The Government is proposing to introduce a cap of £95,000 on the total value of exit payments for public sector workers and HM Treasury has started a consultation seeking views on the scope, level and design of the cap. The Government does not believe that six figure exit payments are fair or offer value for money to the taxpayer who funds them. To support that view the Government state that between 2011-12 and 2013-14 the cost of exit payments in the public sector was around £6.5 billion.

More than £1 billion of this cost came as a result of exit payments costing more than £100,000. Section 1.1 of the consultation sets out which employees and bodies come with the scope of the cap, Section 1.2 describes which payments will be covered by the cap and Section 1.3 explains how a waiver of the cap would require consent from the relevant Minister.

Content Note

The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.