Commons Sense

House of Commons · Ministerial Statement

Ministers’ Severance Pay

11 July 2022 · 12 other contributors

Opened by Heather Wheeler Con Constituency

Standards & Ethics

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Heather Wheeler raised concerns about ministers’ severance pay in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The severance pay provision for ministers is established under the Ministerial and other Pensions and Salaries Act 1991.
  • A minister of eligible age who ceases to hold office without being reappointed within three weeks is entitled to a severance payment equal to one-quarter of their annual salary.
  • The context includes abrupt ministerial changes, lack of notice periods, and consultations or redundancy arrangements.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

Heather Wheeler

The severance pay provision for ministers is established under the Ministerial and other Pensions and Salaries Act 1991. This legislation provides that a minister of eligible age who ceases to hold office without being reappointed within three weeks is entitled to a severance payment equal to one-quarter of their annual salary. The context includes the reality of abrupt ministerial changes, lack of notice periods, consultations or redundancy arrangements. Previous administrations of various political leanings have implemented this statutory entitlement and published payments in Government Department reports; for instance, Labour Ministers received £1 million in 2010. Ministers can waive these severance payments on a discretionary basis.

Other contributors (12)
  • Fleur Anderson Lab Putney

    Question

    Anderson questioned the Government's handling of ministerial resignations, highlighting potential severe costs to taxpayers. She raised concerns about five former Secretaries of State receiving over £16,000 each and one who was in post for 36 hours and due to receive close to a teaching assistant's starting annual salary.

    Minister reply

    Heather Wheeler confirmed no Ministers who resigned are entitled to severance payments at this point but noted the three-week window.

  • Michelle Donelan

    Question

    Donelan referenced her own situation, stating she would not accept a severance payment.

    Minister reply

    Heather Wheeler confirmed that Donelan had already informed the Cabinet Office of her decision to forgo the payment.

  • Brendan O'Hara SNP Argyll, Bute and South Lochaber

    Question

    O'Hara questioned the system's integrity and requested Ministers who accept severance payments be asked to refuse or donate them.

    Minister reply

    Heather Wheeler disagreed with O'Hara’s views, stating that within the three-week period Ministers can decide individually whether to accept the payment.

  • Selaine Saxby

    Question

    Saxby addressed an alleged misstatement by Liberal Democrats regarding her pay and severance.

    Minister reply

    Heather Wheeler strongly criticised the Liberal Democrats for this false statement, urging Wendy Chamberlain to issue a correction.

  • Barry Gardiner Lab Brent West

    Question

    Gardiner questioned the morality of making severance payments after voluntary resignations and highlighted the stark contrast with low wages in care work.

    Minister reply

    Heather Wheeler referenced previous Labour administrations' decisions not to alter the 1991 legislation.

  • Wendy Chamberlain Lib Dem North East Fife

    Question

    Chamberlain asked if it was time to reconsider the minimum service term required before a Minister can receive or waive severance payments.

    Minister reply

    Heather Wheeler noted that during the coalition, a Liberal Democrat did not think such changes were necessary.

  • Steve McCabe

    Question

    McCabe questioned whether any resigning Ministers who are Tory leadership candidates would set the right example by accepting severance payments.

    Minister reply

    Heather Wheeler declined to comment on potential future Conservative leaders, asserting they will succeed in elections.

  • Matt Western Lab Warwick and Leamington

    Question

    I understand that approximately £400,000 will be paid out in severance payments. Will the Minister agree to publish a full list of the amounts being paid out to those individuals? Will she confirm that these moneys will be coming from Departments such as the Department for Education and will therefore have an impact on the budgets of much-pressed Departments and, for example, on schools or other institutions?

    Minister reply

    The hon. Gentleman asks a perfectly reasonable question. It is laid out in statute how the amounts and payments are made, and it is in the annual accounts of the Departments.

  • David Linden

    Question

    A supermarket worker from Shettleston would not get thousands of pounds in a severance payment. Why should Rishi Sunak, the richest man in Parliament, get a severance payment?

    Minister reply

    Thank you, Mr Deputy Speaker. Absolutely, we do not use names, do we? I thank the hon. Gentleman for the question. It is very simple: this is a matter of statute law, it has been around since 1991, and all the different political parties have taken use of it. That is where we are.

  • Alan Brown

    Question

    When the new Education Minister gave a one-fingered salute to the crowd outside Downing Street, that was symptomatic of this Government, who have been putting two fingers up to the entire UK for the tenure of the former Prime Minister. Given that we have a zombie Government, with Ministers who are clearly in place on a temporary basis, does this Minister agree that they should not take severance payments when they rightfully get sacked when a new Tory leader comes in?

    Minister reply

    The hon. Gentleman is slightly off point regarding the Education Minister; I would like him to remember that the lady in question has had seven death threats against her, and the way the baying mob were reacting at the time was astonishing. As regards anything else, people will use the three-week window to decide whether they take the severance payment or not, and the law is the law.

  • Marie Rimmer Lab St Helens South and Whiston

    Question

    It is a sensitive time. People are going hungry, they are going to be cold, although they are not at the moment, and they have to deal with energy prices. Yes, we hear, “This is statute and that is it. It is up to the individual.” We were told this once before, and the individual can do something, but surely at this time, with all that is going on, when we are in a poor state as regards respect from our public, we should call on the relevant people to reflect the sensitive situation and to say en masse, “We do not want this. We will not accept it.” That would go a long way with the public.

    Minister reply

    I thank the hon. Lady, whom I know to be an unbelievably caring lady. It is important that comments and sentiments like that are expressed in this Chamber, as they make the House of Commons the sort of place that everybody in a living democracy wants to have. I will reflect on her views. I repeat, loudly, that there is a three-week window and individuals can reflect on the situation themselves, but I do thank her for the question.

Shadow Comment

Fleur Anderson

Anderson criticised the current government's handling of ministerial resignations and the cost to taxpayers, citing an estimated £250,000 in severance pay for Ministers who are not reinstated. She questioned if five former Secretaries of State would receive over £16,000 each. Anderson stated that most departures were voluntary rather than forced, blaming a discredited Prime Minister and Conservative party's reluctance to address the issue. The Shadow Secretary of State demanded details on the exact cost of severance payments to taxpayers and asked if these payments represent value for money.

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