A POSSIBLE lifeline for under-threat Remploy factories in the North-East could turn out to be a damp squib, it was feared yesterday.

A trade union and the Labour party threw doubt on the Government’s plans to set aside £300,000 to help disabled workers take over centres earmarked for the axe – and save their own jobs.

Among the 36 factories facing closure – most by the end of this year – are Spennymoor, Gateshead, Newcastle and Ashington.

Yesterday, Maria Miller, Minister for Disabled People, said the cash – less than £10,000 for each factory facing closure – would pay for lawyers and accountants to advise on rescue proposals.

She said: “This money will help support employees to put together credible bids to safeguard the jobs of disabled people.”

But the GMB union said £300,000 was nowhere near enough, given the millions the Government was taking away from Remploy.

Ken Stubbs, the union’s Northern branch secretary, based in Spennymoor, said: “Talk of this lifeline has been deeply distressing in every Remploy factory set for closure, including Spennymoor, because disabled employees initially believed they had been saved.

“£300,000 for business plans, which we’ve been given three days to complete, and some glib statements from ministers won’t do us any good and are just an attempt to avoid legal claims later on.”

Anne McGuire, for Labour, said it was unclear whether it would be enough to put together a workable business plan.

However, Ms Miller pledged that Remploy’s £320m budget will be protected and spent more effectively to “get thousands more disabled people in work”.

She said the move had been recommended after a review – led by the chief executive of Disability Rights UK – which said expensive, segregated employment should be phased out.

The factories lose a total £63m a year and the average taxpayer subsidy is £25,000 for each worker – compared with only £2,900 to support a disabled person in a mainstream job.

The organisation was cut by Labour, which closed 28 factories, including those in Stockton, Hartlepool and York. About 350 workers lost their jobs at the three centres.

The new closures will cost 135 jobs at Spennymoor (41), Newcastle (55), Gateshead (11) and Ashington (28) – but Sunderland’s factory (35 workers) survives.