THE cost to the borough council for terminating staff contracts rose by more than double last year, topping £400,000.

In the 2017/2018 financial year, Basingstoke and Deane Borough Council incurred costs of £426,506 for all employment termination.

Of this, £394,752 related to redundancies and £31,754 related to settlement agreements.

This figure is more than double the amount spent by the borough council in the previous financial year where termination costs totalled £172,783.

Councillors are set to debate the annual report at a human resources committee meeting on Monday.

The report states: “The level of redundancy and early retirement costs is calculated in accordance with the protection of employment policies and discretionary compensation tables agreed by this committee.”

It is also stated in the report that the significant increase is due to the termination of five employee’s contacts, four of which were over 55 at the age of termination and therefore were entitled, under the local government pension scheme rules, to early access to pension.

The report adds: “In this scenario the council is required to make up pension payments to normal retirement age.

“All the payments referred to in this report were made in accordance with the council’s pay policy statement.”

The termination costs consisted of redundancies of £177,265, pension costs of £210,926 and settlement agreement costs of £31,754. A further £6,561 was paid in lieu of notice.

The report added: “These costs were paid to the employees concerned or their representatives and, in respect of pension costs, the Hampshire pension fund.”

Head of HR and organisational development at the borough council Anne-Marie Scott said: “The employment termination costs between April 2017 and March 2018 relate to redundancies and pension costs.

“Redundancy and pension costs can differ from year to year as they are entirely dependent on the employee’s length of service and age at the time of leaving .

“The council has an obligation as an employer to make these payments in accordance with the council’s agreed pay policy statement.”