The Cost of Staff Departure at Swansea Council
A recent report reveals that Swansea Council paid a substantial sum of £255,000 to a departing employee in 2023-24. This amount was part of 39 exit packages granted to staff opting for early retirement or voluntary redundancy, with an additional 17 packages for those laid off. One notable point is that these staff members also included teachers from the council.
The council clarified that the £255,000 package was not a lump sum or a ‘golden goodbye,’ but was based on the individual’s service duration and pension contributions. Such exits are common in both public and private sectors to reduce payroll expenses and avoid forced redundancies. Although there is an initial cost, it is usually recovered if the position remains unfilled.
- The total cost of the 56 exit packages in 2023-24 amounted to £1.62 million.
- The top three packages, including £255,000, £184,000, and £133,000, represented a significant portion of this cost.
- In the same period, 267 of the council’s 11,000 staff earned over £60,000.
- The highest-paid officer was the chief executive, Martin Nicholls, earning £162,379.
The council’s financial accounts also highlighted additional details:
- An excess of £3.5 million from council car park income, after deducting expenditures.
- A total expenditure of £1.03 billion on wages and essential services like education and social services in 2023-24.
- Over half of the budget was covered by various sources, including council tax, grants, fees, and business rates.
Financial Outlook and Challenges
The exit packages and financial performance were discussed during a recent meeting of the council’s governance and audit committee. Financial director Ben Smith mentioned the stability observed in 2023-24 but expressed concerns over future funding uncertainties, especially with respect to Welsh Government allocations in the upcoming years.
The council is gearing up for budget decisions for 2025-26, with the Labour UK Government due to release its first budget shortly. This is amidst ongoing budgetary challenges faced by local authorities and the need for careful financial planning in the coming years.