With the end of the furlough scheme drawing nearer, Corporate Strategies have seen an increase in enquiries about the interest-free, unsecured redundancy loans provided by the Redundancy Payments Service.
The ongoing economic challenges due to COVID-19 indicate that for some there will be tough times ahead. Once the government’s Job Retention Scheme comes to an end, furloughed employees may need to be made redundant as a cost-cutting measure to allow continuity of trade.
It is not widely known that the Redundancy Payments Office (RPO) may be able to help with making redundancy payments on behalf of an employer. The primary objective of this financial assistance scheme is to save jobs based in the UK by helping businesses fund the costs of redundancy. High redundancy expenses can potentially add further financial risk to a business and ultimately jeopardise the retained jobs.
Find out more about how Redundancy Payment Loans work and the full criteria for applications.
| Recent Example – Furniture Manufacturer, 2 divisions – 1 loss making Turnover: £30m Cost of redundancy: 60 staff to be made redundant – £400k Loan schedule: 36 months Jobs saved: 80 |
| Recent Example – Midlands based Charity, restricted financing ability Income: £280k Cost of redundancy: £38k Loan schedule: 60 months Jobs saved: 5 |
For more information get in touch with the Corporate Strategies team
Ric Miller Joe Douglas
E: rmiller@corporatestrategies.co.uk E: jdouglas@corporatestrategies.co.uk
M: 07764 158 212 M: 07850 511 697