A Freedom of Information Request by the Welsh Conservatives has revealed that local authorities in Wales have spent more than £100 million on staff redundancies over three years.
The Shadow Minister for Local Government, Janet Finch-Saunders, said the figures would be “the tip of the iceberg” if the Welsh Government’s proposed local government reorganisation goes ahead.
Of the 15 local authorities in Wales to report figures for 2014/15, spending on redundancies had risen by 46% in just 12 months – from £24,666,591 in 2013/14 to £36,094,283 this year.
Biggest spenders Cardiff Council have splashed more than £25m on redundancies in three years, including £11.9m last year.
Cardiff were also the biggest users of so-called ‘gagging orders’ or non-disclosure agreements, with 1126 staff members having signed one upon exit during the period.
Other top lines:
· Biggest change: Merthyr council’s spending on redundancies rose by 1644% last year, from £46k in 13/14 to £814k in 14/15.
· Highest average pay out: Swansea council’s average payout was £23,915 – higher than any other council in Wales.
· Most redundancies: Cardiff council laid off 1496 members of staff in three years, with 1126 being forced to sign gagging orders.
Shadow Minister for Local Government, Janet Finch-Saunders AM, said:
“Welsh taxpayers will be shocked to learn that redundancy payments by Local Authorities have risen by almost 50% in the last twelve months.
“Whilst Labour’s cuts to the local government budget have forced councils to seek efficiency savings, taxpayers will be furious to learn that their bumper council tax bills are being used to fund golden handshakes for council staff.
“More than £100 million has been spent on council redundancies in the last three years, but that figure could be the tip of the iceberg if Labour press ahead with their botched plans for council mergers.
“It is little surprise that the public has lost confidence in Welsh Labour’s ability to deliver local government reform.”
On the widespread use of gagging orders in Wales, she added:
“The extensive use of gagging orders indicates a widespread sense of paranoia in Labour-run Wales.
“Nowhere is that more apparent than in Cardiff, where more than three quarters of redundancies contained a non-disclosure clause.
“These agreements prevent people from criticising their former employers and you have to question what they have to hide.
“The use of gagging clauses demonstrates a blatant lack of regard for both the taxpayer and the principle of transparency. Whistleblowers should be encouraged not stifled.”