Civil Service: Redundancy

House of Lords written question – answered on 2nd July 2012.

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Photo of Lord Laird Lord Laird UUP

To ask Her Majesty's Government, further to the Written Answer by Lord Wallace of Saltaire on 14 June (WA 265), how many staff working for the Department for Work and Pensions were made redundant or departed early last year; what were the costs under the Civil Service Compensation Scheme in (1) redundancy payments, (2) annual pension amounts payable immediately, (3) any lump sum retiring allowances; and what was the average redundancy payment.

Photo of Lord Freud Lord Freud The Parliamentary Under-Secretary of State for Work and Pensions

1,435 employees departed the Department for Work and Pensions early via exit schemes with a last day of service between 1 April 2011 and 31 March 2012. The total cost to DWP under the Civil Service Compensation Scheme was £71.2 million, with an average exit cost of £49.6k.

The cost is made up of lump sum compensation payments paid to exiting staff, and the cost to DWP of buying out any actuarial reduction in pension, should an employee choose this option.

The costs of annual pension amounts and lump sum pension payments are not borne by the department, but are drawn from the Principal Civil Service Pension scheme. As such the department does not have this information available

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