The London Borough of Barking and Dagenham has reversed a decision to cut redundancy payouts while it undertakes a major overhaul of public services.

The council had planned to reduce its redundancy package from 1 October 2016 but has now said it will pay staff at the existing rate while reorganisation is underway.

Cllr Twomey, the council’s cabinet member for finance, growth & investment, said: ‘In Barking and Dagenham we face a shortfall of over £60m - or one third of our budget - over the next three years on top of the £90m we have lost in the previous four years. We estimate we will have 500 fewer staff by 2020.

‘Two years ago the council decided to reduce its redundancy package from 1 October 2016. We have listened to staff concerns about this and have decided to support them by giving them certainty about what will happen if they are in a redundancy situation at a time when we are reducing our costs.’

Councillors have approved plans to radically transform council services by 2020. Moving away from traditional council departments, the The Ambition 2020 transformation programme will focus on solving residents’ problems, encouraging community resilience and greater commercial awareness.

Leader of the council, cllr Darren Rodwell, said: ‘Our plan is designed to focus council services – and those of our partners - on tackling these deep-seated problems with the resources and opportunities we’ve got. There’s clearly no quick fix, but the consultation has demonstrated overwhelming public support for change.’