Scotland public sector redundancy policy costs £27 million annually

Reports indicate that approximately 800 public-sector employees in Scotland are costing taxpayers at least £27 million per year while waiting for redeployment into new roles. The figures, originally reported by The Sunday Times, involve workers across the NHS, central government, local councils, and various quasi-autonomous non-governmental organizations (Quangos).

The situation stems from a long-standing Scottish Government policy established in 2007 to avoid compulsory redundancies. Under this policy, when roles become obsolete due to reorganization or budget changes, employees are placed in a redeployment pool to seek alternative positions or retraining. While intended to retain institutional knowledge and reduce worker anxiety, the policy has resulted in staff remaining on full pay without fixed roles for extended periods.

Specific findings suggest that at least 255 workers have been without a fixed post for over a year, with 49 individuals remaining on full salaries for five years or more. In one cited instance, an NHS Highland worker reportedly received full salary and benefits for 17 years without a specific job. The Scottish Conservatives have called for an investigation by the Auditor General for Scotland, describing the situation as a “ghost workforce” and a “gravy train.” The Scottish Government has maintained that its no-compulsory-redundancy policy remains in place and that public bodies are expected to deliver value for money.