The proposed increase to the statutory redundancy payment will spell more doom and gloom for the economy. The Statutory Redundancy Payment (Amendment) Bill is a private members bill which will get its second reading today in Parliament. The Bill proposes to increase the statutory redundancy payment to £500 which is an increase on the current £350 by 43%!
Understandably, business groups are saying that this would have a devastating impact on small businesses and may force them to close rather than encourage them to retain staff. The MP bringing the Bill, Lindsay Hoyle, says that the current rate is so out of step with average earnings that it is causing particularly hard times.