A consultation has been launched outlining how the Government will introduce a £95,000 cap to stop what it describes as “huge” exit payments when public sector workers leave their jobs.

More than 1600 highly-paid workers received payments of above £100,000 in 2016–17 when they left public sector roles, costing a total of £198 million. In England, local government six-figure payments alone accounted for £98 million.

To ensure exit payments are value for money for the taxpayer, the consultation (which can be found at https://www.gov.uk/government/consultations/restricting-exit-payments-in-the-public-sector) sets out how the Government will introduce the cap.

It includes a draft version of the Restriction of Public Sector Exit Payments Regulations 2019, as well as accompanying guidance and directions, and is open for comments until 3 July 2019.

Chief Secretary to the Treasury Liz Truss said: “It is clearly wrong when people leave public sector roles with massive payoffs. It incenses the public when they see their hard-earned money used badly like this”.

Exit payments under the cap — covering redundancy lump sums and pension top-up payments — will, she explained, continue to be available so that public sector employees can support their families, find new employment or have a bridge until retirement age.

The Civil Service, local government, police forces, schools and the NHS are included in a first round of implementation which will cover the vast majority of public sector workers.

The policy has, Ms Truss concluded, been carefully designed to protect long-serving, lower-earning staff.

Last reviewed 13 May 2019