Commenting on the consultation ‘Public Sector Exit Payments: a new controls process for high exit payments’, Ian Colvin, Head of LGPS Benefit Consulting, Hymans Robertson says:

“Today’s newly announced consultation takes a slightly different approach from previous government intentions to cap exit payment at £95,000. Rather than apply an absolute cap to exit payments, the proposal seeks to beef up the approval process and to give the relevant department secretary of state the final say on whether a £95,000 plus payment can be made. The expectation is that approval will only be granted in exceptional circumstances.

“The consultation also takes the opportunity to strengthen the approval process for special severance payments i.e. payments to public sector workers on leaving, over and above their statutory or contractual entitlements. Approval, however, will only be forthcoming where very stringent criteria are met.

“The consultation outlined today will only apply to central government bodies so local authorities will be keen to see what DLUHC intend to do in this space and any implications this may have for the LGPS.”