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Owing to a failure of internal process by HS2 Ltd an instruction from the Department for Transport not to enhance redundancy payments was not communicated down the organisation and as a result HS2 Ltd operated compulsory and voluntary redundancy schemes on enhanced terms without receiving authority from the Department for Transport or Her Majesty’s Treasury.
HS2 Ltd have a legal obligation to honour the redundancy payments made to individuals who were employed and will not be seeking their recovery.
HS2 Ltd will manage these payments within their existing budgets and as such the Department for Transport will not be providing any additional funds to cover these costs.
HS2 Ltd are putting in place controls to ensure that this does not happen again and are working to implement the recommendations of the NAO in full.