To ask the Secretary of State for Education and Skills what estimate he has made of the costs of any redundancies which will arise from the proposed restructuring of learning and skills councils including the costs of payments to individuals and the costs of payments into the pension scheme.
The LSC has been undertaking a major restructuring exercise under theme 7 of its 'Agenda for Change' reform programme. This exercise is expected to be completed later this summer, and will result in some 1,100 fewer staff posts across the whole of the organisation.
The LSC set aside provision of £55.7 million in its 2005-06 accounts to cover the one-off costs associated with these staff changes. Of this, £30.4 million is for redundancy and severance costs, £2.1 million for pension costs and £2.29 million for outplacement costs. The remainder is for property and HR related activities. Final outturn figures for 2006-07 are not yet available but will be published in the LSC's annual report and accounts in July.
We expect the LSC to achieve year-on-year savings of £40 million as a result of these changes. This is in addition to the £50 million savings it is already making year-on-year compared to predecessor bodies.