EU offers life-line to help redundant workers- but will Government take it?

2.11.00pm BST (GMT +0100) Wed 6th May 2009

West Midlands LibDem MEP Liz Lynne has today welcomed a vote by the European Parliament to extend the 'European Globalisation Adjustment Fund' which would allow European Governments to apply for millions of pounds in funding to help retrain workers made redundant due to the financial crisis.

Originally the fund was only available if a company laid off 1000 of its employees, but the new agreement will half this number- offering help when 500 workers loose their job. The deal will also increase the amount of money available to Governments to help pay for retraining.

Speaking after today's vote Liz Lynne, who is Vice- President of the Parliament's Employment and Social Affairs Committee, said:

"This new funding would offer a chance for people who have lost their jobs to retrain and find new work as soon as possible. Today's vote by Parliament is a clear message that MEPs want to see action taken quickly and for money to be made available to people as soon as possible.

"I am disappointed that despite the need for quick, decisive, action the UK Government is once again dragging its feet. Other countries such as Spain have been eager to apply for funding and to start helping workers, but Gordon Brown appears once again to be fiddling while the UK burns.

"The idea that existing services such as Job Centre Plus will be able to help the huge increase in people who have been made redundant is another staggering example of the Government's short-sighted and illogical thinking. Schemes like the Globalisation readjustment Fund, which can be used a temporary measures to help get through this crisis, are crucial to the UKs economic fortunes.

"I strongly urge the Government to immediately apply for assistance from the fund- to help employees of every company that is shedding jobs in the UK.

ENDS

Notes to editors

Today's vote by Parliament confirms a deal created by the Council of Ministers (made up of Ministers from all the EU Member States) on the 7th April. The deal still needs to be confirmed by the Council at its next full meeting.

Despite awaiting the Council's confirmation the money will be able to be used retro-actively, applications for funding have been open since May 1st.