Select Committee on Public Accounts Sixth Report


Conclusions and Recommendations

1.  There are 6.7 million disabled people of working age, of whom around 50% are in employment. Barriers preventing many disabled people from taking up a job include employer attitudes and misconceptions, lack of awareness of the support that is available, health conditions, local labour market conditions and a lack of adjustments to work premises. In addition, disabled people may need additional support to overcome a lack of confidence and self-belief from having been out of work.

2.  The Department has a confusing suite of six programmes, which have grown up over the last 60 years. The distinction between the different programmes and schemes is sometimes artificial and the current review of provision should pinpoint opportunities for simplification and rationalisation. An approach based around a more flexible menu of different types of support and advice would be more suitable. This tailored approach would better reflect the very varied circumstances of disabled people and would ensure a more streamlined suite of services.

3.  Poor management information makes it difficult to determine whether the programmes deliver value for money. Except for the New Deal for Disabled People, the Department has patchy and inconsistent cost and outcomes data for its programmes. There is also limited information available about clients, making it hard to establish whether programmes are meeting the needs of different groups. The Department should gather detailed information on what has been spent on each programme and scheme, what has been paid to each provider and what the Department has obtained for the expenditure.

4.  The quality of service provided to customers varies considerably across the country. In the Workstep programme for example, between 2001 and 2005, one third of the 200 or so providers with clients in supported employment have not progressed a single person.[2] The Department should stipulate minimum standards for the services provided, adopt a risk based inspection regime of the organisations providing it and follow up rapidly on poor performance, including withdrawing contracts for continued poor performance.

5.  The Department's attention has focussed on helping people into work rather than retaining a job. Most people who become disabled do so as adults and are likely to be in employment when they become disabled. The Department should increase the attention given to helping people stay in work. For example, Disability Employment Advisers could be expected to spend a set proportion of their time on retention activities, which would help to save on disability benefits and reduce demand for more expensive work programmes.

6.  Some employers have misconceptions about the difficulties of employing disabled people. Research in 2004[3] suggested that one-third of employers considered employing a disabled person is a major risk. The Department should work with providers of training to challenge the misconceptions, for example by linking up employers experienced in employing disabled people with those who are not through workshops and awareness raising events, highlighting the support available to employers.

7.  The Department contracts with hundreds of providers of services across the country. It could improve the quality and price of the services it purchases through improved benchmarking between the numerous providers, more effective competition and better use of its bulk purchasing power to secure better deals. It should also specify a minimum standard for performance across all providers, for example, in terms of availability of training and customers having development plans in place.

8.  The Department's review of Remploy is currently being considered by Ministers and is a good opportunity to assess how to update this vital service in the interests of disabled people. A highly supportive environment is the only appropriate option for some people and Remploy has provided unique opportunities for thousands over many years. The current review of Remploy should safeguard this achievement when considering whether it is necessary to alter the profile of the business or the markets in which it operates, for example, to move from sectors in decline. It should also consider any unique circumstances facing the business, such as the cost of entering new markets, and the cost and quality of Remploy management. They should also take account of the views of those working within Remploy businesses.

9.  Remploy Interwork has proved successful at placing disabled people with mainstream employers. Remploy Interwork's long association with Remploy businesses, including factories, has enabled it to develop a unique understanding of the employer's perspective in taking on disabled people. Any reorganisation of Remploy should safeguard this valuable knowledge so that Remploy Interwork's performance is sustained.


2   C&AG's Report, paras 4.12-4.13 Back

3   Roberts et al (2004) Disability in the Workplace. Research for Department for Work and Pensions

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