WIREDGOV

Uncertainty over financial commitment to supported businesses.

Enterprise Minister Fergus Ewing is urging the Department of Work and Pensions (DWP) to address the future of funding for businesses employing disabled workers.

Over the past two years the Scottish Government has supported businesses employing predominately disabled workers by launching of a new national framework agreement for supported businesses and setting up a supported business directory, as well as investing £2 million in a new supported business enterprise.

Currently supported businesses, which are companies where at least 50 per cent of the workforce is made up of disabled employees, also receive £2.9 million of income annually through DWP’s Workchoice programme. However, funding for the programme is soon to be reviewed.

Mr Ewing made the plea to DWP ahead of his opening speech at yesterday’s Parliamentary debate on building a stronger future for supported business.

Mr Ewing said:

“Scotland’s supported businesses play an important role in helping disabled people find sustained and fulfilling work opportunities, and often act as a stepping stone towards mainstream employment. Helping these businesses expand in a way that is commercially viable is crucial to both the employees and the Scottish economy.

“The uncertainty regarding DWP’s Workchoice funding is an ongoing challenge and I have written to DWP urging them to discuss the future of financial support given to supported businesses through Workchoice.”

Uncertainty around Workchoice funding follows on from the UK Government’s closure of Remploy factories in Scotland, which saw 270 workers with disabilities lose their jobs.

Mr Ewing added:

“Since April 2012 we have been working very hard to mitigate the effects of the UK Government’s closure of Remploy factories in Scotland.

“Earlier this year we invested £2 million along with Falkirk Council, in Haven PTS, a new company formed following the sale of Remploy. Haven PTS has recently secured a three-year contract to supply the Scottish NHS with nurses’ uniforms, worth up to £1.5 million per year.

“Over the past two years we have also launched a new national framework agreement for supported businesses and set up a supported business directory.

“However, more needs to be done. The best supported businesses operate on a commercial basis, producing high quality goods which meet market demand, while offering a supportive environment for their staff. Uncertainty around DWP funding could put the future of these enterprises into jeopardy.”

The debate will be closed by Public Health Minister Michael Matheson, who said ahead of the debate:

“Disabled people in Scotland who want to work deserve to receive support that will help them achieve this outcome. It is crucial that we continue to work across government to take every opportunity the help more achieve this.”

Notes To Editors

The Scottish Government debate on building a stronger future for supported business begins at 2.30pm on Thursday, October 30.