Published — 23 September, 2020

Public sector exit payments

Thank you for contacting me regarding public sector exit payments.

I understand your concerns regarding exit payments in the public sector.  The point has been made that exit payments can often be important to an employer’s ability to adapt to new circumstances and provide vital financial support to individuals as they search for a new job.  Public servants should be given some financial security, but this should only be in a manner that is fair and justifiable.

That said, six-figure exit payments are far in excess of those available to most workers in the public sector or wider economy, and I do not believe such payments are proportionate or fair to taxpayers.  That is why I welcome plans to cap exit payments in the public sector at £95,000.  Even then, I do not expect payments at this level to be the norm.

Exit payments beneath the £95,000 cap will continue to be available, so that public sector employees can support their families, find new employment.  I understand that this policy has been carefully designed to protect long-serving, lower-earning staff.

Thank you again for taking the time to contact me.