Category Archives: Communities

Remploy factory closures are shameful

Liam Byrne MP, Labour’s Shadow Work and Pensions Secretary, responding to news that Ministers are set to close at least 10 more Remploy factories and a further five have been put at risk, said:
 
“This is a shameful act from a contemptuous government. A day after the Autumn Statement in which the claimant count was revised up, David Cameron and Iain Duncan Smith have thrown out of work almost 1,000 disabled workers.

“Iain Duncan Smith didn’t even have the nerve to come to Parliament to tell MPs face to face. Instead he chose to hide in his office while he was putting disabled workers out of a job. He ought to be ashamed of himself.

“Iain Duncan Smith is the minister who said that Remploy workers did nothing better than sit around drinking cups of coffee. Now, in a final act of contempt he has sacked almost all of them, despite knowing that 90% of those who lost their jobs in the last closures are still out of work.
 
“We say loud and clear this round of closures must stop. David Cameron’s government is failing to get disabled workers back into jobs. The Work Programme is worse than doing nothing. This closure plan must stop until there’s a plan that works to get disabled workers back into jobs.”
 
Ends

Editor’s Notes:
 
1. Remploy phase two – A day after the Autumn Statement in which the claimant count was revised up, the Government is throwing nearly 1,000 disabled workers on the dole.
 
Ten factories are proposed for closure. These are Clydebank, Burnley, Dundee, Heywood, Huddersfield, Norwich, Portsmouth, Porth, Stirling and Sunderland.
 
Three factories face significant restructuring. All staff are at risk of redundancy. These are Neath, Blackburn and Sheffield.
 
Two factories are not saleable as a going concern. All staff are at risk of redundancy. These are Leven and Cowdenbeath.
 
Three factories are safe. These are Birmingham, Coventry and Derby.
 
2. Today, Labour revealed that in the communities where factories are earmarked for closure there are 66% more people chasing every job than the national average

The Government’s much vaunted work programme secured just 1.3 per cent of people on disability benefits into work.
Attached Claimants per vacancy in constituencies affected

3. In July Maria Miller guaranteed this Government would more disabled people into work:

John McDonnell (Hayes and Harlington) (Lab): The Minister referred to this as a difficult decision, but for the Remploy workers watching this debate it is a tragic decision. She has just mentioned the numbers who left work last time who have never been employed since. How many can she guarantee will be in secure employment in 12 months’ time?
Maria Miller: I can guarantee that by using the money differently we can help more disabled people into work. As a result of today’s measure [adding £15 million to Access to Work], some 8,000 disabled people can get into work who would not have had that support otherwise.
http://www.publications.parliament.uk/pa/cm201213/cmhansrd/cm120710/debtext/120710-0001.htm

4. 1.3% of ESA claimants referred on to the Work Programme found a job lasting more than six months.

This rate is outcomes divided by referrals:

Outcomes are for ESA volunteers, New ESA claimants, ESA ex-IB claimants over the period June 2011 to May 2012. See Table 1.1: http://statistics.dwp.gov.uk/asd/asd1/work_programme/wp_release_nov12.pdf?x=1

Referrals are for the same payment groups over the same period (See Table 1.1 in the annex)
 
5. The Written Ministerial Statement will appear here (copied in full): http://www.parliament.uk/business/publications/hansard/commons/todays-written-statements/

Written Ministerial Statement
 
Thursday 6 December 2012
 
THE DEPARTMENT FOR WORK AND PENSIONS
 
Disability Employment
 
The Minister for Disabled People (Ms Esther McVey MP): I would like to make a statement on Remploy to update the House on the next steps in the reforms that my predecessor as Minister for Disabled People, the Rt Hon Member for Basingstoke, set out in this House on 10 July 2012.  
 
The Remploy Board is today making make an announcement, and is quite rightly informing all those employees whom it affects.
 
The Remploy Board has now concluded its assessment of the Stage 2 businesses. It has been working closely with the Department for Work and Pensions and independent business analysts to explore in detail whether the remaining factory based businesses (Automotive, Automotive Textiles, E-Cycle, Frontline, Furniture, Marine and Packaging), CCTV contracts and Employment Services could viably exit government ownership and if so, how this could be best achieved.  
 
Further work is being undertaken on Employment Services and a separate announcement will follow when a decision has been made.
 
The Government has decided to confirm the exit of Stage 2 factories and businesses, and the Remploy Board has today announced the results of its analysis and its proposals for a commercial process for stage 2 factory businesses and the CCTV business.
 
