Mansfield Council spends tens of thousands of pounds on redundancy packages

The Local Government Association said councils across the country have been forced to reduce their workforce sizes due to budget cuts despite dramatic increases in the volume and range of services provided

Department for Levelling Up, Housing and Communities figures show five people were laid off by Mansfield Council in 2021-22, at an average of £12,833 per person.

It meant the council paid a total of £64,164 in exit packages last year, down from £245,495 in 2020-21 and below the £465,607 paid out in 2019-20, before the coronavirus pandemic.

The authority spent 65 per cent less on redundancy packages than in 2014-15 – when it let go of nine employees at a total cost of £200,000 – despite exit payments typically being higher.

Mariam Amos, council strategic director, said: “When we are reviewing our services and proposing restructuring teams, we have taken opportunities to consult our employees, particularly where their circumstances are changing to discuss voluntary redundancy.

“That has been the case for most of these payments this financial year.

“We have an obligation to the taxpayer to ensure we are getting value for money for each of our services. Through efficient budgetary management, every effort is made each year to avoid any employee redundancies.

“Also, during this period, the level of services delivered to our residents has not reduced or been impacted.

“We will always do everything we can to protect the continuous delivery of vital front-line services.”

Across England, the total amount spent on exit payments fell for the fifth-successive year, from £250 million in 2020-21 to £210m last year.

However, more staff were laid off than the year before, 9,744 compared with 9,454.

Andrew Western, LGA resource board chairman, said councils have made layoffs in order to manage their budgets and avoid further pressure on taxpayers.

He said: “Without funding from the Government to meet the pressure of an accelerating National Living Wage on top of soaring energy and other costs, more redundancies are likely, exacerbating the capacity crisis that is already acute in some areas and impacting the delivery of services to the public.”

The data also shows the average exit payment across England fell from £27,000 to £22,000 in the year to March.

Across England, some 255 senior employees were laid off last year, accounting for a total payment of more than £20 million at an average of £85,000 each.

The 9,490 other staff made redundant received an average of £20,000 each in comparison.

Local figures on payments to senior and other staff are not available to protect individuals' identities.

Ian Miller, honorary secretary of the Association of Local Authority Chief Executives and Senior Managers, said exit payments are determined by staff's actual salary and time of service, meaning senior staff tend to have higher packages.

Pension costs are a major element of exit payments for those aged 55 and above, he added, which is more likely to be relevant for senior staff.