Campaign to boost redundancy pay gathers momentum

[POSTMAN]

Campaign to boost redundancy pay gathers momentum

Backbencher's motion calling on the government to honour manifesto pledge to increase statutory redundancy pay has support of 130 Labour MPs

The campaign to boost payoffs to workers who are made redundant has stepped up with the publication of a backbench bill.

The bill, scheduled for debate on 13 March, builds on a body of support for Labour backbencher Lindsay Hoyle's parliamentary motion, which already has 130 Labour MPs - making it the second most important flashpoint after the issue of the part-privatisation of Royal Mail, which has nearly 150 Labour MPs on board.

The motion calls on the government to make good an outstanding manifesto pledge to increase statutory redundancy pay from one week's pay for each year.

Statutory redundancy payouts are currently capped at £7,000, or £10,500 for workers aged over 41, with wages above £350 a week and service of more than 20 years ignored. Some 46% of the workforce earns more than £350 a week.

Launching the bill, Hoyle said the maximum pay figure used in the formula had declined from 203% of average weekly earnings when the scheme was launched in 1965 to 56% today.

Campaigners want the cap to increase to £10,000 for workers aged 22 to 41, and £15,000 for older staff.

The government has said it is reviewing the matter, and an announcement is expected ahead of the budget on 22 April. The business secretary, Lord Mandelson, is expected to include a submission to the chancellor ahead of the budget.

Instead of altering the cap, Mandelson's department is also thought to be considering lowering the qualifying period for redundancy payments from two years' service to one year, and raising the tax-free limit for more generous payoffs. Since 1988 the first £30,000 has not been subject to tax. Campaigners would like this raised to £50,000.

However, ministers may decide to focus any help on lower-paid workers by boosting minimum payments.

The Treasury is reported to have told Mandelson that the business secretary's own department should find the money from its own budget.

Increased redundancy payouts will meet resistance from employers – trying to keep costs down – who will warn the government of a further job cuts if they are forced to make bigger payouts.

Speaking at the launch, the Labour MP Nick Palmer said higher redundancy payments made during previous recessions had ended up being beneficial – encouraging workers laid off with generous payments to set up new businesses in other sectors of the country.

[POSTMAN]

A manifesto pledge is a pledge,now fecking get on with it.
Oh sorry pledge's mean nothing to this lot.