[pullquote]The Treasury proposals will hit some of the lowest-paid and longest-serving public servants hardest – Garry Graham, Prospect[/pullquote]In its response to the consultation on reforms to public-sector exit payments, the Government has said that departments will be tasked with negotiating changes to their compensation schemes with trade unions and other employee representatives within the framework outlined in the consultation. Chief secretary to the Treasury David Gauke said: “These reforms ensure public-sector exit payments are consistent and fair, and that they are also fair to taxpayers too. “By applying these reforms across public-sector workforces for the first time, appropriate standards will be in place for workers and public services will remain protected.” The framework to further limit public-sector exit pay includes:
Additional public-sector resourcesRedundancy rights: local authority Basic pay and benefits: local authority
- a maximum tariff of three weeks' pay per year of service to be used to calculate exit payments;
- a maximum of 15 months' salary to be used to calculate redundancy payments;
- a maximum salary of £80,000 to be used to calculate exit payments;
- application of a taper on lump-sum compensation as employees get closer to their normal pension retirement age; and
- workforce-specific action to limit or end employer-funded early access to pension as an exit term.