The 27 Remploy factories which will close are:
Acton, Ashington, Barking, Birkenhead, Bolton, Cleator Moor, Gateshead, Leeds, Leicester, Manchester, Newcastle, North London, North Staffs.
Oldham, Penzance, Pontefract, Preston, Southampton, Spennymoor, Wigan, Worksop, Aberdare, Abertillery, Merthyr Tydfil, Swansea, Wrexham and Wishaw, Boston Spa.
In a statement the Department for Work and Pensions said: "We have been absolutely clear that the £320 million budget for specialist disability employment services has been protected. But by spending the money more effectively, we can support thousands more disabled people in work.
That is why we accepted the recommendation from disability expert Liz Sayce, to focus support on individuals through services like Access to Work, rather than institutions like Remploy, so more disabled people can work in mainstream employment rather than segregated factories."
Today's announcement has come totally out of the blue with the Government and Iain Duncan Smith showing a callous disregard for vulnerable disabled workers.
He's lived up to his own description of being the 'quiet man', by getting a junior minister to try and bury bad news ahead of the Lords reform debate.
Our members are desperate to work in an environment that takes account of their disability, where they can make a valued contribution to society and pay their way.
They do not want to be thrown on the scrapheap and relying on handouts.
Maria Miller, the minister for disabled people, told MPs that the £320 million budget for disabled employment services could be spent more effectively:
This is difficult news. We are doing everything we can to ensure that Remploy workers will receive a comprehensive package of support and guidance to make the transition from Government-funded sheltered employment to mainstream jobs... Our approach has been led by disabled people's organisations and disabled people themselves, many of whom have welcomed the move to end the pre-war practice of segregated employment.
The Government has confirmed the closure of 27 Remploy factories which employ disabled workers. It says the money can be spent more effectively.
Disabled workers are to stage two 24-hour strikes in protest at plans to close their factories.
Members of the GMB and Unite unions in Remploy sites across the UK will walk out on July 19 and 26 to express their "disgust" at the government's plans.
The workers have voted in favour of industrial action as part of a campaign to stop any of the 54 factories closing.
GMB Union: Disabled workers at Remploy have voted to go on strike in protest at plans to close their factories.
The Minister for Disabled People Maria Miller said the government would support Remploy workers who wanted to take over the factories they work in. The Remploy organisation provides employment services for disabled people.
Maria Miller - disabilities minister - refused to visit the Remploy site in my constituency then cancelled FOUR separate meetings with me...
...today, she announces that the Remploy factory in my constituency is to close. What a shamefaced coward. Despicable.
Workers at Remploy's Bridgend factory tell me they are devastated at the news that the factory is one of seven across Wales threatened with closure.
One woman, who has worked here for 30 years, burst into tears as she told me she has no idea where she will be able to get another job.
There is more reaction to this story at ITV Wales.