Public Sector: Redundancy Pay

HM Treasury written question – answered on 23rd May 2016.

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Photo of Kevin Brennan Kevin Brennan Shadow Minister (Business, Innovation and Skills)

To ask Mr Chancellor of the Exchequer, what his most recent estimate is of when the public sector exit payments cap will be introduced in (a) England and (b) Wales; and if he will make a statement.

Photo of Kevin Brennan Kevin Brennan Shadow Minister (Business, Innovation and Skills)

To ask Mr Chancellor of the Exchequer, what steps he has taken to inform public sector workers of the implications of the public sector exit payment cap.

Photo of Greg Hands Greg Hands The Chief Secretary to the Treasury

The Government announced on 31st July 2015 that it intended to end six-figure exit payments for public sector workers, acting on its manifesto commitment. A public consultation over the summer of 2015 asked for views on the details of the policy, which received over 4,000 replies.

The public sector exit payment cap has now been legislated for in the Enterprise Act. The Government intends to publish draft regulations over the summer setting out the detail of how the policy will be introduced, alongside accompanying guidance. All affected parties, including public sector workers, will have a further opportunity to comment on the regulations and supporting guidance during that time.

The regulations implementing the public sector exit cap will not come into force before 1 October 2016 at the earliest. They will apply to bodies in England and those in Wales where the workforce is not devolved in this context. It will be for Welsh Ministers to determine when they bring into force the regulations in the Enterprise Act for bodies devolved to Wales.

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