Martin Ford 12 February 2021

Treasury scraps cap on public sector exit payments

Treasury scraps cap on public sector exit payments image

The Government has dropped its controversial cap on public sector exit payments after admitting it had ‘unintended consequences’.

A limit of £95,000 on payments to council staff leaving their jobs came into force in November in the face of fierce opposition from unions.

The High Court was due to hear a joint legal challenge by Lawyers in Local Government (LLG) and the Association of Local Authority Chief Executives (ALACE) and a second case brought by Unison next month.

But today the Treasury issued new guidance revoking the pay cap following an ‘extensive review’ that ‘concluded that the cap may have had unintended consequences’.

Partner at Greenburgh and Company, Mark Greenburgh, who was due to represent ALACE and LLG, said: ‘We are pleased that the Government has seen sense.’

While he said it was, as yet, unclear what this would mean for the litigation, Mr Greenburgh added: ‘We await the proposals to include costs for our clients.’

LLG and ALACE had argued the cap clashed with local government pension scheme (LGPS) regulations and changed the terms of employment of existing council workers.

Today’s guidance said former employees affected by the cap between November 4 and February 12 should ‘request from your former employer the amount you would have received had the cap not been in place’ and ‘the Treasury’s expectation is that they will do so’.

The Treasury said it would still ‘bring forward proposals at pace’ to tackle ‘unjustified’ exit payments, adding: ‘Employers should always consider whether exit payments are fair and proportionate.'

 

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Social Worker

Wakefield Council
£40,221.00 - £43,421.00, Grade 10, 37 hours, Permanent
Community Mental Health Senior Social worker (level two) post at Baghill House Pontefract. Baghill House, Health & Wellbeing Centre, Walkergate, Pontefract, WF9 1QW
Recuriter: Wakefield Council

Senior Social Worker

Wakefield Council
£40,221.00 - £43,421.00, Grade 10, 37 hours, Permanent
An exciting opportunity has arisen for a full time (37 hour) senior social work position within Connecting Care East. Castleford Civic Centre, Ferrybridge Road, Castleford, WF10 4JH
Recuriter: Wakefield Council

Senior Care Assistant (Days)

Wakefield Council
£21,422.43 - £23,731.62, Grade 6, 30 hours, Permanent
Dovecote lodge is a short term placement unit which support the hospital with admissions, predominantly from the emergency department. Dovecote Lodge Dovecote Lane Horbury Wakefield West Yorkshire WF4 6DJ
Recuriter: Wakefield Council

Complex Needs Support Worker

Wakefield Council
£19,697.84 - £21,064.05, Grade 5, 30 hours, Temporary
Dovecote Lodge currently has a vacancy for a 30 hour complex support worker, the rota includes days, afternoons and nights over a 10 week period. Dovecote Lodge Dovecote Lane Horbury Wakefield West Yorkshire WF4 6DJ
Recuriter: Wakefield Council

Multi Skilled Operatrive x4

Wakefield Council
£22,737.00 - £29,269.00, Career grade 3-6, 37 hours, Permanent
We are seeking enthusiastic and capable colleagues to join our Highway Operations team that forms part of the Highway Network Management. Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.