union for life

Redundancy compensation

Public sector redundancy compensation 2016

graphic image of people being let goIn the 2015 Spending Review, the former Chancellor announced that the government would "consult on further cross-public sector action on exit payment terms, to reduce the costs of redundancy payouts.”

At a time when other spending announcements implied significant redundancies across the public sector, the government was sticking the knife in by attacking the compensation those employees would receive when they left.

In February 2016, the Treasury launched a consultation on reforming exit payment terms across the public sector. Its response to that exercise was published on 26 September 2016.

Employers across the public sector will now review their exit payment terms in line with that document.

The Cabinet Office is very advanced in its plans to reform redundancy compensation payable under the Civil Service Compensation Scheme (CSCS). It began a consultation exercise on reforming the CSCS back in February 2016.

This was the start of a long and difficult process involving consultation responses, lobbying MPs and ministers and detailed discussions with officials. It ultimately led to formal proposals to reform the CSCS set out in a letter to civil service trade unions on 26 September 2016.

The letter also included two annexes – A, which has the full details of the terms that will apply if the offer is accepted and Annex B which outlines inefficiency compensation.

These proposals were put to affected Prospect members in a ballot and were accepted: 84% voted in favour of the changes, 16% voted against.


Latest news updates

The government has tabled legislation to implement the changes to the Civil Service Compensation Scheme which were agreed by Prospect and a number of other unions including the FDA, GMB, Unison, the Defence Police Federation and Unite.


Ballot circular for Civil Service Compensation Scheme ballot 2016   info
Ballot circular
 10 October 2016  ID: 2016/01917

CSCS protocols   info
Details of redundancy protocols that would apply if terms of final offer on CSCS accepted.
 07 October 2016  ID: 2016/01913

CSCS final offer annex B   info
Annex B to final offer letter on CSCS terms. Dated 26 September 2016.
 07 October 2016  ID: 2016/01912

CSCS final offer annex A   info
Annex A to the final offer letter from Cabinet Office on CSCS terms. Dated 26 September 2016.
 07 October 2016  ID: 2016/01911

CSCS final offer letter 26 September 2016   info
Letter from Cabinet Office to trade unions detailing final offer on CSCS. Dated 26 September 2016.
 07 October 2016  ID: 2016/01910