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


Government accountability: A year in crises

15/01/2019Government accountability: A year in crises

From Windrush to Univerisal Credit: the Institute for Government’s (I... more >
Rethinking public-private partnerships

15/01/2019Rethinking public-private partnerships

Trinley Walker, senior policy researcher at the New Local Government Networ... 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

Bus franchising is the biggest power new mayors have - they should use it

15/01/2019Bus franchising is the biggest power new mayors have - they should use it

It will face opposition at first, but transitioning to a system of bus franchising is the best and only option to truly modernise transport systems across our city regions, ar... 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 >