In the pre-budget report the chancellor, Alistair Darling, announced the injection of funds over the next two years to be used to strengthen the position of Jobcentre Plus, increase employer engagement with Jobcentre Plus and extend Train to Gain schemes to help people develop skills prior to being made redundant.
John Philpott, Chief Economist at the CIPD, said: "In the face of the avalanche of job cuts we're predicting over the winter, the package of support for people facing redundancy is welcome. These initiatives demonstrate the Government recognises the severity of the looming jobs crisis.
The extension of pre-redundancy support from the employees of large firms to those working in SMEs and the provision of more pre-redundancy training to help prepare people for the jobs market is particularly welcome. However, it is a shame that the National Employment Partnership appears to be focusing only on larger employers."
With such a high proportion of people employed by smaller employers, it is essential for Government to find ways of engaging these employers in efforts to find jobs for the unemployed.
Click HERE to find out how else the pre-budget could inpact HR. Plans to make changes on vehicle excise duty (VED) can have implications onfleets, income tax for higher earners will increase and VAT changes could discourage employees from saving for their pension.