Following the publication on 9 June of Liz Sayce’s independent review of specialist disability employment programmes, I will today publish the Government’s response, and a consultation on a number of the specific recommendations.

At the time of publication, I welcomed the central theme of the review, that resources should be directed towards disabled people themselves, giving them maximum choice and control over the services they receive.

The Sayce review makes a range of important recommendations about how to turn this aspiration into reality. Liz Sayce has put forward a new direction for specialist disability employment services that would see Access to Work improved and expanded, using funding released from reform of Remploy and residential training. Over time, the Sayce review recommends moving towards a single specialist disability employment programme built on the Access to Work model, that would sit alongside and complement the services provided through the Work programme.

If implemented in full, the Sayce recommendations would have a significant impact on some of the organisations that currently deliver employment services to disabled people, particularly Remploy and residential training colleges. Before taking decisions in these areas, we are seeking views through a public consultation.

Remploy is now in year four of a five-year modernisation plan. In autumn 2010, the Government confirmed that the modernisation budget over the five-year plan remained unchanged, at £555 million with an additional £111 million to meet the additional costs of restructuring. However, in spite of this significant investment, Remploy has not met the majority of its modernisation plan targets, which have proved to be unrealistic. Liz Sayce found a total consensus among disabled people’s organisations and charities that the Remploy factories were not the model for the 21st century.

I am therefore attracted by the new model for Remploy set out in the Sayce review. This model would see Remploy leaving public sector ownership, with organisations and employees themselves being given the opportunity to create new businesses or acquire existing businesses, where viable. Where businesses were not viable, and could not continue, employees would receive a comprehensive package of support to find alternative employment. Before taking decisions about the future for Remploy, I am inviting views on these specific recommendations as part of the public consultation.

In relation to residential training, I welcome the recognition in the Sayce review of the unique and very valuable function which the colleges perform in supporting disabled people to achieve qualifications and adapt to disability. Through consultation, I am seeking views about whether we should adopt the Sayce recommendation that this provision should no longer be funded through direct employment programme spending and that residential training colleges should be supported to seek a wider range of funding sources. We would not want to lose the expertise the colleges provide and so we are also seeking views about how any transition could best be managed.

The Sayce review sets out how Access to Work could be improved and expanded. I agree that Access to Work has the potential to help more disabled people and to be delivered more effectively. However, a large increase in customer numbers cannot be achieved without additional funding. Decisions about the future strategy for Access to Work will therefore need to be taken in the context of the responses to the consultation. I have already confirmed that the budget for specialist disability employment programmes is protected over the current spending review period and that any resources released from reforms, after investing in support to help those people and organisations affected through the transition, would be used to improve services and help more disabled people enter and remain in employment.

I have already accepted the recommendation to form a cross-Government ministerial group to oversee a new strategy for disability employment, and the group has now been established.

I will work with disabled people and their organisations to explore the recommendations in the Sayce review. The consultation runs to 17 October, and I encourage responses to the consultation from disabled people, organisations of and for disabled people, employment service providers and all those who have an interest in this important topic.