The Automotive business operating from factories in Coventry, Birmingham and Derby is considered by Remploy to be a viable business. It has the potential to successfully move out of Government funded support as a going concern. Remploy will now move to market this business , there is no proposal to close this business and staff at these sites are not formally at risk of redundancy.
 
The Automotive Textiles operation at Huddersfield is not commercially viable and the factory there is proposed for closure. All staff in this business are now at risk of redundancy.
 
The Furniture business based in Neath (Port Talbot), Sheffield and Blackburn has the potential to be commercially viable but would require significant restructuring consideration and downsizing of its operations. Remploy will market this business as a prospective going concern, while recognising that the current trading position of the business may ultimately result in no viable bids being received and that there may therefore be consequential redundancies and factory closures. All staff in this business are now at risk of redundancy.
 
The Marine Textiles business (based at Leven and Cowdenbeath) has an established market position and might attract commercial interest. Remploy Management will discuss any potential opportunities for a commercial exit with its current distributor and any other parties who express an interest. However the business currently makes significant losses and is not saleable currently as a going concern. The employees of the Marine Textiles business are therefore at risk of redundancy.
 
The CCTV business has the potential to become a viable business or series of businesses and successfully move out of Government control. Remploy will now discuss with the 27 organisations who have let contracts to Remploy their intentions and the opportunity to market this business and its 27 contracts as a going concern. If the business can be sold it may result in potential TUPE transfers.  In the event that it cannot be sold compulsory redundancies will be made and all employees in the CCTV business are therefore at risk of redundancy.
 
In addition to Automotive Textiles, 3 other Remploy businesses are not commercially viable or have little realistic prospect of being sold as going concerns. These are E-Cycle (based at Porth and Heywood), Frontline Textiles (based at Dundee, Stirling and Clydebank) and Packaging (based at Norwich, Portsmouth, Burnley and Sunderland). These factories are now proposed for closure with all the staff working there and at the associated Business Offices at risk of redundancy
 
As a means of reducing the number of potential job losses Remploy will, from today commence a commercial process and invite expressions of interest from any individuals or organisations who would like to buy all or parts of these businesses or sites proposed for closure. They will also be inviting expressions of interest for the assets associated with these sites, although “going concern” business sales will take precedent over asset sales.
 
As a result of these proposals a total 875 employees including 682 disabled employees in the Automotive Textiles, E-Cycle, Frontline Textiles, Furniture, Marine textiles, Packaging and CCTV businesses are being placed at risk of compulsory redundancy.
 
If a successful sale or transfer of ownership is possible and such sale or transfer falls within the provisions of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), employees employed in or assigned to the relevant businesses will transfer to the new owner under TUPE. However, if TUPE does not apply, the number of employees who may transfer to the new business cannot be guaranteed as this will be a matter of negotiation between the bidder and Remploy.
 
It is important to note that no final decisions have been made about the factory closures or about redundancies in Stage 2 factories or businesses at this time.
 
I expect the process for exits or closures to have been completed by October 2013.
 
To encourage bids that maximise the continued employment of disabled people, the Department for Work and Pensions will offer a three year tapering wage subsidy totalling £6,400 for each eligible disabled member of staff. In addition Remploy will also fund professional advice and support worth up to £10,000 for employee led bids. This is in line with the offer of support in Stage 1.
 
Remploy’s Automotive business will continue to operate business as usual. There is no proposal to close this business at this stage.
 
Remploy Employment Services business will also continue to operate business as usual.
 
The Government has made £8 million available for 18 months to fund the delivery of a People Help and Support Package across the UK for any disabled individuals who are made redundant.  This tailored support from the People Help and Support Package includes access to a Personal Case Worker to help individuals with their future choices and a personal budget for additional support.
 
We will use the expertise of Remploy’s Employment Services which, despite difficult economic times over the last two years, has found jobs for around 50,000 disabled and disadvantaged people.
 
We are working with Remploy Employment Services, local and national employers, and the Business Disability Forum (BDF) to offer targeted work opportunities for disabled people. This could include guaranteed interviews, work trials, industry sector specific training, pre-application training (including mock interviews), on the job training and employer training in how to make adjustments for particular impairments.
 
We have also set up a Community Support Fund to provide grants to local voluntary sector and user-led organisations to run a variety of projects to support disabled Remploy employees and their families.
 
Of the 1,349 disabled people affected by the factory closures, 875 have expressed an interest in returning to work and are actively using the support package, so the latest results mean that just under 15% of those are now in work. It is one of our top priorities to maximise employment opportunities for the Remploy factory leavers.
 
