Jamie Reed – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Jamie Reed on 2016-10-17.

To ask Mr Chancellor of the Exchequer, if he will meet the hon. Member for Copeland to discuss the effect of the exit payment cap on nuclear workers in Copeland constituency.

Mr David Gauke

The government announced in May 2015 that it intends to take forward its manifesto commitment to end six-figure exit payments for public sector workers. The Enterprise Act, which contains provisions for the £95,000 public sector exit payment cap, received Royal Assent on 4 May 2016.

Public sector exit payments cost around £2 billion a year and it is important that they are fair, proportionate and provide value for money to the taxpayer that funds them. The proposed cap, amounting to 3.5 times the average public sector salary, will still offer a significant level of compensation and support to an employee, and will apply to only a small percentage of public sector exits. The exit payment cap will apply to organisations classified as within the public sector by the Office for National Statistics, with a small number of exceptions.

I am aware that the hon. Member for Copeland is discussing the effect of the cap on nuclear workers in his constituency with my noble friend the Minister of State for Business, Energy and Industrial Strategy (BEIS). That is the appropriate route for these discussions as BEIS is the department responsible for the nuclear industry.