The Government remains committed to its plans to cap all public sector exit payments at £95,000 despite widespread opposition.
Whitehall announced last February its intention to crackdown on public sector payoffs in a move that will hit local government workers and others in the public sector.
The aim is ‘to ensure greater consistency between public sector redundancy compensation schemes and value for money for the taxpayer.’
As well as introducing a £95,000 cap on exit payments, it will introduce measures to ‘clawback’ redundancy compensation when an individual returns to the public sector shortly after receiving an exit payment.
The Government has today published the response to the consultation on its proposed reforms which revealed the majority of respondents expressed opposition to the proposals.
Despite this opposition, the Government plans to push on with the reforms.
‘The new framework ensures a fair and appropriate level of compensation is provided for employees who are required to leave public sector jobs, whether on a mutually agreed or voluntary basis, or through compulsory redundancy,’ a Government spokesperson said.
Each Government department will now be required to produce proposals for reform for each workforce along lines consistent with the Whitehall’s plans.
The Treasury expects the necessary changes to be made within 9 months of the publication of the consultation.