This is an ongoing process, and as it develops, I commit to keeping this House updated on the status of the business plans going through to the next stage. I will provide a further update on progress in the New Year.

 

My speech to the House on this Government’s attack on Britain’s strivers.

 Can I thank the minister for advance sight of the statement

I think we got a pretty good idea of what he was going to say.

Pensions

There is welcome news for Britain’s pensioners

When we were in office we lifted a million pensioners out of poverty and increased pensioner incomes by 40%

Today, the minister has confirmed that pensions are to be uprated by 2.5%

We welcome that and we look forward to the Pensions reform proposals which are acquiring mythical status.

We hope they prove the minister makes a reality of his white paper soon.

But while the news for our pensioners is welcome, the news for working people is a disaster.

Buried in the small print of yesterday’s budget is the brutal truth that this was a budget for unemployment.

  • The Cx has throttled the recovery
  • The SOS for CLG is cutting hardest the places where jobs are fewest
  • The work programme is worse than doing nothing
  • The OBR is revising up the claimant count for 340,000 by 2016

This is a budget that puts up unemployment

And the bill for that is large.

The dole bill is £0.9bn higher in 2015-16, and is cumulatively higher by £1.6bn over the next three years.

The bill for failure is not coming down but going up

And now we learn from the minister that it is working people who are going to pay the price.

We already have 6.1m working people work in poverty

Buried in the HMT Policy Costings, is the news that the 1% squeeze will save £6.7bn by 2016-17.

The resolution foundation tell us 60% of the cuts will fall on working households

Provisional analysis by the library shows just 23% is from JSA, ESA and IS

The rest is from tax credits, maternity allowance, maternity pay, sick pay, tax credits and housing benefits which of course is claimed by working people

In fact its claimed by the strivers and battlers that the PM promised to stand up for at his conference.

I hope we won’t have any nonsense about the virtue of raising personal allowances

- wiped out by the breath-taking scale of the raid on their tax credits

- £14 billion is being taken away from working families.

This budget steals another £5bn off tax credits by 2016-17.

- And UC, has been hacked into before its even started

That is a price that is going to be paid by 6,000 families in the minister’s constituency

They are no doubt delighted with him.

So, perhaps he can tell us….;

What is the value of this squeeze for working peoples’:

Maternity allowance; SSP; maternity pay, paternity pay and statutory adoption pay?

And What is the value of this squeeze for working peoples’:

Working Tax credit and child tax credit?

 


 

Second:

During the second reading of the Child Poverty bill, the minister said that he gave up being an even-handed academic, because I quote: ‘he was appalled at what was happening in our country to the most vulnerable people’. He attacked the Conservative for ‘standly idly by’ and watching Child Poverety reach record levels.

Well, before the Autumn Statement, the IFS said 400,000 children will be plunged back into poverty by 2015 because of the government’s plans.

How many more children will fall into poverty as a result of the changes announced?

 Third:

Will he please justify, how Cx can press ahead with a £3 billion tax cut for the 8, highest earners worth £107K for the 8,000 earning over £1M

When 6,000 families in his own constituencies are going to lose out?

 

Conclusion.

Mr Speaker, this is a budget that up the claimant count, put up the cost of failure and is asking working people to pay the price.

 

 

Government can’t hide the fact they’re giving a £40,000 tax cut to millionaires yet wiping out a decade of progress tackling child poverty in one parliament

Liam Byrne MP, Labour’s Shadow Work and Pensions Secretary, responding to news that the Government are launching a consultation on measuring child poverty, said:

 

“It doesn’t matter what camouflage they wear, the Government can’t hide the fact they’re giving a £40,000 tax cut to millionaires yet wiping out a decade of progress tackling child poverty in just one parliament.

 

“If Ministers move an inch from the Child Poverty Act they supported in opposition, we will know they are about to abandon the fight against child poverty whilst giving an enormous tax cut to the richest in society.”

 

 

People are being hit hard in Corby and East Northamptonshire by two years of failed Tory policies

Following his visit to Corby and East Northamptonshire to campaign for Labour’s Andy Sawford in the Corby and East Northamptonshire by-election, Liam Byrne MP, Labour’s Shadow work and pensions secretary said:

“The Tories promised so much but have clearly failed to deliver. Two years of failed Tory policies are hitting people here in Corby and East Northamptonshire hard.

“Unemployment has risen and the number of young people out of work for over a year has soared.

