1. Transforming Remploy through Social Enterprises Social Firms Conference 1 - 2 nd July 2010

2. Outline About Remploy The Current Context Our Approach Progress to date Our Opportunities Opportunity for questions

3. Remploy Mission: To transform the lives of disabled and severely disadvantaged people through work. Non departmental public body Funded through block grant to deliver Workstep Two approaches: Employment Services Enterprise Businesses

4. Context for Change Rationalised from 83 to 54 sites in 2008 More than half the sites have little or no work Cost per person supported in the sites is rising, not falling Little or no progression from Remploy to Open Employment Impact of public sector cuts on sales

5. Approach We researched the differences between Remploy and Social Firms model We identified internal and external champions We identified 5 Remploy sites to test the model: Aberdeen, Worksop, Bridgend, Haringey, Poole We employed dedicated, entrepreneurial management We are developing individual site propositions according to local skills and markets We are exploring a number of different business models

6. Governance and Structures Nationally Driven Centrally loaded Centrally controlled Strong Governance Part of Remploy structure and systems Conformance culture Locally Driven Flexible,can do, customer focussed culture Services and systems appropriate to business and size and legal compliance Reduced overhead costs High local involvement Increasingly independent from Remploy systems/processes Remploy Site Social Enterprise 1 Social Enterprise 2 Social Enterprise 3

7. Progress to Date New Business and Governance model developed and is currently being implemented (within Remploy constraints) New site managers recruited Funding level remains flat at 09/10 budget for 10/11 A Number of new enterprise opportunities identified and implemented across the 5 sites We have identified the first 4 individual SE businesses achieving minimum 50% commercial revenue, with a minimum of 25% disabled people

8. Progress to date Full Year Forecast Commercial Sales WS Tariff Funding GIA Funding% No. employees Disabled Employees Aberdeen Textiles £ 78,000 £ 28,800 £ 40,200 53%6100% Bridgend Automotive £ 660,000 £ 110,400 £ 197,363 68%2665% WHALE Training £ 48,000 £ 9,600 £ 8,600 73%366% EMA £ 65,000 £ 14,400 £ 32,600 58%475% First 4 businesses running to Social Firms model:

9. Next Steps As businesses become viable we can talk to employees about business ownership We could offer this approach to more Remploy sites We can share our lessons learned with other sheltered workshops We can use the expertise and experience gained to support disabled and disadvantaged people set up their own businesses across the UK without having to use a Remploy site and outside of Remploy ownership

10. Questions and Feedback ?