Ministerial Severance: Reform

Kevin Brennan Excerpts

Tuesday 6th February 2024 Commons Chamber

[Anna Firth]

I completely agree with my hon. Friend’s brilliant point, which brings me naturally to my next point. The last Labour Government had the opportunity to amend the 1991 legislation in any one of the 13 years they were in office. Instead, they chose to do absolutely nothing. Even more outrageously, following Labour’s defeat in the 2010 election, when the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) left that infamous note saying, “Dear Chief Secretary, I’m sorry, I’m afraid to tell you there is no money left.”—

[Kevin Brennan (Cardiff West) (Lab)]

It did not say that.

[Anna Firth]

It said, “I am afraid to tell you there is no money left.”

[Kevin Brennan]

That is not what he said.

[Anna Firth]

That is an exact quote: “There is no money left.” I do not mind saying it again, because that is the mess that Labour left us with. The point here is that having said that there is no money left, what did outgoing Labour Ministers do? They pocketed £1 million in that year in severance pay. In today’s money, that would be £1.6 million—truly shocking. That was irresponsible then, and their actions are 100% hypocritical today.

In stark contrast, when we entered office, what was our approach when we saw the mess that Labour had left us in? We cut our ministerial salaries and have kept them frozen ever since.

--- Later in debate ---

[Sir Michael Ellis (Northampton North) (Con)]

I begin by making a disclosure to the House, which is of course in the public domain and has been for some time: I have received severance pay in the past. I want to make that clear from the outset. I also want to make it clear from the outset that, in my respectful view, some of the ad hominem attacks on named Members of Parliament that we have heard damage the institution of politics rather than working in a partisan way. Those individuals did not do anything wrong: they were part of a system that allocated funding to them, so there should be no legal or moral opprobrium attached to them in their absence, whether they have been notified or not. It is fine to say that the system ought to change, but surely it is not fair to criticise people for being subject to a system that has not been changed.

As I said, I have received severance pay, but I served in Government roles of one sort or another for over 10 years, if one includes non-ministerial positions. In terms of ministerial positions, I served as Deputy Leader of the House of Commons, Minister for the Arts, Minister for Transport, Solicitor General, Attorney General for the first time under one Prime Minister, Paymaster General, Minister for the Cabinet Office, and Attorney General for the second time under a second Prime Minister. In fact, I served under four Prime Ministers in one role or another, and in Cabinet on three occasions. Should I not receive severance pay?

The hon. Member for Sefton Central (Bill Esterson) asked where else this would happen in the outside world. Well, where else in the outside world would we have a situation where there are no redundancy arrangements, no notice periods, no contract between the parties and no consultations, and the employees—if they were employees—could be removed without cause? I am not criticising those things: that is the way Government works. Ministers take on those roles knowing that that is the position, so they should not criticise it—that is the way the cookie crumbles, and those who do not like it should not take the position.

However, there is no point in comparing chalk and cheese. The system operates in a different way from the outside world: we have a constitutional situation in which the Prime Minister, whether he or she be Labour or Conservative, has to have the right of hiring and firing his or her ministerial team. That is an essential prerequisite of the role, and the way it must work—the only way it can work—is by giving the Prime Minister that primus inter pares role, where he or she has that function.

[Kevin Brennan]

I agree with the right hon. and learned Member: Ministers should get severance pay, as I did when I was a Minister. That is absolutely right, but the motion does not suggest that they should not. He was a former Deputy Leader of the House; does he think it is right that a Deputy Leader of the House who served for 81 days should receive three months’ severance pay? That is the question that we are debating today, not the general principle. I agree that there should be appropriate severance pay, and I think other Labour Members do too, for exactly the reasons he has given.

[Sir Michael Ellis]

When one has a system in law, whether it was created 10 years ago, 30 years ago or 100 years ago, it must apply to all. If the system falls out of favour, it can be reviewed, but the example that the hon. Member has criticised is of someone who served in a role and was entitled to take a severance payment. As he himself alluded to, people in the last Labour Government received these payments; in fact, they received payments that were statistically more generous than has been the case under this Government—some £1.6 million in real terms in today’s prices. As has already been said, none of the four Labour leadership candidates in 2010 returned their severance pay; I think they were under some pressure to do so at the time, but declined. When Ministers have no contract, no notice period and no consultation or redundancy arrangements, and can be removed without cause, it is right that that is differentiated from what happens elsewhere, because there is an increased risk.

--- Later in debate ---

[Justin Madders (Ellesmere Port and Neston) (Lab)]

If damaging the economy and people’s living standards, as well as degrading our health service, councils and other public services, were not enough, this Government have also enriched themselves and cost the taxpayer close to £1 million as a result of their sheer incompetence and infighting. We have found out that Ministers—some of whom were in post for only a matter of weeks, faced serious accusations or were ineligible through age—have received handsome sums of taxpayers’ money.

The question on my lips, and no doubt the lips of many of our constituents, is: why are Ministers given such special treatment? Just one day in post as a Cabinet Minister entitles an individual to £16,876 as a severance payment. For one day in the job for a Minister of State, it is £7,920. One day as a Parliamentary Under-Secretary of State gets them £5,594. These are vast sums of taxpayers’ money available only to a select few, and they come with absolutely no caveats for performance, conduct or length of service.

We do not disagree with the principle of loss of office payments to Ministers; like all workers, they should be entitled to some form of payment in the event of suddenly losing their job and income through no fault of their own. However, I suspect many of my constituents will not have much sympathy for that, given that those in such a position will still have their MP’s salary to fall back on, and we know that some Members have other sources of income. Those salaries are well in excess of what most of our constituents earn. Being a Minister is not easy, I am sure, but that should not distract from the fundamental issue that the treatment given to those in governmental positions is completely different from that given to the wider public—even the members of the public working in the very same Departments that those Ministers serve.

[Kevin Brennan]

One person who cannot fall back on their MP’s salary is Peter Bone, who was the Deputy Leader of the House for 81 days and received a redundancy payment, even though he is over 65, of £5,593. He is no longer the MP for Wellingborough, but should we not be told whether he has paid the money back, not least because there is to be a by-election in that constituency in a few days’ time?

[Justin Madders]

I thank my hon. Friend for making that very good point. I am sure Peter Bone’s former constituents, many of whom will have had calls from the Department for Work and Pensions when benefits overpayments were made and they had to pay them back, will expect him to have done exactly the same as they had to do. It is clearly a matter of public interest.