HM Treasury have confirmed that redundancy payments for public sector workers will be capped below six figures as part of the Enterprise Bill announced in the Queen’s Speech. The Government believe this will ensure fairness and value for money for the taxpayer, and could save millions of pounds – in 2013, nearly 2,000 (1,838) public sector employees received payouts over £100,000. The Government is minded to cap payouts at £95,000, but will consult on details such as the exact amount and public sector employers that are covered as part of the legislative process. HM Treasury have also confirmed that the provisions of Sections 154 to 157 of the Small Business, Enterprise and Employment Act 2015, which give the power to clawback exit payments made to public sector workers who return to the same part of the public sector in a short time, will also be implemented as planned.
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