Solihull Council Staff Offered Resign-for-Cash Scheme to Save £2.7 Million

Solihull: The council is offering staff a chance to resign for cash. This move aims to save over £2.5 million. All employees, except school staff, with three or more years of service can apply.

The scheme allows employees to leave their jobs for a severance payment. Solihull Council employs around 6,000 people. They are facing a £6.8 million deficit this financial year and need to find savings.

Paul Johnson, the council’s chief executive, spoke at a recent meeting. He highlighted the financial challenges the council is facing. A financial sustainability board is exploring options to balance the budget.

Johnson explained that the council’s workforce is a major expense. They aim to save at least £2.7 million through this resign-for-cash scheme. They believe some employees will be interested in this option.

This scheme differs from voluntary redundancy. It invites applications in March, with decisions made in April. The payment will be 65% of a basic salary, roughly 33.8 weeks of pay.

Anyone who leaves under this scheme cannot return for two years. Adrian Cattell, head of human resources, met with union representatives. They noted it was a voluntary scheme and raised no concerns.

Council member Richard Long asked about the impact on younger staff. Cattell responded that it depends on personal circumstances. Some older employees may consider retirement, while younger ones might seek a career change.

Council member Tony Dicicco inquired about the £2.7 million target. Johnson said it equates to 40 to 50 staff, which is realistic. They want to avoid setting an unrealistic target of 500 to 600 staff.

Johnson emphasized that this is the only scheme available. They want to prevent employees from waiting for other options. Council leader Ian Courts clarified that redundancy is different from this scheme.

Councillors agreed to introduce the scheme during a meeting at the Civic Suite on January 27.