Losing a job can be a challenging and stressful experience, especially if your employer has become insolvent and cannot pay you the money you are owed. The latest Annual Report from the Insolvency Service highlights important information about the support available through the Redundancy Payments Service (RPS).
Key Figures and Support
In 2023-2024, the RPS received 85,592 claims for redundancy payments. Funded by National Insurance Contributions, the service disbursed a total of £494 million to individuals left in financial distress due to their employers' insolvency. This substantial support aims to help you get back on your feet.
Quick Processing of Claims
The report shows that, on average, claims for redundancy payments are processed within 10 days. This quick turnaround means you can expect to receive financial support relatively swiftly, alleviating some of the immediate financial pressures following a job loss.
What Can You Claim?
The RPS covers various payments you might be owed, including:
- Redundancy Pay: Compensation based on your length of service, age, and weekly pay.
- Unpaid Wages: Any wages you are owed by your former employer.
- Holiday Pay: Payment for any accrued but unused holiday.
- Statutory Notice Pay: If you didn't receive the notice period pay you were entitled to.
- Protective Awards: Compensation if your employer didn't consult you before making you redundant.
For example, last year, nearly 10,000 former employees of the high street chain Wilko received £53.7 million in redundancy and statutory notice pay, with claims processed within 24 hours. Protective awards included payouts to over 400 former employees of Debenhams and more than 700 former employees of Norwegian Air Resources UK Limited.
How to Apply
If you need to apply for redundancy payments, the process is straightforward and can be completed online. Here are the steps to follow:
- Check Your Rights: The Insolvency Service provides guidance on what you can apply for and the types of payments that can be made. Visit Redundancy Payments Guidance for more information.
- Prepare Your Details: You'll need to provide details about yourself and your employment. The online application includes a list of items you'll need. You will need a CN number to make an application. Contact the insolvency practitioner handling your employer's insolvency to obtain this.
- Submit Your Application: There are two applications to complete online:
- Understand the Calculation: Review what payments you can expect and when. Visit Explaining Your Redundancy Payment for more details.
- Await Your Payment: The Insolvency Service aims to process claims and make payments within six weeks, though your waiting time may be shorter.
Recovering Funds
The RPS also works to recover money from insolvent companies, which helps cover some of the costs it pays out. Last year, £29 million was recovered, contributing to the support system.
Conclusion
If you've lost your job due to your employer's insolvency, the Redundancy Payments Service is designed to provide financial support and help you through this difficult time. Understanding your rights and the available support can make a significant difference as you navigate the challenges of job loss. For more detailed information and to start your application, visit the Government's RPS website.