06/07/2010

Civil Service Redundancy Payments To Be Capped

Civil servants who are made redundant are to have their payouts capped at one year's salary, under new plans announced by the government.

The new plans, which were unveiled by Cabinet Office Minister Francis Maude, will also see payouts for staff taking voluntary redundancy capped at 15 months salary.

Mr Maude said that the current payouts - which offer, on average, severance packages worth around three years' salary - were "untenable" and "completely out of kilter" with what was on offer in the wider public sector and private sector.

However, the Minister also stressed that this was the beginning of the process and urged unions to begin negotiations on the matter. He said: "I want to make it absolutely clear that we see today's Bill as the basis for immediate discussions to start."

However, the announcement has been criticised by the unions. Mark Serwotka, General Secretary of the Public and Commercial Services Union, said the Minister's announcement "betrays a breathtaking arrogance and a contempt for his own workforce".

(KMcA/GK)

Related UK National News Stories
Click here for the latest headlines.

14 September 2009
NHS To Ban Premium Rate Calls
The use of phone numbers that charge the public or patients a premium rate to contact the NHS are to be banned in England, Health Minister Mike O’Brien announced today. The announcement follows a recent public consultation on the use of 084 numbers in the NHS.
06 May 2009
£1.6m Pledged For Macmillan's National Cancer Survivorship Initiative
The Department of Health is to provide £1.6 million to Macmillan to improve services and support for those living with and beyond cancer, Health Minister, Ann Keen announced today.
03 September 2007
Brown Dismisses Early Election Speculation
Prime Minister Gordon Brown has played down speculation that he may call a general election for October. Speaking on BBC Radio 4's 'Today' programme, Mr Brown said that he was "getting on with the business of government". He said: "There will be a time and a place for a general election, but it is not now.
11 November 2014
FCA Introduce Caps On Payday Loan Charges
The financial regulator has announced a series of caps on charges used by payday loan firms. The caps, introduced by the Financial Conduct Authority (FCA), include: • 0.8% per day interest – lenders cannot charge more than 0.8% interest on a loan.
09 January 2014
Benefits Capped For Almost 33,000 Households
Almost 33,000 households had their benefits capped by November 2013, new figures reveal. Capping benefits so that households can no longer get more in benefits than the average family earns is a key part of the government’s long-term economic plan to make sure we deliver for hardworking people and fix the broken welfare system.