University of Derby hands staff £200,000 in Love2shop Gift Vouchers

The University of Derby is to use more than £200,000 from a VAT windfall to hand staff up to £100 each in free shopping vouchers.

Officials say Chancellor Alistair Darling's decision to cut VAT from 17.5% to 15% means it will save £500,000 on its spending. It will also use £250,000 of the cash to offer training courses to local businesses hit by the credit crunch. And £39,000 will be spent on new tennis courts and employing a sports officer.

All 2,700 staff will receive either £50 or £100 vouchers, worth a total of £211,000, depending on whether they are employed full or part-time.

The Love2shop (High Street Gift Voucher) vouchers can be used at High Street stores including Argos, Debenhams, House of Fraser, Boots, Comet, HMV, Warehouse, Threshers, River Island, New Look, BHS, WHSmith and Waterstones.

The university says the vouchers will boost business in Derby because they will be redeemable at a range of high street stores.

University vice-chancellor Professor John Coyne said he had thought about how he could help both staff, students and the wider community. "The voucher scheme is our way of rewarding staff for a successful year here and rather than giving cash, we are giving away vouchers which can be spent locally".

George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber also praised the university's scheme. He said "In setting up their £250,000 fund to support firms in training and skills-building, the university is being more than generous. "It is taking a far-sighted view of how to help businesses cope with the credit crunch and prepare for future recovery. A number of major organisations in the region are determined to come out of the current downturn fighting fit and ready to compete".