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Public Sector Exit Payments (Limitation) Bill

20 October 2023

Proposing MP
Roger Gale Con
Herne Bay and Sandwich
Type
Bill Debate

At a Glance

Issue Summary

The statement addresses the issue of public sector exit payments and their impact on taxpayers' money. The statement discusses the ongoing efforts and challenges related to addressing public sector exit payments and the need for legislative action to protect taxpayers' interests.

Action Requested

The government is committed to limiting large exit payments and making provisions for recovering these payments when appropriate. The Minister also mentions that a consultation was conducted in August 2022 but does not provide details on its outcome, promising to write with the latest information.

Key Facts

  • The government accepts full pay recommendations from independent bodies for various public sector workers.
  • Exit payments are necessary for organisational change and support individuals, but the taxpayer ultimately pays.
  • Large exit payments have been a concern for several years.
  • The Government understands the concerns regarding public sector exit payments.
  • There has been an eight-year delay since the Government committed to addressing this issue.
  • Local government was not in scope of the consultation but separate guidance has been provided.
  • Non-disclosure agreements are being curtailed through legislation.
  • The estimated cost to the Exchequer from public sector exit payments may be as much as £1 billion a year.
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