Workforce, Pensions and Training

10.04.19

Treasury looking to ban six-figure public sector worker pay-offs with £95k cap

A consultation has been launched by the government into the banning of six-figure pay-offs for public sector workers, dubbed ‘golden goodbyes’.

The Treasury is now considering capping pay-offs for public sector and local government workers at £95,000.

Earlier this week, the Tax Payer’s Alliance compiled a ‘town hall rich list’ on the number of council workers earning more than £100,000 a year.

Liz Truss, chief secretary to the Treasury, commented: “It is clearly wrong when people leave public sector roles with massive payoffs. It incenses the public when they see their hard-earned money used badly like this.

“That’s why we are capping exit payments to stop unacceptably large pay-outs for senior managers.”

However, FDA union general secretary Dave Penman accused Truss of being disingenuous.

He added: “As she knows all too well, when the conservatives first mooted this arbitrary cap in 2015, it included protection for those earning less than £27,000 a year. Not only has this protection been abandoned, but it demonstrates that their blunt approach to capping redundancy payments will hurt teachers, police officers, fire fighters, doctors, paramedics and other individuals serving the public.

“It is disappointing that a government minister - who day in, day out witnesses the incredible job that public servants do for her government - would use the dog-whistle tactics of demonising senior managers to hide the true impact of her policy.”

Top image: Stefan Rousseau via PA

 

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