Published: 26/02/2019 By Martin ArmstrongDuring 2018 The Insolvency Service an agency of the Department for Business Energy and Industrial Strategy paid out a total of £298.07M to former members of staff as a result of their employer entering administration, liquidation, a CVA or another form of corporate insolvency.
A total of £196.35M was paid in redundancy pay whilst £59.85M was paid for money that would have been earned working a notice period. The remainder went on unpaid wages, overtime and commission. (Source www.altusgroup.com).
Martin Armstrong commented that the National Insurance Scheme was set up on 5th July 1948 to provide unemployment benefit, sickness benefit, retirement pensions and other benefits. It is funded by National Insurance Contributions.
This provides a useful protection and safety net for employees who lose their jobs as a consequence of the insolvency of their employer.