Milton Keynes Council spends more than £1million on redundancy packages

The Local Government Association said councils across the country have been forced to reduce their workforce sizes due to budget cuts despite dramatic increases in the volume and range of services provided

Department for Levelling Up, Housing and Communities figures show 40 people were laid off by Milton Keynes council in 2021-22 at an average of £30,689 per person.

It meant the council paid a total of £1,227,541 in exit packages last year – up from £609,331 in 2020-21.

This was also above the £503,959 paid out in 2019-20, before the coronavirus pandemic.

Milton Keynes council spent 86% more on redundancy packages than in 2014-15 – when it let go of 56 employees at a total cost of £700,000 and exit payments were typically higher.

Across England, the total amount spent on exit payments fell for the fifth-successive year, from £250 million in 2020-21 to £210 million last year.

However, more staff were laid off than the year before, 9,744 compared to 9,454.

Andrew Western, chairman of the LGA’s resources board, said councils have made layoffs in order to manage their budgets and avoid further pressure on local taxpayers.

"Without funding from the Government to meet the pressure of an accelerating National Living Wage on top of soaring energy and other costs, more redundancies are likely, exacerbating the capacity crisis that is already acute in some areas and impacting the delivery of services to the public," Mr Western added.

The data also shows the average exit payment across England fell from £27,000 to £22,000 in the year to March.

Ian Miller, honorary secretary of the Association of Local Authority Chief Executives and Senior Managers, said this shows there was no need for the exit-payment cap briefly introduced by the Government in 2020.

The cap, which meant public sector bodies' redundancy packages could not top £95,000, was brought in in November 2020, before being scrapped three months later.

Across England, around 255 senior employees were laid off last year, accounting for a total payment of more than £20 million at an average of £85,000 each.