Laura Sharman 10 April 2019

Treasury moves to ban six-figure ‘golden goodbyes’ in local government

Treasury moves to ban six-figure ‘golden goodbyes’ in local government image

The Government has launched a consultation into ending six-figure ‘golden goodbyes’ for public sector staff.

The Treasury is looking to cap exit payments at £95,000 for all public servants including those in local government.

Figures show that 1,600 public sector bosses received pay-offs of £100,000 or more in 2016/17 at a cost of £198m.

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.

‘That’s why we are capping exit payments to stop unacceptably large pay-outs for senior managers.’

However, the FDA union said the move ‘demonised’ senior managers to hide the human impact of the policy.

FDA general secretary, Dave Penman, said: ‘Not satisfied with previous cuts to the pay, pensions and redundancy arrangements of public servants, the Government is now imposing a further attack on redundancy terms. It is completely disingenuous of Liz Truss, the Chief Secretary of the Treasury, to dress this up as a way to 'stop large pay-outs for senior managers'.

‘As she knows all too well, when the Conservatives first mooted this arbitrary cap in 2015, it included protection for those earning less than £27,000 a year. Not only has this protection been abandoned, but it demonstrates that their blunt approach to capping redundancy payments will hurt teachers, police officers, fire fighters, doctors, paramedics and other individuals serving the public.’

The proposal was first mooted in 2015.

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Lawyer (Safeguarding Children)

Royal Borough of Greenwich
£45834 - £48819 per annum
Are you an experienced childcare Lawyer with local government experience and looking for variety and challenge?The jobGreenwich Legal Services is comm England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Lawyer (Planning & Highways)

Royal Borough of Greenwich
£40869 - £43860 per annum
Are you a Planning & Highways Lawyer with local government experience and looking for variety and challenge?The jobGreenwich Legal Services is committ England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Regeneration Projects Manager

South Gloucestershire Council
£47,778 - £52,120
This is an exciting opportunity to lead comprehensive town centre regeneration programmes, specifically for... Gloucestershire
Recuriter: South Gloucestershire Council

Senior Lawyer, Regeneration & Property

Royal Borough of Greenwich
£45834 - £48819 per annum
Are you a Senior Regeneration & Property Lawyer with local government experience and looking for variety and challenge?Royal Greenwich is proud to be England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Job Evaluation & Research Officer

Birmingham City Council
£27,741 - £34,728
2 x Job Evaluation & Research Officers will be supporting the Senior Job Evaluation & Research Officer and Reward & Recognition Manager. Birmingham, West Midlands
Recuriter: Birmingham City Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue