Parliament has voted to cap redundancy pay for civil servants at one year’s salary, or 15 months’ for voluntary redundancies, by 326 votes to 244 at the Bill’s second reading.
The Commons sent the Superannuation Bill to committee stage for scrutiny.
At present, civil servants can get three years’ salary and those recruited before 1987 are entitled to as much as six years’.
An amendment attempting to implement instead the previous Labour administration’s reform proposols was defeated by 320 votes to 240.
Personnel Today reported yesterday that the Public and Commercial Services union has fiercely opposed any changes to the civil service redundancy scheme and was successful in a High Court challenge to the previous Government’s plans earlier this year.
The Government is expected to cut thousands of civil service jobs after next month’s spending review, with departmental budgets reduced by an average of 25%.