Local Government: Redundancy Pay

(asked on 6th December 2017) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Communities and Local Government, whether his Department plans to introduce proposals for a cap on the amount of money senior council officials are entitled to receive in payments when leaving the employment of local authorities.


Answered by
Marcus Jones Portrait
Marcus Jones
This question was answered on 14th December 2017

Currently regulations give local government employers discretion to make a redundancy payment up to a limit of 104 weeks (2 years). In February 2016, the Government consulted on proposed changes to this regime, including a central framework to cap redundancy comensation payments in the public sector.

My Department has developed proposals specific to local government, which would limit redundancy payments to a maximum of 15 months' salary. Further announcements on these will be made in due course.

In addition, in 2016 the Government legislated to cap exit payments across the public sector to a maximum of £95,000. A consultation on proposed implementation arrangements will be forthcoming in 2018.

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