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.

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.