Update on public sector exit payments

Meeting for finance

Updated 15 October

The implementation of a £95,000 cap on exit payments in the public sector received final approval from parliament earlier this month.

The Restriction of Public Sector Exit Payments Regulations 2020 No. 1122 were made last night (14 October) and can now be viewed on legislation.gov.uk. There is a 21 day period before the Statutory Instruments come into force on the 4 November 2020.

New detailed guidance from HM Treasury will follow shortly. 

We will be working to develop supporting material once the regulations and accompanying government guidance have been released. We will also discuss with NHS trade unions, via the NHS Staff Council, how best to reflect these changes in the NHS terms and conditions of service. 

For information on the government’s response to their 2019 consultation, please refer to our last update.

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