Title

WHITEHALL

Government committed to £95k exit cap

The Government remains committed to its plans to cap all public sector exit payments at £95,000 despite widespread opposition.

The Government remains committed to its plans to cap all public sector exit payments at £95,000 despite widespread opposition.

Whitehall announced last February its intention to crack down on public sector payoffs in a move that will hit local government workers and others in the public sector.

The Government today published the response to the consultation on its proposed reforms which revealed the majority of respondents expressed opposition to the proposals.

However, it insisted it wanted to ‘ensure greater consistency between public sector redundancy compensation schemes and value for money for the taxpayer'.

As well as introducing a £95,000 cap on exit payments, the Government plans to introduce measures to claw back redundancy compensation when an individual returns to the public sector shortly after receiving an exit payment.

‘The new framework ensures a fair and appropriate level of compensation is provided for employees who are required to leave public sector jobs, whether on a mutually agreed or voluntary basis or through compulsory redundancy,' a government spokesman said.

But general secretary of trade union Unison, Dave Prentis, said: 'The Government might claim its cap on redundancy payouts will only affect those at the top of the public sector, but the reality is that many middle income earners – like nurses and librarians – will be hit hard.

'Soon, staff who've given their working lives over to public service and who are unfortunate enough to see their jobs go will find themselves severely short-changed.

'If the Government wants to save money on exit payments it should stop cutting jobs and outsourcing services to private firms, and invest in public services and the staff who provide them instead.'

 

WHITEHALL

Children's services: What good looks like in Solihull

By Paul Johnson | 20 January 2026

Solihull MBC’s journey from Inadequate to Good in its latest Inspection of Local Authority Children’s Services is one of the best examples of the public sect...

WHITEHALL

AI: powering the next chapter of UK local government

By Emma Foy | 19 January 2026

One year on from the national AI Action Plan, Emma Foy says those who move early – and move responsibly – will shape the future of local government service d...

WHITEHALL

Challenging the LGR wisdom

By Heather Jameson | 15 January 2026

As local government faces the next round of reorganisation, Dorset Council chief Catherine Howe challenges the assumption that only county-scale leaders can ...

WHITEHALL

Shaping standards for public sector AI

By Professor Jennifer Schooling | 15 January 2026

Local government is under increasing pressure to adopt AI-based tools to improve delivery, but systems are largely untested and lacking guidance. Professor J...

Popular articles by William Eichler