Consultation on a public sector exit payment cap

The government has launched a consultation on a public sector exit payment cap, proposing to introduce a cap of £95,000 on the total value of exit payments made to an individual in relation to his or her exit from public sector employment. The government is also considering reforms to the calculation of compensation terms, and to employer-funded early retirement in circumstances of redundancy, and plans to consult on these areas in due course. Between 2011/12 and 2013/14 the cost of exit payments in the public sector was around £6.5bn. More than £1bn of this cost came as a result of exit payments costing more than £100,000. Responses are due by 27 August 2015. See www.bit.ly/1E1dnBH.