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18/05/2011

MoU re-signed today : 32,000 facing redundancy already helped as Insolvency Practitioners team up with Jobcentre Plus

Ministers extend a voluntary partnership between Jobcentre Plus and Insolvency Practitioners today that has so far helped 32,000 employees facing redundancy to find new employment, claim benefits and access training.


The 'Memorandum of Understanding' is an information sharing initiative initially set up by Phil Wilson, MP for Sedgefield. It facilitates close working between R3, the trade body for Insolvency Practitioners and Jobcentre Plus. Under the initiative, Insolvency Practitioners give ‘early warning’ of impending redundancies to Jobcentre Plus wherever possible, which helps the agency provide support to affected employees.


The Memorandum was originally signed in 2009 by Jim Knight and Ian Lucas, the Employment and Business Ministers at the time. There has since been routine information sharing and liaison between Jobcentre Plus and Insolvency Practitioners. A new Memorandum, aiming to foster yet closer working between partners, will be signed by Chris Grayling, Minister for Employment and Edward Davey, Minister for Employment Relations, Consumer and Postal Affairs.


Phil Wilson MP commented: “Losing a job is one of the most difficult situations people can face in their lifetime. It’s essential that they receive the right information at the right time to help them access training, claim benefits and find new employment. The Memorandum has already helped support thousands of individuals and, with many businesses continuing to struggle, it will play a key role for some time to come. With cross party support and with the recognition of the new Government, the joined up working between Jobcentre Plus and Insolvency Practitioners can go from strength to strength, to the benefit of the employees that sadly pay the price of business failure.”


R3 President, Frances Coulson added: “The insolvency profession sees the human cost of business failure on a daily basis. The Memorandum helps us to work with expert government agencies to ensure that those facing redundancy are given as much support as possible at a very distressing time.”

ENDS 


Notes to editors:

  • Since the Memorandum was signed in October 2009, it has affected 32,081 employees in 196 businesses facing insolvency (i.e. they have been offered support by Jobcentre Plus).

  • An enhanced Memorandum will be signed by Chris Grayling, Minister of State for Employment; Edward Davey, Minister for Employment Relations, Consumer and Postal Affairs; Phil Wilson MP; Stephen Speed, Inspector General and Chief Executive of the Insolvency Service; Frances Coulson, President of R3; Darra Singh, Chief Executive, Jobcentre Plus at an event starting on 18 May 2011 at 12:30 in Parliament.

  • For a copy of the Memorandum, please contact Esme Harwood on 020 7566 4220 m: 07887 843 518.

R3 Press Office

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see www.r3.org.uk for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
     
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.