(8 years, 10 months ago)
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The Chief Secretary to the Treasury (Greg Hands)
On 25 November 2015 the Government announced in the spending review that it would consult on cross-public sector action on exit payment terms, to reduce the costs of redundancy pay-outs and ensure greater consistency between workforces.
Today I have launched this consultation. The consultation document invites views on the range of options the Government are looking at, including:
Setting a maximum tariff to calculate exit payments at three weeks’ pay per year of service
Capping the maximum number of months’ salary that can be used to calculate redundancy payments to 15 months
Reducing the cost of employer-funded pension top-ups to early retirement as part of redundancy packages
Introducing a tapering element the closer individuals get to their retirement age
Introducing a salary cap on which exit calculations can be based
The consultation is available at: https://www.gov.uk/government/consultations/further-consultation-on-limiting-public-sector-exit-payments
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