§ 25. Mr. Spriggsasked the Secretary of State for Employment if he will publish in the OFFICIAL REPORT the respective cost to his Department and employers of the Redundancy Payments Scheme, for each year since the scheme commenced; what representations he has received from trade unions, employers and individuals about the scheme; what replies he has given; and if he will make a statement.
§ Mr. Maurice MacmillanThe cost of the scheme is borne wholly by employers. Part of the cost is spread over employers throughout industry by means of the redundancy fund, financed by employers' contributions, from which employers who make due payments may claim rebate.
A variety of representations have been received from organisations and individuals, the replies to which have depended on their nature.
Following is a statement of employers' expenditure:
Employers' Contributions* Not amount of Redundancy Payments borne by employers (Payments to employees less rebate) Financial Year £M £000's 1965–66 5.30 924 1966–67 19.99 8,570 1967–68 34.50 13,153 1968–69 44.57 16,006 1969–70 51.02 26,420† 1970–71 50.07 36,074 1971–72 51.46 55,037 Total 256.91 156,184 * Gross amounts paid by employers. The income of the Fund, excluding loans, consists of contributions less cost of collection, plus relatively minor amounts from e.g., short-term investments of cash surpluses and recoveries of guarantee payments. † The Redundancy Rebates Act 1969 reduced rebate to 50 per cent. of the payment to employees whose employment terminated on or after 17th March, 1969, from a former average of 75 per cent.