The Remploy factories have closed, but the pain continues

The media moved on, but the people who used to be employed by the charity Remploy are still suffering, writes Alan White.

It’s odd, really, how little coverage the closure of Remploy factories has been getting. The factories, we’re reminded, operated at a loss: but you’d think even the most pitiless right wing axeman would be a bit shaken by the thought of 3,500 of the most vulnerable people in our society losing their jobs, and all the things that go with them – routine, an income, a sense of self-worth.

Oddly, the paper that’s been most strident in its support for the workers has been the Sunday Express, which has expressed outrage that its campaign has “fallen on deaf ears in Downing Street”. There’s been little else of note. Maybe the media bought Iain Duncan Smith’s claim that the workers just used to “sit around drinking cups of coffee.” Here’s another possible reason: you’ll have noticed that some us hacks have come to the conclusion that the DWP’s approach to statistics is, well, somewhat creative. So when it put out the line that: “Almost half of the ex-Remploy factory workers – around 450 disabled people – who have taken up the Government’s employment support package have found work or are in training,” we probably should have paid closer attention.

It’s rather like when I claim I’ve only had two pints after stumbling in on a Friday night: literally true, but the bigger picture (e.g. the eight gin and tonics that followed) is liable to get me in trouble. At the time of the claim, the figure ignored 500 plus people who retired or did not take up the employment support package. Of the remaining 1,000 people, 240 were doing training and just 180 were in employment. As the figures stand now, of the 1,500 people laid off in the last round of closures, the DWP is aware of 351 who have managed to find new jobs.

But it would be wrong to point the finger solely at the Coalition. The first round of closures actually began in 2008 under Labour, when 1,600 workers were given the boot. Of this group, the DWP is aware of under 200 who found new jobs. We’d heard little from those who’d not found employment until yesterday, when Radio 4’s Face the Facts managed to track them down. Their testimonies were rather heartbreaking, and you can read some of them here. Unemployment is a stressful, ghastly experience at the best of times. One can only imagine the toll it took on these people.

That said, the factories were losing money. In fact, the decision to close them was the result of a review by Liz Sayce, chief executive of Disability UK. She came to the conclusion that there would be a human cost whatever conclusion she reached, since the failing factories were costing money that could be spent on those unemployed or who were losing jobs elsewhere and needed support.

Remploy closures were the least bad option in her view. But it appears, given her recent comments on the aforementioned Radio 4 programme (“the Government needs to go much further and faster [in providing support]”), she was let down. Admittedly, more people have come forward for employment support under the Coalition - but of course this isn’t the same as being in a job.

And there’s an interesting little exchange in Hansard from March 4th:

Jim Sheridan: To ask the Secretary of State for Work and Pensions with reference to the statement of 7 March 2012, on employment support, when he plans to allocate £8 million to help ex-Remploy staff find work or access benefits; and if he will make a statement. [145250]

Esther McVey: We have already started to use the £8 million that we made available to fund the delivery of a People Help and Support Package across Great Britain. Through this package, support is available for individuals to access for up to 18 months following redundancy to help them make the transition from working at Remploy to mainstream employment.

Right. So what’s become of this £8m? Private Eye has cited figures from the Office for Disability Issues which shows most has been spent on projects to get people involved in unpaid volunteering, work experience or coffee mornings. It’s something, but it’s not work: and above all, that’s all these people want.

But there’s another aspect to this story which is, in its own way, just as disturbing – and this is the sketchy manoeuvring surrounding the closure of a wheelchair factory in Glasgow, currently being investigated by the National Audit Office. The story, spelled out in these minutes, is extremely complex –  but the bare facts are these: the company to which the Remploy factory was sold, R Healthcare, was revealed to have been handed its sales and marketing operation last year, long before the factory’s closure was announced.

According to a rival bidder, Green Tyre in Middlesbrough, this made it all but impossible to tender for the factory. Green Tyre wanted to save the workers’ jobs - R Healthcare closed the factory down. In short, it looks suspiciously like Government-backed asset stripping. When questioned on this, Esther McVey has said that “If people have evidence they want to come forward with, then they should, via the right paths” - i.e. don’t start crying to the media. We wait to see what the National Audit Office finds. If the claims of impropriety stand up, it might lead to further questions over the fate of other factories: a final sting in this sorry little tale.

Former Remploy workers protest in April 2012. Photograph: Getty Images

Alan White's work has appeared in the Observer, Times, Private Eye, The National and the TLS. As John Heale, he is the author of One Blood: Inside Britain's Gang Culture.

Photo: Getty
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What's going on in Northern Ireland?

Everything you need to know about why Northern Ireland is heading for an early election - and how it all works. 

Northern Irish voters will elect a new government, just seven months after the last election. Here’s what you need to know.

It all starts with something called the Renewable Heat Incentive (RHI), a scheme designed to encourage businesses to switch to renewable sources of heating, by paying them to do so. But the plan had two flaws. Firstly, there was no upper limit to how much you could receive under the scheme and secondly there was no requirement that the new heaters replace the old.

That led to businesses installing biomass boilers to heat rooms that had previously not been heated, including storage rooms and in some cases, empty sheds.

 The cost of the scheme has now run way over budget, and although the door has been closed to new entrants, existing participants in the scheme will continue collecting money for the next 20 years, with the expected bill for the Northern Irish assembly expected to reach £1bn.  

The row is politically contentious because Arlene Foster, leader of the Democratic Unionist Party, and the First Minister of Northern Ireland, was head of the Department for Enterprise, Trade and Investment (DETI) when the scheme was rolled out, putting her at the heart of the row. Though there is no suggestion that she personally enriched herself or her allies, there are questions about how DETI signed off the scheme without any safeguards and why it took so long for the testimony of whistleblowers to be acted on.

The opposition parties have called for a full inquiry and for Foster to step down while that inquiry takes place, something which she has refused to do. What happened instead is that the Deputy First Minister, Martin McGuinness, resigned his post, he said as a result of frustration with the DUP’s instrangience about the scheme.

Under the rules of the devolved assembly (of which, more below), the executive – the ministers tasked with running the government day-to-day must be compromised of politicians drawn from the parties that finish first and second in the vote, otherwise the administration is dissolved.  McGuinesss’ Sinn Fein finished second and their refusal to continue participating in the executive while Foster remains in place automatically triggers fresh elections.

Northern Ireland uses the single transferable vote (STV) to elect members of the legislative assembly (MLAs). Under STV, multiple MLAs are elected from a single constituency, to more accurately reflect the votes of the people who live there and, crucially, to prevent a repeat of the pattern of devolved rule under first-past-the-post, when prolonged one-party rule by the Unionist and Protestant majority contributed to a sense of political alienation among the Catholic minority.

Elections are contested across 18 seats, with five MPs elected to every seat. To further ensure that no part of the community is unrepresented in the running of the devolved assembly, the executive, too, is put together with a form of proportional representation. Not only does the executive require a majority in the legislature to pass its business, under a system of “mandatory coalition”, posts on the executive are allocated under the D’Hondt system of proportional representation, with posts on the executive allocated according to how well parties do, with the first party getting first pick, and so on until it comes back to the first party until all the posts are filled.

Although the parties which finish third and lower can opt out of taking their seats on the executive and instead oppose the government, if the first and second party don’t participate in the coalition, there is no government.

As it is highly unlikely that the DUP and Sinn Fein will not occupy the first and second places when the election is over, it is equally unlikely that a second election will do anything other than prolong the chaos and disunity at Stormont. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.