UNITED KINGDOM
A £95,000 (A$177,500) cap on redundancy payments to UK Public Servants will be implemented — more than three years after it was first proposed.
The plan was first set out in 2015 after the newly elected Conservative Government promised to limit redundancy payments in the public sector.
The Government then passed the primary legislation required to make the change in the 2016 Enterprise Act, but the secondary legislation required to enforce the limits was never passed.
Chief Secretary to the Treasury, Liz Truss (pictured) has now written to Ministers seeking permission to implement the plan.
In her letter, Ms Truss wrote that the way PS employees were rewarded must be proportionate and fair to taxpayers.
“The very high exit payments we have seen granted to some highly paid public sector employees in recent years clearly breach these principles,” Ms Truss wrote.
She said it was right that the Government was taking action on this to give taxpayers the confidence their money was being spent properly.
“I want to ensure that the vast majority of exit payments in the public sector are capped as soon as possible,” Ms Truss wrote.
Cabinet backing for the plans is expected to lead to a consultation on the changes before regulations are laid before Parliament.
London, 11 March 2019
