25,000 workers in the rapidly growing domestic renewable energy services sector are at risk of losing their jobs before Christmas due to the coalition government’s poorly thought-through FITs policy. At the same time, the Office of National Statistics has announced new unemployment figures showing an a rise of 129,000 in unemployment*.
These worrying statistics support The Chartered Institute of Personnel and Development’s report on Monday, which claims that the UK labour market faces a “slow, painful contraction” with firms delaying staff recruitment.
HomeSun has filed an injunction against the coalition government to stop them making another 25,000 unemployed.
Daniel Green, CEO of HomeSun says: “There is a desperate need for jobs in the UK and FITs has created 25,000 jobs and 3,000 enterprises. These jobs are nationwide and performed by young and old. It seems madness to be cutting this growing industry off at the knees and we are going to fight it all the way to court on two counts:
1. that the government consultation is a sham because it has already decided to change the tariff from 12th December. Making decisions before the end of the consultation period on 23rd December indicates that the decision is a foregone conclusion and makes a mockery of the consultation process
2. that the 12 December cut-off date is irrationally short, since it fails to provide the industry with reasonable time to re-orient their businesses to a reduced tariff.
“The coalition government’s argument is that at current levels the FITS budget will run out too soon, but FITs generates in excess of £280 million from taxes and VAT, whereas the cost has only been £220 million. That’s a net profit of £50 million but it seems that the Treasury and DECC are not talking.
“In addition to throwing away £50 million, the Department of Work and Pensions will have to spend millions in unemployment benefit for all the thousands of people who will lose their jobs and investor confidence in what was a growing sector will be destroyed.”
The FITs review consultation: http://www.decc.gov.uk/en/content/cms/consultations/fits_comp_rev1/fits_comp_rev1.aspx
* the rise in unemployment refers to the period July – September 2011, compared to April – June 2011
The ONS statistics on unemployment: http://www.ons.gov.uk/ons/publications/index.html