You will be aware that the government has recently been consulting on reforms to Public Sector exit payments. The following is an update on the latest position.

There are 3 strands to the Government’s Exit Payment strategy:

  • The £95k Exit Payment cap
  • The Recovery upon return to the public sector within 12 months for those earning £80k or more
  • The review of the basis of the various public sector exit package provisions.

Plans regarding the £95k cap and recovery of exit payments have been delayed and are now not likely to be in place until late 2016/early 2017. We will provide further updates, once we know more.

The Government response to the consultation on the various public sector exit packages has now been published (26 September 2016) and can be read on the gov.uk website:

https://www.gov.uk/reforms_to_public_sector_exit_payments_consultation_response.pdf

The response requires that, within 3 months of publication, Government departments (e.g. Department of Communities and Local Government, Department for Education etc) propose changes to exit packages that fit within a general Government framework, and then consult on and implement the changes within a further 6 months.

Changes are, therefore, likely to be in place early Summer 2017