The Treasury began a consultation on reforming public sector exit payments in February 2016.
This covered the terms that applied across all public sector workforces including the civil service but also the NHS, local government, teachers and others.
The Treasury published its response to the consultation in September. This set out a framework for ensuring greater consistency in exit payments across the public sector as well as achieving other aims set out in the consultation document.
The main elements of the proposals it consulted on were unchanged from those it originally set out in February.
The main proposals are:
- a maximum tariff for calculating exit payments of three weeks’ pay per year of service
- a ceiling of 15 months on the maximum number of months’ salary that can be paid
- a maximum salary on which an exit payment can be based of £80,000
- to limit or end employer-funded access to early pension.
The Treasury expects departments to put forward proposals consistent with the outcome of its consultation within three months and for new terms to be in place within nine months after consultation and negotiation with those affected.
It did recognise that different public sector workforces had different terms and that some flexibility would be needed in how the framework applied in different areas.
Proposals to reform redundancy compensation in the civil service have already been consulted on and Prospect members covered by this scheme are being balloted on these.
We will update members whose redundancy compensation is determined by other public sector schemes as and when proposals are published.