UK redundancies cost firms £6billion - Fron the Daily Mail

8th March 2010

British employers spent £6billion on redundancy payments last year.

The payouts show the scale of efforts firms are using to bring down the wage bill as they face the downturn. The HMRC data shows severance payments for the year to the end of March rose 25% on the £4.5billion forked out over the previous year.

In 2009 £500m per month was spent, with individuals receiving an average £12,500 each in redundancy payouts, according to the research sourced by law firm Wedlake Bell under the Freedom of Information Act.

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While City workers now receive much less than they did prior to the collapse of Lehman Brothers, sectors such as pharmaceuticals and the oil industry are still offering generous sums.

These costs are set to spiral in 2010 as employers offset tax hikes with further rounds of job cuts. David Israel, a partner at Wedlake Bell, said: "The cost to UK employers of credit crunch-related job cuts in redundancy payments alone is staggering. Businesses have been willing to take a pretty big upfront hit in order to deliver longer-term savings."

This article was taken from the Daily Mail and can be found here

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