Redundancies at Telford & Wrekin Council cost £4 million
More than £4 million has been spent on redundancy packages for workers at Telford & Wrekin Council in the last two years, it has been revealed.
The authority has shed more than 150 from its workforce since April 2014 as it battles to balance the books in the face of continued government slashing of its budgets from Whitehall.
The figures, revealed to the council's audit committee, show 27 of the 152 who lost their jobs were subject to compulsory redundancy. The rest – around 80 per cent – took voluntary redundancy.
Of the 27 who were made redundant, all but one were on salaries of less than £40,000 a year with two thirds on £20,000 or less. The figures show 89 redundancies were made or agreed in 2014/15, at a cost of £1.7 million to the authority.
There were fewer in 2015/16 – 63 – but it cost the council more, with £2.45 million paid out in exit packages for workers.
Telford & Wrekin Council spokesman Russell Griffin said: "The council continues to face significant financial challenges due to Government grant cuts, inflation and other pressures, such as the cost of safeguarding the most vulnerable older people and children in our community.
"Business redesign and restructuring ensures services are delivered in the most efficient way possible and has contributed to the £80 million savings delivered since 2009/10.
"While this has resulted in a number of redundancies, it should be noted that only 27 out of the 152 exit packages over the past two years have been compulsory redundancies.
"It is the council's aim to keep compulsory redundancies to a minimum, seeking to redeploy employees where possible."
"There are one off costs associated with redundancies, an element of which relates to Shropshire Pension Fund charges. However it is important to note that the savings generated are ongoing and vital to balancing the council's budget."
The figures also show that in 2015/16 Telford & Wrekin Council had 141 staff on the books who earned £50,000 a year or more, compared to 143 in 2014/15.
Only one – believed to be council chief executive Richard Partington – earned more than £100,000 according to the figures.
