16 March 2006 - McGuire Launches Review of Remploy
A review of Remploy Ltd will look at how to open up more employment opportunities for disabled people, announced Minister for Disabled People Anne McGuire today.
The review will look at how Remploy operates and suggest ways to both improve the opportunities for the 9,000 disabled people it presently supports and provide better value for money. It follows the publication of a report by the National Audit Office (NAO) last autumn which recognised that some of Remploy’s factory businesses were not financially sustainable.
Launching the review Anne McGuire said:
“Since its creation in 1945 Remploy has made a major contribution to improving employment opportunities for disabled people – but 60 years on it needs to change. As we break down the barriers to equal employment opportunities for disabled people, we need to give people the chance to be integrated into mainstream workplaces wherever possible.
“Last autumn the National Audit Office spelt this out very clearly – pointing out that the Remploy factory business cost £18,000 per person where as other areas such as the Interwork programme cost just £3,400. Progressions to unsupported employment from Remploy factories in 2004/5 were 10. Progressions to unsupported employment from Remploy Interwork in 2004/5 were 1,673.
“The Department for Work and Pensions (DWP) has continued to increase funding for Remploy year on year but, as the NAO point out, this is just not sustainable. It makes no sense for costs to go on spiralling without producing the best results for disabled people.
“We are looking for independent expert advice on the options to enable Remploy to help more disabled people get into work. To ensure that proposals meet the employment needs of disabled people I am pleased to announce that Stephen Duckworth of 'Disability Matters' is to be part of the review team.”
The review will be put out to tender to independent expert advice and will be seeking the views of key stakeholders.
Notes to editors
- The recently published Green Paper "A new deal for welfare: Empowering people to work" set out the DWP’s intention to reform the benefit system so that it better supports disabled people.
- Remploy currently supports nearly 9,000 disabled people, including those employed in their factory network and those supported on placements with other employers, through the Interwork service.
- The recent National Audit Office report – ‘Gaining and retaining a job: the Department for Work and Pensions’ support for disabled people’, contrasted the effectiveness of Remploy’s Interwork service with the poor value for money offered by Remploy factory provision and recommended that the Department “re-engineer the profile of the Remploy business to improve overall value for money and ensure support is available to help individuals find alternative employment if necessary”.
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