28 / 10 / 2013 11.46am
As part of the process they have been asked to assess and review, whether the number of staff in their organisations that command salaries over £100,000 is appropriate and publically justifiable.
The results of the review may lead to a limit being set on the overall number of posts in ALBs paid over £100,000.
The letter also outlined proposals for new rules on redundancy payments in ALBs:
- regardless of actual salary, the very maximum pay level used to calculate redundancy payments should be capped at £80,000
- the circumstances in which redundancy is offered are significantly tightened
- redundancy terms are tapered as a manager moves towards the end of their career
- a proportionate part of payments are clawed back where people return to the NHS within one year of being made redundant
- employer top up for pensions on redundancy will be limited to a maximum of the redundancy payment.
The Secretary of State has also asked Monitor and the Trust Development Authority, to write to governors of FTs and trusts asking them to follow the lead of ALBs in applying such restraint on redundancy payments for their most senior managers.
We will continue to keep you informed as further details emerge and these plans progress.