Share

Commission: voluntary exit programme is good value for money

Charity Commission in Liverpool
News

Commission: voluntary exit programme is good value for money1

Governance | Tania Mason | 11 Jul 2013

The Charity Commission has defended its voluntary redundancy scheme as good value for money for the taxpayer, insisting that it has already paid for itself and will deliver further savings of £4m a year going forward.

Earlier this week civilsociety.co.uk reported that the £4.3m cost of making 129 people redundant between January 2011 and March 2013 had so far delivered just £3.3m in savings to the Commission’s wage bill.

But the Commission has pointed out that if the social security and pension costs of those employees are taken into account, the saving rises to £4.2m, just short of the £4.3m cost of the severance packages.

A spokeswoman for the Commission also added that the regulator expects a further £4m in savings will accrue each year from now as a result of the job cuts, so it is confident that this represents “good value for money for the taxpayer”.

Size of payments 'like banking sector'

The regulator also sought to defend the size of the severance packages agreed, after some readers of Tuesday's story were aghast at the amount of some of them.

In the same week that the BBC and the NHS have come under fire for their redundancy programmes, the Commission revealed that one of its severance payments was in the range £150,000-200,000; three were between £100,000 and £150,000, and 26 ex-employees were given payments of between £50,000 and £100,000.

Social entrepreneur Sally Smith commented that statutory redundancy pay would be between 0.5 and 1.5 weeks pay for every year worked, dependent on age, so the Charity Commission's average redundancy payment of £33,000 across all 129 employees would equate to the average employee working for 20 years on a final salary of £85,000.

"Why in times of austerity and dramatic cuts have the Charity Commission been so very generous in their redundancy payouts?" she said.

Steve Edwards described the amounts as "ludicrously excessive" and "more like the kind of redundancy payments that you would expect in the banking sector".

Commission: Many staff gave long service

In response to a question from civilsociety.co.uk about how many of the severance packages exceeded the statutory minimum, the Commission spokeswoman said that the statutory redundancy scheme does not apply to civil servants.

Instead, all civil service exits are governed and calculated in line with the Civil Service Compensation Scheme (CSCS),  which sets out the level of compensation that departments can pay their staff if they leave under voluntary or compulsory redundancy.

"None of the package payments went beyond the terms of the CSCS," the spokeswoman said. "Many of our staff have given very long service; this is why some of the awards were quite significant."

T Bigden
DAVSS
11 Jul 2013

Another ghastly incidence of one rule for "us" and another for "them".

How long will it take for all of the "redundant" people to be taken back on an agency basis as self employed hires / consultants etc.

The nepotism and self serving character of the Civil Service is disgusting. One notes the report just out that so many in the NHS made redundant in one authority have been taken on in another. Revolving doors going so fast that they make you giddy!

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

Alzheimer’s Society income up £12m

24 Nov 2014

The Alzheimer’s Society has seen its income increase by 17 per cent, from £70.8m in 2013 to £82.6m...

RNIB chief executive criticises ‘arrogance’ of MPs who think charities must learn from private sector

21 Nov 2014

Lesley-Anne Alexander, chief executive of RNIB, yesterday said she had a “struggle with the arrogance”...

Property boom poses risk to charities' long-term survival, survey reports

20 Nov 2014

Nearly half of charities consider property the greatest risk to their long-term survival, according to...

Charity boxes ‘could fund terrorism’, warns senior police officer

24 Nov 2014

One of Britain’s most senior police officers warned yesterday that charity donation boxes could be used...

Band Aid 30 raised £1m in first day

19 Nov 2014

Band Aid 30 became the fastest-selling single of 2014 when it was released yesterday, with 206,000 people...

Society lotteries deregulation could lead to less trust in charities, says NCVO

19 Nov 2014

Deregulation of society lotteries could impact public trust and confidence in charities, NCVO has told...

OSCR launches new website

20 Nov 2014

The Office of the Scottish Charity Regulator has launched a new website which includes a new search function.

Data from controversial Samaritans app to be deleted

17 Nov 2014

Samaritans has promised that all data collected by its Twitter monitoring app will be deleted and the...

Post Office enables Children in Need donations through Twitter

11 Nov 2014

The Post Office has become the first UK organisation to allow Twitter users to donate to charity through...

Join the discussion

Twitter
 
Training

Attending our one day courses is a highly effective way of ensuring new and existing trustees fully understand their role, responsibilities and liabilities.

>> Find out more <<