More than £75m paid out in Scotland to cover wages for insolvent businesses

Figures released to The Herald following a Freedom of Information request show that over £1 billion was paid out across the UK between 2013/14 and 2017/18.

The total sum includes £802 million for redundancies, £138 million for pay arrears, and £77 million for protective awards.

Ewan MacDonald-Russell, head of policy for the Scottish Retail Consortium, said: “It’s disappointing, but sadly not surprising to hear so many retail workers have had to rely on these payments following the collapse of their employer’s business. We all know the challenges facing the retail industry as it grapples with technology, changing consumer behaviour, and ever increasing costs.

“These figures are a vivid reminder of the hardship faced whenever any business falls into administration. It should also reaffirm the importance of keeping down the cost of business at a time where trading is difficult.”

A spokesperson for the UK government said it “strives to support all businesses facing challenges”, and added: “This is why we have slashed business rates by a 1/3 for the majority of smaller businesses, and created a £675m fund to help high streets adapt for rapid change.”

The Insolvency Service is workign on new guidance to help employers meet their responsibilities on collective redundancy consultation, “which can be complex and difficult to apply in a real life insolvency situation”.