Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what the average time taken was for payments to be made to people who made a claim against the Insolvency Service's Redundancy Payments Office in (a) 2015 and (b) 2017.
Statutory payments from the National Insurance Fund are made under the provisions of the Employment Rights Act 1996. The ministerial target for 2017/2018 is to process an application for payment within 14 days on average; and the Insolvency Service looks to process and pay 95% of claims within 6 weeks of receiving an application, and all supporting information, from a claimant.
Claims received are generally comprised of up to 4 components, depending on exactly what is claimed by the applicant. Each component is individually assessed and either paid, rejected, or withdrawn, depending on whether it fits the criteria for payment. Details of claims paid are shown in table 1 below
Table 1 – Details of claims and components paid | |||||
Year | Claims Received | Total Components Processed | Average days to pay components | Of components paid, % in 6 weeks | % of total components processed which were paid (note 1) |
2015 | 61,797 | 191,531 | 14 | 97% | 67% |
2017 | 57,950 | 175,270 | 15 | 96% | 65% |
Note 1 – The remainder of components were either rejected or withdrawn
Speed of processing in 2017 was adversely affected by the complexity of dealing with claims from former employees of Monarch Airlines.