Capacitybuilders redundancy costs were more than £500,000

Figures released by the Cabinet Office show the combined costs of closing the infrastructure quango and the Commission for the Compact were almost £800,000

Cabinet Office
Cabinet Office

The former sector infrastructure quango Capacitybuilders made redundancy payments totalling £529,009 to its 38 employees when it closed at the end of March.

The figure is revealed in Capacitybuilders’ annual report and accounts for 2010/11, which shows that two directors received severance payments in excess of £40,000 each.

Judith Wilson, director of finance, planning and corporate services, received £41,471 to push her salary into the £125,000 to £130,000 bracket.

Jon Fox, director of strategy and programmes, received £44,170, taking his earnings to between £110,000 and £115,000, the accounts reveal. Eighteen staff received redundancy payments in excess of £10,000 each.

The accounts say severance packages were paid "in accordance with contract terms and with compensation terms agreed with the Cabinet Office".

The Commission for the Compact, which closed at the same time, made redundancy payments of £93,055 to 13 staff. Richard Corden, the chief executive, received the highest severance payment of £18,118, which elevated his salary for the year to £91,286.

The two non-departmental public bodies, which were sponsored by the Office for Civil Society, were abolished as part of the government’s public bodies review.

The Cabinet Office, which houses the OCS, sent Third Sector the two sets of accounts after it submitted a Freedom of Information Act request in August asking about the costs of closure and projected savings.

The response, received this week, outside the 20 working days response limit for such requests, said that in addition to termination costs for staff the two organisations had incurred "direct external costs" of £147,359 since the end of March.

"This figure includes the employment of a small number of Capacitybuilders and Commission for the Compact staff to carry out wind-up actions (notably the production of the annual report and accounts), ongoing ICT provision during the wind-up period and some travel," the Cabinet Office reply said.

The combined cost of winding up the organisations and redundancy payments is £769,423.

The Cabinet Office estimated that the closure of the two public bodies would save £70.4m over the current spending review period, which ends in 2015.

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