The Insolvency Service’s Redundancy Payments Service (RPS) has been a crucial lifeline for employees impacted by company failures. In the fiscal year 2023-2024, the RPS processed 85,592 claims, disbursing £494 million from National Insurance contributions to individuals facing financial hardship due to insolvency.
The RPS ensures rapid processing of claims, averaging 10 days, and covers unpaid wages, holiday pay, and statutory notice pay. Remarkable cases include £53.7 million paid within 24 hours to nearly 10,000 former employees of Wilko. The service also issued protective awards to employees not consulted before redundancy, totalling over £3.5 million to former staff of Debenhams and Norwegian Air Resources UK Limited.
Additionally, the RPS recovered £29 million from insolvent companies to replenish the National Insurance Fund. This comprehensive support highlights the RPS’s commitment to assisting those in financial distress due to unexpected job losses.
In owner managed businesses it can be a challenge for directors to be able to make these claims. They will need to have been paid through the PAYE system, at appropriate rates and with a formal contract.
For more information or to apply for redundancy payments, visit the Redundancy Payments Service – https://www.gov.uk/government/news/people-who-lost-jobs-in-business-failures-thrown-vital-lifeline-by-insolvency-service.
