§ 43. Mr. Orbachasked the Minister of Labour what amounts have been paid out under the Redundancy Payments Act; and what is the estimate of the amount to be paid out under the Act for the year 1967.
§ Mr. GunterThe amount paid out between 6th December, 1965, when the Act came into operation, and 30th September was £17,330,000. Of this £4,251,000 has been borne by employers and £13,079,000 by the Redundancy Fund.
Future payments cannot be estimated with precision. Expenditure from the Fund has, however, exceeded income substantially since May and the Fund will shortly run into deficit. Outgoings are, moreover, expected to rise in the coming months. Action is urgently needed to clear the deficit, to cover rising expenditure, and also in the longer term to build up a reserve. I have therefore today laid a draft Order which provides for an increase in contributions from 6th February, 1967. The draft Order is subject to the approval of both Houses by affirmative Resolution.