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Public Sector Exit Payments (Limitation) Bill

13 March 2020

Proposing MP
Christopher Chope Con
Christchurch
Type
Bill Debate

At a Glance

Issue Summary

Christopher Chope is moving a Bill that would require the Treasury to implement regulations limiting exit payments for highly paid public sector workers as promised by the Government in 2015. Christopher Chope discusses the Public Sector Exit Payments (Limitation) Bill and calls for limits on exit payments. The statement discusses the issue of large exit payments made to public sector employees and the need for increased transparency and accountability in such expenditures. Steve Barclay addresses concerns raised by Christopher Chope's Public Sector Exit Payments (Limitation) Bill regarding excessive exit payments for public sector workers.

Action Requested

The MP requests immediate implementation of existing legislation to limit taxpayer-funded exit payments, arguing it could save £200 million annually and has been delayed due to civil service resistance.

Key Facts

  • The Bill aims to enforce regulations under section 153A of the Small Business, Enterprise and Employment Act 2015.
  • Estimated £1 billion in taxpayer losses due to delays in implementing exit payment limits.
  • A £200 million annual benefit for the Exchequer if implemented.
  • Former Home Secretary promised reforms in January 2015.
  • Current Chief Secretary has background knowledge from Public Accounts Committee discussions in early 2010s.
  • The Government promised to introduce regulations but has not delivered on time.
  • A local council official received over £300,000 in exit payments.
  • Chope's Bill aims to limit public sector exit payments to £95,000.
  • In 2016-17, 500,917 exit packages exceeding £50,000 were paid.
  • 1,600 of these payments exceeded £100,000.
  • The total cost of such exit payments was £1.2 billion.
  • The Bill addresses excess payments for public sector workers leaving their roles.
  • 600 responses were received during the consultation phase.
  • Legislation will be brought forward before the summer recess, if parliamentary time allows.
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