Enterprise Bill to cap redundancy payouts for public sector workers at £95k

An Enterprise Bill to be included in the Queen’s Speech tomorrow will contain a proposed £95,000 cap on redundancy payouts to public sector workers, the Chancellor of the Exchequer has announced.

The Treasury said the Government was “minded” to set the cap at that level but would “consult on details such as the exact amount and public sector employers that are covered as part of the legislative process”.

It claimed that the measure would “ensure fairness and value for money for the taxpayer, and could save millions of pounds”.

According to the Treasury, 1,838 public sector employees received payouts worth more than £100,000 in 2013.

The Government also said that reforms made in the last Parliament to allow for the clawback of exit payments made to public sector workers who returned to the same part of the public sector in a short time would also be “implemented as planned”.

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.”