The Government's response to the consultation on the recovery of public sector exit payments


30 / 10 / 2014 4.16pm

The Government has published its response to the consultation on the recovery of public sector exit payments.

NHS Employers organisation made a
submission to the consultation on behalf of the NHS in September 2014. 

The key points of the amended proposals are:

  • Only payments directly related to loss of employment will be subject to recovery;
  • The legislation will apply to all current and future employees and office holders;
  • Recovery will only apply to those earning over £100K per annum who are re-hired within sub-sectors within 12 months (the proposed £80K threshold has been removed;
  • Repayment will be on a pro-rata basis (less any tax and statutory entitlement) for the first 12 months and partial repayment will apply when returning to a lower paid job;
  • Sub-sectors will be defined around central government departments and their Whole Government Account reporting boundaries - further work will be undertaken to list which organisations fall within which boundaries;
  • Recovery of payments will apply to those individuals that return to jobs off-payroll within the same sector (likely exemptions for those employed in large consultancy firms);
  • The date of implementation will be April 2016.

The Government is likely to release guidance on the operation of the policy, setting out in more detail the roles and responsibilities of employers and employees for supporting the recovery of exit payments.

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