Kevin Brennan – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Kevin Brennan on 2016-01-28.

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of the proposed public sector exit payments cap on public sector employers’ flexibility to restructure their workforce.

Greg Hands

The Government maintains that £95,000 is a significant amount of money for anyone to be receiving for an exit, while the large majority of exit payments are already significantly below the level of the cap. Voluntary redundancy and workforce restructuring is not contingent upon access to six-figure exit payments. As such, we do not expect the cap to have a widespread impact on the take-up of voluntary redundancy, and believe the cap will enable public sector employers to retain the tools to effectively make organisational changes to their workforce whilst offering those made redundant generous provisions for loss of employment.

The consultation on the public sector exit payment cap ran from 31 July to 27 August 2015, and received over 4000 responses. These responses included representations from public sector organisations. The Government will publish draft regulations and invite comment on them in due course.