”What people in Corby and East Northamptonshire need is a local champion who will fight to bring jobs and investment to the area and who will campaign to protect local services.

“With his campaign to save services at Kettering General Hospital and by backing a tax on bankers’ bonuses to fund a jobs guarantee for young people, Andy Sawford has shown people that there is a clear choice in this by-election.

”Do people want a local champion like Andy Sawford who is clearly on their side or another cheerleader for Cameron’s failed policies.”

 

 

Labour warns of spiralling homelessness bills as DWP botches reform

Labour today accuses the Government of botching reform of Housing Benefit as a new National Audit Office report warned that homelessness bills might spiral.

Liam Byrne MP, Labour’s Shadow Work and Pensions Secretary, said:

“Today’s report is fresh evidence of the chaos at DWP. Reform to Housing Benefit is being so mismanaged that even councils like Tory-run Westminster are warning of increased use of inappropriate bed and breakfast accommodation.

“David Cameron needs to get a grip and introduce the crucial safeguards we proposed to stop evictions unless someone can be offered somewhere else to live. Unbelievably nearly half of councils now face a housing shortfall that is getting worse.

“Incredibly the National Audit Office tells us that ministers haven’t even bothered to set up any kind of systems that might flag things going wrong – or whether any savings are being made.”

Ends

Editor’s Notes:

1. The National Audit Office warns:

·        Downward pressure on rents or increased employment would mitigate the impact, but on current trends 48 per cent of local authority areas in England could face shortfalls by 2017 (paragraphs 3.3 and 3.4). (Paragraph 1.21)
·        “The introduction of the CPI into the calculation could lead to shortages in many local authority areas of private rented accommodation with rents at or below Local Housing Allowance rates.  (Para 1.21)
·        Reforms will lead to higher demand for Discretionary Housing Payments (Para 1.22)
·        It is not clear how the current level of funding for Discretionary Housing Payments (£390 million) has been determined or whether it is likely to be sufficient for local authorities in tackling the impacts of reforms. (Para 2.5)
·        The Department does not have the systems to provide a clear statement of the total monetary change in benefits.(Para 1.25)
·        Inappropriate use of bed and breakfast is forecast to rise (as warned by Westminster Council – p20 fig 6)
·        Up to a third of tenants say they’ll fall into arrears (Para 1.27)

2. The report appears to confirm warnings in a leaked letter from the DCLG Secretary, Eric Pickles’ office last year which warned changes may cost more than they save.

In January 2011 Eric Pickles’ Private Secretary wrote to David Cameron’s office at No 10 confirming that it is possible to quantify the impact of the benefit cap. The letter specifically warned that their modelling could see 40,000 people homeless and the policy could cost more than it saves.

“Our modelling indicates that we could see an additional 20,000 homelessness acceptances as a result of the total benefit cap. This on top of the 20,000 additional acceptances already anticipated as a result of other changes to Housing Benefit’.”
Eric Pickles’ letter published in the Observer, 03 July 2011: http://www.guardian.co.uk/politics/2011/jul/02/full-text-letter-eric-pickles-welfare-reform

 

Remploy Factories proposed for closure

Factories Proposed for Closure

Aberdare
Aberdeen
Abertillery
Acton
Ashington
Barking
Barrow
Birkenhead
Bolton
Bridgend
Bristol
Chesterfield
Cleator Moor
Croespenmaen
Edinburgh
Gateshead
Leeds
Leicester		 Manchester
Merthyr Tydfil
Motherwell
Newcastle-on-Tyne
North London
North Staffs
Oldham
Penzance
Pontefract
Poole
Preston
Southampton
Spennymoor
Springburn
Swansea
Wigan
Worksop
Wrexham
 

The Future of Remploy

The Welfare Reform Bill has been law for just a week, and the government’s first callous act is to throw hundreds of disabled people straight on the dole.

Two-thirds of Remploy factories will now be shut and their workers, thrown into the market-place with just £2,500 to help them get another job, with no guarantees about the factories that are briefly spared.

It is frankly outrageous that the government has tried to smuggle out the news on the day of the Parliament’s celebration of Her Majesty’s Diamond Jubilee.

We will be demanding that ministers are summoned to the House of Commons to explain themselves.

Quite simply this is the wrong plan at the wrong time. Unemployment is going through the roof. Back to work schemes are sinking under the weight of spiralling unemployment. And the government thinks this is a good time to sack disabled workers.

