Remploy is funded by Government, which currently subsidises each disabled employee in a Remploy factory by (on average) £20,000. This is because many of the 83 factories are not economically viable (partly because manufacturing has declined).
It is not a question of ‘either’ sheltered employment ‘or’ open employment; but a question of the balance between the two. At present the lion’s share of Remploy’s budget goes on factories, set up after the 2nd world war at a time when a) factory work was widely available and Remploy factory experience equipped people for Britain’s labour market and b) no one considered disabled people going straight into mainstream employment. Times have changed.
The resource made available to Remploy (well over £100 million per year) needs to be spent in the most effective way for disabled people. For the £20,000 it takes to subsidise one person in a factory, Remploy could support four disabled people to get and keep ordinary jobs. RADAR represents the interests of disabled people overall – including all those additional people who could benefit from Remploy resources if they spent them supporting more disabled people to work in open employment.
The Remploy model of subsidised employment is not sustainable in its current form.