recognise that only voluntary redundancies are being sought at this stage, but does the Minister not agree that Remploy’s failure to meet its financial targets is, at least in part, attributable to the Government’s failure to meet their commitment to put work into the factories through procurement and otherwise? Can he assure the House that the Government will redouble their efforts to fulfil their side of the bargain contained in the five-year funding agreement of 2007?

[Lord Freud]

My Lords, the Remploy business plan was designed by Remploy management. It has failed to achieve its targets because, in retrospect, it was wildly overambitious to expect that public procurement could go up by 130 per cent. The cost of subsidising a disabled person in a Remploy job has now reached £23,000 a year, compared with the success of Remploy employment services in putting a person into an independent job for a one-off cost of £3,400.