Kevin Brennan – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Kevin Brennan on 2016-01-28.

To ask Mr Chancellor of the Exchequer, if he will make it his policy to exempt employers from the proposed public sector exit payment cap if an employer can demonstrate that they are in the middle of an ongoing restructuring exercise.

Greg Hands

The Government made a manifesto commitment to end six-figure payouts in the public sector and wants to do so as soon as possible. These payments cost around £2 billion a year and it is important that they are fair, proportionate and provide value for money to the taxpayer that funds them. As such, the Government does not see any case for transitional arrangements to delay ending six-figure exit payments. However, the power for Ministers to relax the restrictions imposed by the cap provides the flexibility to do so in appropriate circumstances.

Automatic indexing would fail to offer the flexibility that the clause currently provides for. As it stands, the Government can amend the level of the cap to take into account all prevailing circumstances, and with the additional scrutiny of the affirmative resolution procedure in Parliament.