ACE pays out £3.9m in redundancy packages

152 compulsory redundancies in 2013-14
Patrick Steel
Arts Council England’s (ACE) annual report 2013-14 shows that the organisation paid out £3.9m in redundancy packages last year to compensate 152 compulsory redundancies.

A restructure in July 2013 saw redundancies made across the organisation, including four executive director roles. The report shows four exit packages worth between £100,000 and £149,999 were paid out as part of the total.

ACE’s 2011-15 funding settlement requires it to reduce its administrative costs by 50% and last year’s redundancies follow the loss of 32 posts in 2012-13.

The average number of full time equivalent employees at the arts council has dropped from 531 in 2012-13 to 413 in 2013-14. ACE has saved £4.9m on salaries and wages in the same period.

The redundancies come against a backdrop of reduced government funding, with grant-in-aid falling from £469.2m in 2012-13 to £458.69 in 2013-14. This will be cut by a further 5% in 2015/16.

Alan Davey, ACE’s chair, states in his introduction to the annual report: “The 29% cut to our investment funds since 2010 and the 50% cut in our own administration costs have presented us with new challenges.

“While it has been a year of further austerity and we have had to work very hard while settling into a much leaner organisational structure, our response has been to deal decisively with financial realities while reaffirming our commitment to creative ambition.”

Earlier this month ACE announced its funding for Major Partner Museums (MPMs) and National Portfolio Organisations (NPOs) for 2015-16, with 21 MPMs receiving £22.6m, and 670 NPOs receiving £339.5m.

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