Thomas Bridge 24 January 2014

Public sector using staff 'pay offs' to hide failings, MPs warn

Public sector organisations are using taxpayer's money to cover up their own failures and gag whistleblowers, a committee of MPs has said.

The Public Accounts Committee (PAC) said it had encountered 'outrageous' examples of where confidentiality clauses might have been used to 'pay off' individuals who flagged up concerns about patient and child safety.

Data has revealed the Treasury approved 1,053 special severance payments when staff contracts are terminated over the three years to March, totalling £28.4m.

However the cost is expected to be much higher, with the Treasury not required to approve payments in areas such as local government and private sector providers of public services.

The PAC said it was still 'not clear' who would monitor pay off trends in local authorities and private companies working in the public sector.

'We are deeply concerned about the use of compromise agreements and special severance payments to terminate employment in the public sector,' chair of the PAC, Margaret Hodge, said.

'There is simply no way of knowing how many of these special severance payments have been made across the public sector - or whether the compromise agreements have been used to "gag" employees.'

While confidentiality clauses are not intended to stop individuals from speaking out, Hodge said people who were offered, or accepted compromise agreements had 'clearly felt gagged'.

MPs on the committee spoke of a 'worrying' lack of accountability and oversight around the use of compromise agreements and special severance payments in the public sector.

The Cabinet Office was told to issue guidance on the appropriate use of compromise agreements and special severance payments, outlining governance arrangements for their use and accountability.

'It is clear that confidentiality clauses may have been used in compromise agreements to cover up failure, and this is simply outrageous. We heard evidence of shocking examples of using taxpayers' money to "pay-off" individuals who have flagged up concerns about patient or child safety,' Hodge added.

'The end result here is the risk that public bodies reward failure just to avoid attracting unwelcome publicity.'

A Government spokesperson said: 'Hard-working people do not expect their taxes to be spent to cover up failure - that's why we took action and are bringing in significant changes, which will ensure severance payments are not used to reward poor performance or prevent "whistle-blowing".'

'We will examine this report and welcome that the PAC recognises the work we have already done.'

SIGN UP
For your free daily news bulletin
Highways jobs

Highways Supervisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£44982 - £54500
Job Title Highways Supervisor... Richmond
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Communication Support Worker

Durham County Council
£33,673 - £37,563 pro rata
Required – Temporary, grade 8, term time only plus 2 weeks.  8 hours per week until 31 August 2027. Are you looking or a role in school supporting th Durham
Recuriter: Durham County Council

Outreach Workers

Durham County Council
Grade 6 £29,071 - £32,046
We are looking for enthusiastic and committed practitioners to join our Family Hub Teams supporting children and Families to deliver services in comm Peterlee
Recuriter: Durham County Council

School Admin Officer

Durham County Council
£26,403 - £28,598 pro rata (pay award pending)
Required to work term time only plus 2 weeks during summer holidays. 8am-4pm. Wingate Nursery School is looking for an exceptionally organised, warm, Wingate
Recuriter: Durham County Council

Cleaner

Durham County Council
£24,796 pro rata (pay award pending)
Required to work 12 hours per week, 05.30-08.00 or 15.30-18.00 Monday-Friday, Term Time plus 3 weeks to be worked during school holidays. We are seek Durham
Recuriter: Durham County Council
Linkedin Banner