£617m set aside for public sector redundancies

The government has come under criticism from the Labour party after the Treasury released new figures revealing what they say is an additional £617million allocated for redundancy payments over the next year.

The Treasury report clarified that the money was required for “an increase in the level of provisions for redundancy costs”, and specifically those outlined in the impact assessment for Health and Social Care Bill which will re-organise the NHS.

The Labour party said that the initial budget for the NHS re-organisation, and in particular to fund redundancy packages, was £1.2-£1.3billion, and says that the additional £617million announced in the Treasury supplementary estimate report on public spending indicates that the government is losing control of the NHS re-organisation. The Department of Health however, says that the £617million is not additional to the costs outlined in the impact assessment in September of last year.

Public sector employees in Northern Ireland and the rest of the UK are bracing themselves for the large scale redundancies and austerity measures that are required to fulfill the government's pledge to reform and re-organise the public sector. Teachers have already received details of a voluntary redundancy package which was swiftly rejected by Union leaders. Details of redundancy packages for other areas in the public sector are expected to follow in the coming months.

The public sector austerity measures are also expected to result in redundancies in the private sector, as a large increase in unemployment will quickly translate to reduced spending in households in Northern Ireland and throughout the United Kingdom. The retail sector in particular is expected to experience a significant impact once the public sector redundancies begin in earnest.

If you are an employee or employer in Northern Ireland requiring legal advice in respect of a voluntary redundancy package, compulsory redundancies, unfair dismissal claim, or any other employment matter, contact one of the employment law solicitors at Wilson Nesbitt in Belfast by calling 0800 840 9296.

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