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Redundancy

Volume 486: debated on Wednesday 21 January 2009

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform how many staff in his Department left under (a) involuntary and (b) voluntary staff exit schemes in each year since 2005-06; how many of them in each case were paid (i) up to £25,000, (ii) £25,001 to £50,000, (iii) £50,001 to £75,000, (iv) £75,001 to £100,000 and (v) over £100,000 in the year before they left; and how much (A) was spent in each of those years and (B) is planned to be spent in (1) 2008-09 and (2) 2009-10 on such schemes by (y) his Department and its predecessor and (z) each of his Department’s agencies. (242258)

The information on staff early departures under voluntary and involuntary schemes, banded according to their salary in their final year, can be obtained only at disproportionate cost.

(a) The following table shows expenditure on early departures for voluntary and involuntary schemes by BERR, and its predecessor DTI, in each year since 2005-06.

£

2005-06

6,427,000

2006-07

12,802,000

2007-08

10,248,000

(b)(1) The Department will spend £1,607,000 on early departure schemes in 2008-09.

(b)(2) The Department has no planned expenditure for early departure schemes in 2009-10.

Payments include pension lump sums as well as compensation awards. The Department will always try to deal with staff surpluses by means other than redundancy. If redundancies become unavoidable, the Department will endeavour to reduce staff by voluntary rather than involuntary means wherever possible.

I have approached the chief executives of the Insolvency Service and Companies House and they will respond to you directly.

Letter from Stephen Speed, dated 20 January 2009:

The Minister of State for Business, Enterprise and Regulatory Reform (BERR) has asked me to reply to you directly in respect of your question (2008/90) asking how many staff in his Department have left under (a) involuntary and (b) voluntary staff exit schemes in each year since 2005-06; how many of them in each case were paid (i) up to £25,000, (ii) £25,001 to £50,000, (iii) £50,001 to £75,000, (iv) £75,001 to £100,000 and (v) over £100,000 in the year before they left; and how much (A) was spent in each of those years and (B) is planned to be spent in (1) 2008-09 and (2) 2009-10 by (Y) his Department and its predecessor (Z) each of his Department’s agencies.

As an Agency of BERR, The Insolvency Service has not undertaken any involuntary or voluntary exit schemes since 2005-06 and there are no plans to hold such schemes during 2008-09 and 2009-10.

Letter from Gareth Jones, dated 20 January 2009:

I am responding on behalf of Companies House to your recently tabled Parliamentary Question to the Minister of State for Business Enterprise and Regulatory Reform.

Companies House has not run an involuntary exit scheme during the period in question. Details of the voluntary exit schemes run in 2005-06 and 2006-07 are as follows:

Pay band

2005-06

2006-07

Up to £25,000

1

43

£25,001 to £50,000

9

11

£50,001 to £75,000

0

0

£75,001 to £100,000

0

0

Over £100,000

0

0

There were no staff exit schemes in 2007-08 and there are no plans for schemes in 2008-09 or 2009-10.