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Departments: Redundancy

Volume 457: debated on Wednesday 7 March 2007

To ask the Secretary of State for Work and Pensions pursuant to the answer of 30 March 2006, Official Report, column 1200W, on departmental cost, how much was spent on (a) involuntary and (b) voluntary staff exit schemes in (i) his Department and (ii) each agency of the Department in each year since 2005-06; how much is planned to be spent for 2007-08; and if he will make a statement. (123890)

The amounts spent by the Department and its agencies on voluntary staff exit schemes in 2005-06 are set out in the following tables The in-year costs for each agency include lump sums paid to individuals on the day of departure, plus Annual Compensation Payments for exits in that year and from previous years. They exclude Annual Compensation Payments for future years.

The Department is unable to differentiate between voluntary and involuntary exits schemes but to date there has been only one compulsory redundancy.

Departmental Actual and Planned Expenditure

£ million

2005-06

139.98

2006-07

67.58

2007-08

131.74

Expenditure in 2005-06

Business

£ million

The Pension Service

14.06

Child Support Agency

4.48

Disability and Carers Service

6.98

The Appeals Service

0.16

Jobcentre Plus

69.01

Health and Safety Executive

1.81

The Rent Service

0.00

Corporate and Shared Services

43.48

Total

139.98

Note:

A proportion of the ongoing annual pension payments for early retirement cases are held centrally and included in the Departmental Corporate Units’ line.

Expenditure in 2006-07

The actual expenditure for the Department and its agencies on voluntary staff exit schemes to January 2007 and are forecast for February and March 2007 is set out in the following table.

Business

£ million

The Pension Service

3.71

Child Support Agency

1.34

Disability and Carers Service

0.26

The Appeals Service

Jobcentre Plus

45.38

Health and Safety Executive

0

The Rent Service

0.33

Departmental Corporate Units

16.56

Total

67.58

Note:

The Appeals Service is no longer an agency of the Department.

Expenditure in 2007-08

The forecast expenditure for the Department and its agencies on voluntary staff exit schemes in 2007-08 is set out in the table.

Business

£ million

The Pension Service

52.39

Child Support Agency

3.71

Disability and Carers Service

8.97

The Appeals Service

Jobcentre Plus

28.15

Health and Safety Executive

0

The Rent Service

2.37

Departmental Corporate Units

36.15

Total

131.74

Notes:

1. The Appeals Service is no longer an agency of the Department.

2. The forecast is based on the £176 million Early Release Fund budget already identified for businesses in 2007-08. Further funding is likely to become available and allocated at the start of the financial year.

Other Notes:

3. Work and Pensions Committee—Jobcentre Plus

The uncorrected evidence from Jobcentre Plus officials at the Work and Pensions Select Committee hearing on 15 January 2007 quoted expenditure on severance packages as being £185.5 million in 2005-06 with a forecast of £116 million in 2006-07. These figures relate to allocated funding for the year whereas the expenditure figures in the tables in the response reflect actual in year expenditure. Provision needs to be set aside from allocated funding for future Annual Compensation Payments even though such costs are not incurred in year. This ongoing provision accounts for the difference between the figures in the tables and the figures quoted in the evidence session held on 15 January.