Stat of the day: £4.4bn

The amount UK businesses paid out in redundancy payments over the last year.

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Last Updated: 09 Oct 2013
Firms might be making cuts left, right and centre to help reduce costs – but in the short-term, it’s worth keeping in mind that making redundancies can be a pretty expensive business. In fact, last year, redundancy payments totalled £4.4bn, statistics obtained under Freedom of Information show.

Over the last three years, employers have paid out more than £13bn in redundancy payouts according to City law firm Wedlake Bell, who requested the figures from HMRC.

The average redundancy payout was £9,362 per person in the year to March, with businesses cutting 470,000 jobs, a fall of 10,000 from the previous year. And the numbers aren’t showing any signs of slowing: the report warned that redundancies are likely to remain high this year as the economy remains shaky – especially likely if the retail sector is any indication.

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