YORK MP Hugh Bayley raised concerns about funding cuts on a visit to meet people who work at the York Disabled Workers Co-operative.
The co-operative, in James Street, was set up two years ago by two former employees of the Remploy York factory which closed in March 2008.
It initially employed six people, three paid by the co-operative and three employed by Remploy as part of a programme to support former employees of the company when some factories closed in 2008. The support package has now ended and the former Remploy staff have been made redundant.
Yesterday Mr Bayley said he was “appalled” to learn these people no longer had their jobs.
A report earlier this found the remaining Remploy factories lost a total of £63m a year and each employee is subsidised by an average £25,000.
In 2007 Remploy’s 83 factories were slashed to 54, while in March this year it was announced 36 out of 54 factories were earmarked for closure. The Government-owned company is in talks with potential bidders for nine of those sites.