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UK – Government employment services company to be partly privatised

23 July 2014

Remploy, a Government-owned company that provides specialist employment services for people with disabilities and health conditions, is to be partly privatised, according to Employment Minister Esther McVey.

She announced a "significant stake" would be offered for sale to investors, resulting in a joint venture with employees holding "an interest" in the company. The shareholdings will potentially be held on the employees' behalf in a benefit trust.

In a written statement Ms McVey said: "This will give the company the opportunity for a partner or investor to help develop it to its full potential and help more disabled people get into work. This will provide the freedom and flexibility for the business to continue to grow and expand its mission by helping even more people find sustainable employment."

Ms McVey said the Department for Work and Pensions (DWP) would have a contractual arrangement with the new company to continue Remploy's national delivery of Work Choice and other departmental contracts and agreements, which are expected to be transferred as part of the process.

It will also ensure that the Remploy pension scheme continued to be funded and that the accrued benefits of members are protected.

Ms McVey’s statement advised: “Our key priority during this process will be to ensure that Remploy Employment Services becomes an independent, sustainable business, which continues to support disabled people in finding and remaining in employment.”

Further details are expected to be announced next week when the commercial process will be launched.

By March next year, it is estimated that since 2010 Remploy will have supported more than 100,000 disabled and disadvantaged people into work.