Over 1750 disabled people are facing redundancy from Remploy after the government announced plans to slash its subsidy for the company.
Thirty six of the 54 factories run by Remploy are facing closure on the grounds that they are not commercially viable, after ministers announced they were shifting the government’s £320m budget for disability employment services out of directly employing people.
This means 1,752 disabled people are at risk of compulsory redundancy from Remploy factories, including 208 whose factories closed in 2008 but who were kept on Remploy terms and conditions.
Remploy is due to consult on the future of the other factories and its employment support business.
The changes have been announced in response to a government-commissioned review by Liz Sayce, which called for the £320m annual budget for specialist disability employment services to be moved out of sheltered employment into supporting people into jobs.
The government also accepted Sayce’s recommendation to increase funding for Access to Work, which provides to help people gain or retain jobs, with funding rising by £15m from 2012-15. Along with other efficiencies, this would help create 8,000 jobs, the Department for Work and Pensions claimed.
It said Remploy factories lost £68.3m last year.
Former Remploy staff’s battle to find mainstream work