Cap to stop large public sector exit payments

A consultation has been launched outlining how the government will introduce a £95,000 cap to stop huge exit payments when public sector workers leave their jobs.

More than 1,600 highly-paid workers received payments of more than £100,000 in 2016-17 when they left public sector roles, costing a total of £198 million. Research shows that English local government six-figure payments alone accounted for £98 million.

With a consultation launched, the UK Civil Service, local government, police forces, schools and the NHS are included in a first round of implementation which will cover the vast majority of public sector workers.

Liz Truss, Chief Secretary to the Treasury, 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.”

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