Redundancy payments to former employees at Comet have so far reached £18.5m, according to newly released information.
In response to a question from Hull North MP Diana Johnson, Liberal Democrat Business Minister Jenny Willott said 4,838 people who lost their jobs working for Hull-based Comet Group Plc, had received statutory entitlements.
The Labour MP had asked how much had been paid out in statutory entitlements following the collapse of Comet and what estimate had been made of the total cost to the Exchequer of meeting all arising liabilities.
Ms Willott said: "The Insolvency Service's Redundancy Payments Services have paid out a total of £18,482,220 in statutory entitlements to 4,838 former employees of Comet Group Plc."
She said it was not yet possible to estimate the total cost to the Treasury as a Leeds employment tribunal had yet to determine how many of the ex-employees were entitled to compensation – a decision scheduled for July 17. As well as the payouts, there are also outstanding tribunal applications on statutory payments.
Ms Johnson said: "When Comet went into administration, most of the 6,800 staff, including several hundred in Hull, who lost their jobs received their statutory entitlement to outstanding wages. But, 18 months on, many others are still waiting to find out how much they're owed. With taxpayers footing the bill for this, so far to the tune of almost £18.5m, there are serious questions about the conduct of the private equity firm that owned Comet and the administrators."
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