Remploy

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 29 June 2009.

Alert me about debates like this

Photo of Madeleine Moon Madeleine Moon Labour, Bridgend 2:30, 29 June 2009

What estimate she has made of the cost to the public purse of Remploy's operations in the latest period for which figures are available.

Photo of Jonathan R Shaw Jonathan R Shaw Minister of State (Disabled People), Regional Affairs, Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions

The last available figures, which are for the financial year ending March 2008, show that Remploy received £195.8 million of direct funding from the Department, comprising £145.8 million of grant in aid and an additional £50 million of modernisation payments to help with the restructuring of the company. Managing the level of funding for Remploy is one of the key aims of our modernisation plan, which was why we secured a £555 million modernisation fund over the five-year period.

Photo of Madeleine Moon Madeleine Moon Labour, Bridgend

I thank my hon. Friend for that reply. In the response to my parliamentary question 270816, Members were able to see that, over the last three years, Remploy's senior managers have claimed £4.3 million in bonus payments, including £1.7 million in last year alone. That is six times the amount of money paid out in bonuses in 2000-01. Given that Remploy is losing money, that factories have closed and that job numbers are falling, does my hon. Friend not agree that it would be more appropriate for no bonuses to be paid until Remploy is making money, not losing it?

Photo of Jonathan R Shaw Jonathan R Shaw Minister of State (Disabled People), Regional Affairs, Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions

I am grateful to my hon. Friend. She will know that there are two parts to Remploy: the enterprise operation that runs the factory of about 3,000 employees, and the employment services, which got more than 7,000 people into jobs last year. Part of the bonus programme was that those managers whose pay is about £30,000 got a bonus of about £5,000 for getting disabled people into work. Their pay and performance terms compare favourably with those of other companies or comparable organisations. The bonus scheme is for the company, but it needs to be seen in perspective, in the context of the overall organisation.

H

Another creative interpretation of events! As Mr. Shaw rightly says, there are two parts to Remploy, the newer being employment services, who’s sole purpose is to get disabled people into jobs and who are failing to meet commitments made to us ex Remploy factory employees. The bulk of the bonuses in question were paid to senior managers in the enterprise operation. These...

Submitted by Harry Manchester Continue reading

Photo of Bob Spink Bob Spink Independent, Castle Point

People who are disabled or who have special educational needs—very good people who want work—can suffer more than others in trying to find work during the recession, so what more can the Minister do to promote sheltered employment units in privately owned companies?

Photo of Jonathan R Shaw Jonathan R Shaw Minister of State (Disabled People), Regional Affairs, Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions

I am grateful to the hon. Gentleman for that question. He will be aware that we are doubling the access to work fund, which has seen some 44,000 disabled people into work. Using access to work as an indicator, we are not seeing any of those who benefit from the fund losing their employment. I am sure that he would also welcome the learning disability employment strategy, which I and the Minister of State, Department of Health, my hon. Friend Phil Hope, launched last week. The hon. Gentleman is quite right that despite the world economic downturn, we will continue to concentrate on helping disabled people get into work and stay in it.

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.