Redundancies set to cost billions

Published on Friday 30 July 2010 20:15

THE cost of implementing the 50,000 redundancies outlined in Crawford Beveridge's report into Scotland's economic future could run into billions of pounds, the document suggests.

Mr Beveridge's report published this week estimates that the cost of giving voluntary redundancy to the average public sector worker is 56,000 - double the average salary of 28,000.

Pressure groups last night expressed surprised at the generosity of the package and the cost to the public purse that large-scale redundancies would entail.

Hefty pay-offs could interfere with the government's desire to get rid of workers through natural wastage if people decide to hang on for a big leaving package.

A spokesman for the Taxpayers' Alliance said: "Not only do these payments look to be considerably more generous than those in the private sector, the accumulative cost threatens to make a real dent in public finances despite the fact the intention is supposed to be to save money."

He added: "Though it's regrettable that many people will be losing their jobs, it's important that the process isn't unnecessarily expensive and, at least in the short term, counterproductive".

The report's estimate of the package was based on recent civil service severance schemes that saw participants receive an average of 51,000. But some union officials said that it was highly unlikely that all redundant public sector workers would receive such a good pay-off.

Tommy Campbell of the Unite union questioned the figure, saying: "Very few people will end up with that kind of money. That sort of sum is got by senior managers who have been in the public sector for a long time. Your ordinary manual public sector worker is only likely to get a couple of thousand."