Thomas Bridge 02 January 2013

MP damns ‘eye watering’ council chief pay-offs

Compensation packages of £100,000 or more were granted to over 100 departing council officials last year, research suggests.

Pay-offs ranging between £100,000 and £420,000 were given to 135 officials during 2012, the findings state, prompting local government minister Brandon Lewis to urge town halls to end current pay-off practices.

Kent CC is reported to have given the largest payment to a departing chief executive, with former managing director Katherine Kerswell being given £420,000 on top of salary and pension contributions.

Research from The Telegraph finds Birmingham City Council gave 27 staff pay-off packages between £100,000 and £150,000, while Newcastle City Council granted 12 six-figure payments to departing staff.

Dorset CC gave seven executives a combined £1.03m in compensation, with South Gloucestershire Council providing six-figure pay-offs to eight employees.

Fenland DC – which has 95,000 residents – is also reported to have provided similar payments, giving £370,400 to retiring chief executive Tim Pilsbury in 2010/11.

Lewis said: ‘I fail to see any credible business case for such eye-watering sums being shelled out. Dishing out such huge amounts of cash without a second thought shows a lack of respect for the public purse and good councils want help to end this.

‘These pay-offs are a legacy of Labour's golden goodbye gravy train which we are putting a stop to,’ Lewis added.

A Local Government Association spokesman said: ‘To help manage government funding cuts councils have reduced significantly the number of senior staff and middle managers. Last financial year they cut £1.4bn from the local government paybill, with 90% of local authorities reducing senior management costs in the process.

‘This has led to a small spike in one-off redundancy payments which is mostly responsible for the increase in the number of officers receiving more than £100,000.’

To search through data on council pay-offs, visit MYB Intelligence.

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Brighton & Hove City Council
£123,000 - £139,000 plus up to £10,000 relocation expenses
Your opportunity to make a huge impact. Brighton, East Sussex
Recuriter: Brighton & Hove City Council

Service Director Children’s Quality & Improvement

Barnsley Metropolitan Borough Council
c.£110,000
Innovation. Community. Impact. Barnsley, South Yorkshire
Recuriter: Barnsley Metropolitan Borough Council

Assistant Director of Communications

York and North Yorkshire Combined Authority
£80,216 - £89,556 + relocation support
The York and North Yorkshire Combined Authority York, North Yorkshire
Recuriter: York and North Yorkshire Combined Authority

Chief Operating Officer

Solace
£95k - £120k
Solace is the UK’s leading membership body for local government professionals. Nationwide
Recuriter: Solace

Support Worker

Durham County Council
Grade 4 £25,583 - £26,824 Pro-rata
WHAT IS INVOLVED?   You should be an enthusiastic team player who takes pride in providing excellent customer service.  You will have good communicati Spennymoor
Recuriter: Durham County Council
Linkedin Banner