£892,200 paid out in exit packages after South Tyneside Council lets dozens of staff go in 2020/21

However the total number of exit packages from the council decreased by more than half from the previous year.

Figures from the Ministry of Housing, Communities and Local Government (MHCLG) show 39 exit packages, totalling £892,200 were awarded by South Tyneside Borough Council in 2020/21.

There were 138 staff laid off the previous year, at a cost of £2.4million.

A South Tyneside Council spokesperson said: “Exit packages not only include the cost of redundancy but also additional payments to the Local Government Pension Scheme.

“These payments are made by the employer to the pension fund and not to the employee.

“The council is required to make payments to employees who leave due to redundancy in accordance with the law.

“The removal of an employee post reduces ongoing running costs. There were no compulsory redundancies in the year.”

According to the figures, the average cost of all exit packages in South Tyneside last year was at £22,876 – up from £17,625 in 2019-20.

The Association of Local Authority Chief Executives (ALACE) and Senior Managers said job losses will continue across England because the Government does not see local councils as a priority.

The total value of exit packages nationally more than halved from £544 million in 2016-17 to £252 million last year in real terms.

Ian Miller, honorary secretary of the ALACE, said: “The higher spend between 2014 and 2017 reflects that councils were making very significant reductions in their workforce at that time as a result of the Government’s austerity programme which has cut funding for local government since 2010.

“Job cuts will continue because local government has not been a priority for this or previous governments.”

He added councils aim to protect frontline services, and workforce reductions slowed in 2020-21 because the focus was on responding to the pandemic.

Since 2014-15, the average cost of exit payments has risen by 31% for senior employees – when adjusted for inflation – and 15% for those below this level.

The figures were published as part of the Government’s research into ending “excessively high” exit payments in the public sector.

The Local Government Association said its survey of local authorities indicated that many planned redundancies in 2020 and 2021 for several reasons, including funding shortages and local government reorganisation.

It said council restructures tend to be focused on removing senior posts, which means older, longer-serving and higher paid staff are often the ones affected – and these workers are also more likely to volunteer for redundancy.

An LGA spokesman said: “Councils are required to ensure termination payments are fair, proportionate, lawful and provide value for money for the taxpayer.”

The MHCLG said councils are best placed to make decisions, but that the Government is still committed to tackling excessive exit payments.

The UK Government describes redundancy as ‘a form of dismissal from your job. It happens when employers need to reduce their workforce’.

Workers cannot be selected because of age, gender, or if you’re disabled or pregnant. If you are, this could be classed as an unfair dismissal.

People being made redundant may be eligible for certain things, including redundancy pay, notice period, the option of moving into a different job.

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