Government responds to reported bonuses paid to Bulb’s staff

The government said the ’employee retention scheme’ was consistent with Bulb’s special administration regime

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The government has responded to reports claiming that collapsed supplier Bulb paid millions in bonuses to retain its staff since entering into the special administration regime.

Sources claimed that an employee retention scheme was considered by the administrators as a necessary measure to help the business afloat.

In recent months, Bulb has become the largest company to collapse as a result of skyrocketing energy prices. 

Last week, addressing the Business, Energy and Industrial Strategy Committee, Bulb‘s Chief Executive Officer and Founder confirmed that his annual salary remained £250,000 despite the special administration.

A BEIS spokesperson told ELN: “Bulb’s administrators have set up an employee retention scheme in order to maintain operational effectiveness and support to customers.

“The special administrator of Bulb remains legally obligated to keep costs of the administration process as low as possible – which the employee retention scheme is consistent with.

“The government will seek to recoup costs at a later date, ensuring that we get maximum value for money for taxpayers.”

On Monday, it was reported that the owner of British Gas, Centrica joined the bidding process to acquire parts of the collapsed UK energy supplier Bulb’s business.

Last month, ELN reported that Bulb’s special administration was predicted to cost taxpayers at least £1.3 billion more than the original £1.7 billion estimate.

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