Public Sector Exit Payments Debate

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Department: HM Treasury
Friday 5th February 2016

(8 years, 10 months ago)

Written Statements
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Greg Hands Portrait The Chief Secretary to the Treasury (Greg Hands)
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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

[HCWS514]