City AM looks at BHS pensions and staff payouts
June 6, 2016
City AM reporter, Helen Cahill delves into the arrangements for the government to make payments to BHS staff being laid off by the Administrators, quoting our Business Risk Adviser Nick Hood:
Redundancy payments due to BHS staff will ultimately come out of the public purse, via the National Insurance Fund, and could cost taxpayers £12m, according to Nick Hood, a business risk adviser for Opus Restructuring.
He added: “But I think that number might be a bit low. At Comet, the cost was nearer £25m, and they had fewer staff.”
The payouts are likely to be received by staff 5 or 6 weeks after they are laid off, but Hood said the time period would depend on the number of applications being handled by the government at any one time.