In 2007, Chris Grayling, said in Parliament;

‘Let me assure Remploy and its employees that the next conservative government will continue the process of identifying additional potential procurement opportunities for them and the public sector workforce’.

Now we know the truth.  People with disabilities will never trust a word they say again.

Labour has demanded answers to ten key questions:

1.     When will the factories start closing?

2.     Why are workers being given only 90 days to plan their future?

3.     How many staff will be made compulsorily redundant?

4.     Will the government guarantee that Remploy’s budgets will now be ring-fenced to help people with disabilities back to work?

5.     What is the future of the Remploy company? Is it the government’s policy to in effect close it down?

6.     Specifically, what is the support that will be given to workers to get another job?

7.     What are the total costs of shutting down the Remploy factories, including redundancies and costs of settling suppliers

8.     What are the redundancy terms for workers?

9.     Will workers’ rights to pensions they have paid for be protected?  

10. Why did no minister offer to come to the House of Commons to make a statement?

 

 

Notes: 

Labour has been consistently pressing the government for action on this. Anne McGuire Westminster Hall debate

http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm111215/halltext/111215h0001.htm

Peter Hain’s statement on the future of Remploy was made on the floor of the House. Chris Grayling’s  said in Parliament; ‘Let me assure Remploy and its employees tht the next conservative government will continue the process of identifying additional potential procurement opporiutunieis for them and the public sector workforce’. http://www.publications.parliament.uk/pa/cm200708/cmhansrd/cm071129/debtext/71129-0006.htm

 

My visit to Newham

Workplace is making a massive difference in Newham.

It was a massive pleasure to spend the morning with mayor Robin Wales and his team, looking at the incredible work Newham is leading to get people back to work. Over the last year the Mayor’s Employment Project has helped get 5,000 local residents back into work – half of them long-term unemployed.

Three key lessons stand out:

  • First, good local councils like Newham can make the world of difference bringing together local businesses, skills providers, and local residents. No one else can bring people together in this way: that’s why DWP’s work programme providers should be working much more closely with councils.
  •  Second, local councils could do with a lot more influence over skills budgets – that was the direction Labour was setting in office. But the idea isn’t now being pursued.
  • Third, its very clear local councils need more power to tackle bad landlords. The stories I heard about the abuse uncovered by Newham was shocking. Getting people into work – and keeping people in jobs – means helping make sure there is a stable, safe, secure home to go back to each night.

Finally, we couldn’t resist a pop-in to Newham town hall to pay a little homage to the memory of Keir Hardie, elected here as the first Labour MP, and the home not only of the first Labour council – but the first Labour mayor. Inspiring stuff.

Kier Hardie, an inspriation

 

Eliminating ‘power failures’: a new agenda for tackling inequality

You can read the chapter I’ve written for the Progress ‘Purple Book’ by clicking the link below. Labour achieved a huge amount in Government to tackle inequality, but there is still a vast amount to do. I’ve set out my ideas about how welfare reform based on my experience as a Labour Minister, and my work in Hodge Hill.

Eliminating ‘power failures’: a new agenda for tackling inequality

 

93,000 people give up on looking for work

Latest unemployment figures reveal that almost 100,000 people gave up looking for work during the last quarter – as today’s job numbers confirm the continued weakness of the the economic recovery signalled by the Q4 fall in growth.

Employment fell by 68,000 and unemployment rose by 44,000 in the quarter to December. But perhaps even more worrying is that the number of people classified as economically inactive – that is neither in work nor looking for work – rose by 93,000. In the last two years this number has risen by 300,000 to reach 9.4 million.

The 93,000 rise includes 49,000 people choosing to retire early – structurally reducing the potential for tax revenues and increasing the costs of an already ageing society. The number of people economically inactive because of early retirement has now reached 1.57 million, the highest figure since comparable records for this series began in 1993.

This, combined with increases in the number of people on inactive benefits, will make the deficit harder to reduce.

While the vast majority of people who lose their job do manage to find a new one, people who give up looking for work are much less likely to ever re-enter the labour market. Levels of economic inactivity spiralled during the 1980s and 1990s recessions (including a trebling of the numbers on incapacity benefit) with huge social, economic and human costs.

When the government publishes its Welfare Reform Bill it must include action to keep people in the labour market, provide work for people and prevent further disastrous rises in inactivity.

Other facts:

  • The claimant count has now been essentially flat since May, despite a period when there was growth. This means claim durations are rising and therefore the likelihood of people reentering the labour market are falling.
  • In the quarter to September, private sector employment fell by 33,000, with no offsetting rise in private sector employment.