Restriction of Public Sector Exit Payments Regulations 2020

Earl of Devon Excerpts

Wednesday 23rd September 2020 Lords Chamber

[The Earl of Devon (CB)]

My Lords, this is not my area of expertise but since April I have been assisting Exeter City Council with its Covid response, chairing a visitor economy recovery group, from which I have learned first hand about the dedication and diligence of local government staff, the current unprecedented demand for their services and the budgetary cliff off which they are being driven.

These regulations come at a challenging time for local government. Although I generally support the aim of reining in six-figure public sector pay-offs to high earners, that is not the concern. The worry is the impact, as discussed by the noble Baroness, Lady Bakewell, of the pension strain payments for long-serving local government staff earning under £50,000. Those who have worked for many years in housing, benefits, environmental health or social work, and those who might have turned down much better-paid private work to continue their dedicated public service, stand to lose out on pension benefits that they have worked towards for decades if they are made redundant or seek early retirement after the age of 55. Why is that?

This is not a new issue. I see from Hansard that it was raised a number of times in November 2015, along with the serious concerns being raised now by the Local Government Association and the ALACE, which were well rehearsed nearly five years ago.

Local government is staring into a very bleak winter, with redundancies looking inevitable. The regulations as drafted will hit the pensions of the longest-serving and the most modestly paid. They will remove much-needed staffing autonomy from local councils, and, given that there is no equality impact assessment, they may well impact certain groups disproportionately, but we do not know that. Exeter City Council, for example, has over 700 staff members, whose average age is over 50. Why has no EIA been published?

I understand that the Government’s preferred solution is to change the Local Government Pension Scheme to avoid significant pension reductions. However, the MHCLG consultations commence this month but do not close until November. Why do these changes to local government pensions not take place at the same time as the regulations, and why wait until now to begin a consultation?

Loyal long-term local government employees are being poorly treated and taken for granted. This is not the message that the Government should send out just as they tighten the lockdown. What assurances can the Minister provide?

Finally, I understand that the medical professional bodies, such as the GMC, are concerned that they might be included under these regulations. Will the Minister please provide some clarification on that point?