Redundancies at Wolverhampton City Council to cost £18m in payouts

Making council workers redundant will cost one cash-strapped authority £18.7 million over two years, figures have revealed, as it emerged that it will be down to its last £623,000 of reserves by the end of the next financial year.

It can also be revealed that Wolverhampton City Council is planning to offer less generous packages to staff whose jobs are axed amid £123 million worth of cuts.

The controlling Labour cabinet will tonight vote to look into reducing its redundancy to ‘statutory minimum’.

A report to councillors reveals: “It should be noted that it cannot be guaranteed that the council will be able to allow employees to access a full pension between the ages of 55 and 60 after March 31 2014.”

There are 1,400 jobs set to go at the council with redundancy expected to put a burden of £7m on the council’s bank balance in 2014/15.

The council is re-opening a voluntary redundancy scheme to applicants, offering a more generous package than the one given to those who are made compulsorily redundant.

The £18.7m cost of redundancy, revealed in the report to the cabinet, is based on making 1,137 redundancies over two years.

At least 1,400 posts must go over five years.

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Opposition Conservative finance spokesman Councillor Wendy Thompson said: “The council has seriously underestimated the changes to its grants.”

Budget reports reveal that without deep cuts the authority will be down to its last £620,000 in it’s ‘uncommitted general reserves’ by the end of the next financial year.

Finance bosses say they need to have a minimum of £10m available in reserves.

Councillor Andrew Johnson, who is in charge of finance, said: “The £620,000 we would have left without urgent action is about the equivalent of taking 15 children into care.”

The controlling Labour cabinet will tonight vote to instruct managers to stop all but ‘absolutely essential’ spending for the remainder of the financial year while more cuts are drawn up.

Comments for: "Redundancies at Wolverhampton City Council to cost £18m in payouts"

Eddie S

That's an average of £14,000 each in redundancy! WTF is that all about? To get to that amount, even on 'enhanced' payoffs (& who thought that was a good & prudent idea?), that suggests an average 'wage' of over £30,000 per year,plus pension contributions(?)

There my friends, is how the public sector is spendthrift and reckless with OUR cash! And they have the cheek to blame the 'Tories' in Westminster;

BOOT 'EM ALL OUT

Uklol

I was under the the impression the the West Midlands Pension Fund was independent to Wolverhampton Council. So how is it that they can make these decisions for the pension fund. When Mike Woodall was the pension administrator it was in a very healthy place, whats gone wrong since he left?

Mrs Ivy Trellis

A 'Knee-Jerk' reaction in order to seek Publicity? I am sorry, but the 'Gravy Train' has to stop at WCC! No doubt that the 'Forced Redundancies' will occur at the lowest levels - Which suddenly becomes a 'Double-Edged Sword!' - Redundancy equals Benefit Dependency, and possible Repossessions, etc.

Redundancies should begin from the 'Top Down!' Mayor goes, Vice-Mayor goes, and Deputy Acting Chief Assistant Mayor goes too! - Sell the Mayoral Car, and the associated Paraphenalia. Then examine the tiers of Managers, and Consultants. Wolverhampton Council has obligations to perform - Public Health Act (Refuse Collections) - Yet, no doubt, their failure to deliver will be blamed on 'Cuts' whilst the Mayor still has a chauffeur driven Jaguar!

Articles such as the above, and the statements made by WCC treat people as if they were 'Folk!' - Not all of us have 'Fallen off the Christmas Tree,' and some of us are more than aware of the 'Dodges' that are pulled! - From the lowest levels, through to the highest levels.

Local Authority Finance has become akin to digging a hole in the road and filling it with five pound notes! - Unqualified, Inept, and Dangerous People, declaring UDI within their own back yards!

middley

Spot on Ivy, You may find that most of them millions are to pay off NO Jobbers, not people with REAL jobs who do actually work for the council. The annoying thing is that they get their jobs back under a different banner or as a consultant after the massive pay off, following their "gardening leave". I have been part of a cull to save money to keep management and it's not nice to put it politely, when the company have paid contractors to do the work I was doing, and since then have been told by a trouble shooter that the reason the business is failing because they got rid if too many "hands on" workers, Touche !

Mrs Ivy Trellis

£7m in Immediate Redundancy Payments, and only £623,000 'Cash at Bank?' – Appears to be a simple case of 'Bankruptcy' to me! However, the only problem there is that no Local Authority has ever been allowed to go 'Bust' – And, even if they did, everyone would be on the 'Sausage Roll!' – An unthinkable situation for any Government (irrespective of its political colour).

(The £623,000 'Cash at Bank' remark is a complete misnomer! – The Payroll of WCC runs into Millions, month-on-month) When Wolverhampton City Council runs its Payroll each month, the tide begins to creep-in, all around the British Isles; and the Banks think that Christmas has arrived early! – Bookmakers take on additional staff, and the Loan Sharks descend at the Cashpoints!

Should Bankruptcy occur Wolverhampton would be without Local Government – Would anyone really notice?

This situation is a complete farce, and requires some with 'Orchestra Stalls' to intervene and sort it out! – The Butcher, Baker, Second-Hand Car Dealers, and Football Club Owners cannot 'Contribute' further! – They have done quite sufficient in bringing matters to the level that they are. However, no doubt, they are playing the "I'm Alright Jack" Ticket!

As an aside, where are the Local Members of Parliament on this subject? Clearly, these are 'Serious Constituency Issues?'

Jacko

Chickens.

Roost.

Coming home to.

Fat cat salaries, fat cat pensions, too many days off sick.

Councillors allowances.

The John Bird Mausoleum. ( Aka civic centre)

Kow towing to ethnic minorities .

Election fraud.

The Queen Square fountain

The bus station

Wonder where it all went wrong ?

Perhaps they could consider a name change to DETROITUS.

Mrs Ivy Trellis

Jacko, do you mean The City of Wolverhampton Twinned with Detritus sur Merde?