Public sector exit payments – clamping down and clawing back

5th October 2017

The Government have confirmed that they intend to undertake a fresh consultation on draft regulations governing the exit payment cap and exit payment recovery this autumn. This would potentially mean an implementation for both reforms in the first half of 2018, subject to sufficient parliamentary time being found.

Cap on exit payments

The consultation on the £95,000 cap will focus on revised draft regulations plus guidance on when a waiver of the cap may be permitted.

Recovery of exit payments

The consultation on the recovery proposals (for high earners who return to the public sector within 12 months of leaving) will focus on which bodies are covered.

National LGA also been told that ministers are still minded to implement the further reforms to public sector exit payments but the exact details and timings are not yet known.

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