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Update On What Has To Be In Reserve Fund


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Hi all, I had a very interesting conversation today with the PSLA. In fact it just goes to show that sometimes advice can get altered through the re-telling, a bit like chinese whispers, because it's not as simple as '3 months wages and rent and redundancy money'.

 

In terms of the calculation, what they said is this: If the setting were to close tomorrow, what would your outstanding liabilities be? And that figure is basically what your reserve fund should be. So, if staff have a month's notice in contracts, then only a month of wages needs to be kept. Similarly with your lease, if it's only a month's notice, then that is what you should calculate. Also, you need to take into account any utility bills, so if you pay quarterly then 3 months costs for those.

 

I've still got to do the exact calculations for our setting, but it seems that we won't need anything like the £8-10k that I had imagined we would need in our reserve. Phew!

 

On the subject of committee liability which came up on my previous post, apparently our setting has insurance to cover any personal liability we might incur. This would be worth looking into for other PVI settings I think.

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On the subject of committee liability which came up on my previous post, apparently our setting has insurance to cover any personal liability we might incur. This would be worth looking into for other PVI settings I think.

 

The PSLA's insurance policy adapts easily if you decide you want that cover

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Don't forget statutory redundancy pay, from memory up to 10 weeks of pay depending on service. Do a google search for the table....

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Plenty of redundancy calucalations on www.business-link.gov.uk.

 

There are others but they are inaccurate to say the lease!.

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Yes, sorry meant to say also redundancy, thought I had but my brain is in Monday mode.

 

But still not quite as much as I had been expecting, as our staff haven't been with us for years and years.

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