Government ends six figure redundancy payouts

29 May 2015

Redundancy payments for the best-paid public sector workers will be capped below six figures as part of the Enterprise Bill.

In 2013, nearly 1,838 public sector employees received payouts over £100,000. The government is considering capping payouts at £95,000, but will consult before determining the exact amount .

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 as planned.

Chancellor of the Exchequer George Osborne 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.”