Latest Public Sector News


Plans to cap public sector redundancy payments included in Queen’s Speech

Redundancy payments for public sector workers are to be capped below six figures under new legislation to be included in the Queen’s Speech.

The proposal to ban ‘golden parachutes’ for those in the public sector was in the Conservative manifesto and will be form part of the Enterprise Bill, which is also going to feature a roll-back of company regulation, under business secretary Sajid Javid MP.

The exact amount of the cap is still to be determined but the treasury expects it to be around £95,000. It will apply to those in the Civil Service and NHS but not the BBC.

This is likely to be considered controversial as while some of the highest packages in recent years include ones worth more than £450,000 in the Civil Service and £500,000 in the NHS, the BBC has seen payouts of more than £1m.

Only those earning less than £27,000 will be exempt from the cap.

The chancellor, George Osborne MP, said: “It is not right that working people should have to fork out for golden parachutes worth hundreds of thousands of pounds for public sector workers when they are made redundant.

“That’s why we are delivering on our pledge to end six figure pay offs for the best paid public sector workers, ensuring fairness and value for money for the taxpayer.”

The government also announced that reforms made last parliament to clawback exit payments made to public sector workers who return to the same part of the public sector in a short time will also be implemented.

Tell us what you think – have your say below, or email us directly at


Pro Publico   01/06/2015 at 13:47

What about quasi public sector organisations such as housing associations where the CEO's earn more than the Prime minister and pay-offs are circa £300k plus?

Add your comment


public sector executive tv

more videos >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the open more > more last word articles >

public sector focus

View all News


Camberley inspired: investment and regeneration

11/03/2019Camberley inspired: investment and regeneration

The decline of the Great British high street has been one of the greatest c... more >
Swindon's solar-powered recycling centre saves council cash

11/03/2019Swindon's solar-powered recycling centre saves council cash

Steve Cains, head of power solutions at Public Power Solutions, the wholly-... more >


Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welco... more >

the raven's daily blog

Councils Can: LGA launches Spending Review campaign

18/03/2019Councils Can: LGA launches Spending Review campaign

Lord Porter, chairman of the Local Government Association, outlines his organisation’s campaign to make sure local government tops to government’s list for this ye... more >
read more blog posts from 'the raven' >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >