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Consultation on £95,000 cap on public sector pay-offs | Consultation on £95,000 cap on public sector pay-offs |
(about 5 hours later) | |
Ministers are to consult on plans to cap public sector pay-offs at £95,000. | Ministers are to consult on plans to cap public sector pay-offs at £95,000. |
First floated in January and included in the Conservative manifesto, the cap would apply to central and local government and other public bodies. | First floated in January and included in the Conservative manifesto, the cap would apply to central and local government and other public bodies. |
The BBC, Channel 4, Bank of England, the Armed Forces, Royal Bank of Scotland and other taxpayer-owned banks would be among organisations exempt. | The BBC, Channel 4, Bank of England, the Armed Forces, Royal Bank of Scotland and other taxpayer-owned banks would be among organisations exempt. |
But ministers said they would expect such bodies to introduce "their own, commensurate cap on exit payments". | But ministers said they would expect such bodies to introduce "their own, commensurate cap on exit payments". |
The government says it wants to significantly reduce the cost to the taxpayer of public sector pay-offs, which totalled about £6.5bn between 2011-12 and 2013-14. | The government says it wants to significantly reduce the cost to the taxpayer of public sector pay-offs, which totalled about £6.5bn between 2011-12 and 2013-14. |
"It's not right that highly-paid public sector workers should receive huge taxpayer-funded payouts when they're made redundant," said Chief Secretary to the Treasury Greg Hands. | |
"The cap we are bringing into law will mean no more six-figure pay-offs in the civil service, local authorities and the NHS. We also expect other bodies who rely on taxpayers' money to follow suit." | |
'Loyal staff' | |
Under its plans, which would apply to bodies whose remuneration is determined at a UK level, any eligible organisation which wanted to exceed the cap would have to seek permission from ministers. | Under its plans, which would apply to bodies whose remuneration is determined at a UK level, any eligible organisation which wanted to exceed the cap would have to seek permission from ministers. |
The Treasury-led consultation, which will seek views on the scope, level and design of the proposed cap, will close on 27 August. | The Treasury-led consultation, which will seek views on the scope, level and design of the proposed cap, will close on 27 August. |
Union leaders criticised the exclusion of RBS and the firms which manage the remaining publicly owned assets of Northern Rock and Bradford and Bingley. | |
They claim the cap will potentially affect nurses, teachers, firefighters and police officers on relatively modest incomes. | |
"Ministers are portraying this as being aimed at highly paid public servants who enjoy 'golden goodbyes'," said Mark Serwotka, from the Public and Commercial Services Union. | |
"But the reality is that capping the redundancy payments at the proposed level will impact on long-serving, loyal staff earning just above the average civil service pay who have built up pensions and other entitlements under their terms and conditions." | |
The BBC introduced a £150,000 maximum limit on redundancy payments in 2013 following criticism of severance packages paid to some departing senior executives. |
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