The Government has published its response to the consultation on regulations implementing a £95,000 cap on public sector exit payments. Key aspects of the response are: (a) the £95,000 level of the cap will not be changed at this stage, but it will be kept under review; (b) It is no longer intended to proceed with a staged approach and the cap will now apply across all of the public sector when implemented; (c) all the proposed payments related to exit within scope of the cap will remain; (d) permitted exemptions now include payments made in respect of injury to feelings; (e) policy direction will be provided on the waiver process, i.e. where the cap can be relaxed in exceptional circumstances where it is necessary or desirable; and, (f) HM Treasury will publish updated guidance for applying the exit payment cap alongside the coming into force of the Regulations, which will provide users with further information on applying the cap and the waiver provisions. The draft 2020 Regulations have now been published and HM Treasury will confirm the implementation date.
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