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MAS review sparks £4m redundancy payout as staff numbers halved

by Alex Steger on Jan 30, 2013 at 12:45

MAS review sparks £4m redundancy payout as staff numbers halved

The Money Advice Service (MAS) has shelled out nearly £4 million in redundancy payments and halved its staff numbers following a strategic review of the organisation.

The body, which has attracted criticism for the size of its budget and the pay package of former chief executive Tony Hobman, now has 66 permanent members of staff, compared to 150 at the end of 2011, and 27 temporary members of staff.

In December 2011 MAS consulted with staff as it sought to reduce numbers to around 85.

A spokeswoman for the body said this target remained, and that there were a number of permanent positions which were as yet unfilled.

‘Last year we conducted an organisational review to transform our service. The objective was to ensure the right skills and capabilities were in place to deliver the new operational model. The review, which was completed by 31 December 2012, reduced the size of the organisation and ultimately around 70 existing job roles were affected.

‘A year on, the MAS transformation is almost complete and we are now a leaner organisation - transformed from one which was primarily configured to support, oversee and fund the work of others - to one that can deliver money advice directly to the people who need it.’

In November 2012 MAS appointed a successor to Hobman as chief executive after he resigned following criticism from MPs over the size of his pay package.

Former Department for Work and Pensions director of private pensions Caroline Rookes (pictured) will join the organisation in February on a salary of £140,000, compared to Hobman’s overall pay package of £350,000.

16 comments so far. Why not have your say?

Paul Howard via mobile

Jan 30, 2013 at 14:18

Rubs eyes in disbelief ...

Checks calculator

Yep £4 millions divided by 70 is indeed an average of just over £57,000 per person made redundant.

How the heck do they work out the redundancy terms?

Does anyone in Senior Management have any clue what they are doing???

Fire the lot of them for gross incompetence,

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Telford MS

Jan 30, 2013 at 14:32

MAS was set up in April 2011. Two years service would take maximum service to less than two years. How does Statutory Redundancy Pay fit in here?

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Julian Stevens

Jan 30, 2013 at 14:37

An average redundancy payment (all with OPM of course) of £57,000 per employee whose jobs have been found to be of no meaningful value to anyone at all? From an organisation that's only been going for a couple of years? And which, to date, has achieved.........just what exactly?

If there was any justice in this country, the perpetrators of this fraud would be slung in jail.

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Barman

Jan 30, 2013 at 14:43

Paul, 66 perm. plus 27 temp, mean that only 57 have gone which divided by £4Mil is actually £70K average. Although its not fair to average these figures as senior management would have got alot more than the staff below them.

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Confused

Jan 30, 2013 at 14:44

I would like to know, and I mean REALLY like to know if there is any other industry where the active participants are billed to fund a state run competitor to themselves???

I tell people how MAS works and who pays for it and it sounds like an absolute joke. Franz Kafka springs to mind!!!

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Martinifa

Jan 30, 2013 at 14:52

Most payments will most likely have been made to about 10 people.

I feel sick, what a waste of advisers and industry money.

For £4 million you could build the MAS website, what did they spend? I think about £250 million most of which was salaries.

I sometimes wonder why I bother, I work hard, see my profits stolen, given away and wasted, for what? To give guidance to consumers, in direct competition with my business.

It would be like taking money from a Conservative MP and giving to the Labour MP to run against them. You could see that happening I am sure!

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Bob Donaldson

Jan 30, 2013 at 15:07

Let us wait for the TSC report on the organisation to see if they have any teeth.

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Julian Stevens

Jan 30, 2013 at 15:19

The TSC doesn't have any teeth, Bob, which is one of the main problems and why I keep calling for the creation of an Independent Regulatory Oversight Committee with unassailable powers to prevent, amongst much else, abuses such as this.

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David Barnett

Jan 30, 2013 at 15:28

Just sent this thread to my MP. Perhaps others might like to do the same.

The lunatics are really running the asylum where MAS is concerned.

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Stewart Tomlinson

Jan 30, 2013 at 15:37

For once in my life I am completely lost for words. I recently received a letter from HM Treasury telling me that I was over-reacting to the plight of non-high net worth individuals who will be priced out of the advice market, as Money Advice Service will look after their needs!!!

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Simon Kershaw

Jan 30, 2013 at 16:22

Maximum statutory redundancy pay is available only after 3 years complete service. I wonder how many employees have been transferred in under TUPE to exaggerate the entitlement. The maximum salary used when calculating entitlement is £430 pw and the accrual rate is a maximum of 1.5 weeks x length of service.

I think the HR function at MAS is unfit for purpose.

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Richard Hardy

Jan 30, 2013 at 16:26

As I will be contributing to the £140,000 salary I and no doubt every contributor would like to know what are we getting?

I'm sick to death of having to reach into my pockets to fund these parasites.

Bloody scandalous.

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Usually found sitting on the fence

Jan 30, 2013 at 17:54

I worry about some of you on this thread. While it is fair to say the actual number made redundant is not quoted, it does say it effected 70 roles. However 150 minus 66 makes 84 staff gone. Could it be that the 84 were given redundancy and now they have 19 vacancies, which would be a bigger scandal, surely? 84 makes it £47,619 per employee, which is still incredibly high for 2 years service. But then you have those at the top of the tree, who would be laughing all the way to the bank!!

@ Simon Kershaw - I thought organisations could set redundancy at whatever level they wanted, but the individual paid tax on redundancy payments outside of the agreed limits. I may have got that wrong or confused.

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Michael Both

Jan 30, 2013 at 18:00

So worthless t*ssers become workless t*ssers .. and we have to pay for it because...?

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Victor via mobile

Jan 31, 2013 at 08:47

Not forgetting the £40M used to set it up? It's 9am and I'm already thinking of sitting in the corner and rolling a large one....

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Rodney Collins

Jan 31, 2013 at 09:27

Latest headline FSA investigate annuity pricing SHOULD READ FSA investigate gross misconduct at MAS! If only the public knew of what is going on!!

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