Until now, there were only talks of the government making redundancies and there was a slimmer of hope at least in some sections that the government may have last minute changes in the depth and breadth of changes. Unfortunately, the inevitable had to happen and the reality of the government cuts begins to bite.
Manchester council in its attempt to save £109million this financial year has put an estimated 2,000 council workers signed up for voluntary redundancy packages yesterday. This is just the beginning as the council has to save a further £170 Million next year.
The redundancies have been on the rise for the past 12 months and unfortunately as per many analysts, this is just the tip of the iceberg. Increasing costs of fuel, rising inflation and continued low lending by the banks is not making things any easier for businesses. The impact from the recent earth quakes and tsunami in Japan is also hurting the manufacturing sector as there are delays in exports and it affects the carefully balanced supply chain that the Japanese manufacturers based in the UK are used to.
The other major employers who made mass redundancies this week were Pfizer in Kent and Salford University.
Stuart Boseley, Director Best Insurance commented on this week’s redundancies and said that while none of these are surprises, reality hits when the redundancies are implemented. He added that those who have been proactive and have some sort of redundancy insurance are definitely better off as the redundancy insurance will pay them for the next 12 to 18 months. Apart from the safety net of income protection insurance or the payment protection insurance, the ones who have covered for their unemployment also do not have to jump to sign up to the first next job offer they receive. However there are quite a few who do not have any form of redundancy or unemployment insurance and will not be easy.
Kesh Thukaram, Director Best Insurance added and said that Best Insurance has receiving 50% more applications for unemployment insurance in Q1 2011 when compared to Q4 of 2010.
Best Insurance is one of the UK’s largest unemployment insurance and redundancy cover specialists. They have a wide range of income protection and payment protection policies and in many instances, policies can be tailor made to suit the unique requirement of each individual.
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