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Detail of outcome
The government has published a response to the consultation about reforms to public sector exit payments. These reforms would make public sector exit terms fairer, more modern and more consistent.
Around 350 responses were received to the consultation. These included responses from unions; public sector employers and employer organisations; and public sector workers and others responding in an individual capacity. A wide range of views were expressed in these responses. The majority of responses expressed opposition to the government’s proposals. A smaller number of responses supported the principles of the government’s proposed reforms and some or all of the specific proposals.
Exit payments will continue to be fair to employees and provide an appropriate level of support as a bridge into finding new work, or into retirement. Nevertheless, it is right to take forward the proposed reforms to cut the cost of redundancies, and to ensure greater consistency between schemes. The approach of individual workforce negotiations within an overarching framework strikes the right balance in ensuring fairness to the individual and the taxpayer, and ensuring that there is greater consistency between schemes while recognising the differences between workforces.
Further details on the policy and the government’s process for reform are in the response to the consultation.
The Spending Review 2015 announced the government’s intention to consult on cross-public sector action on exit payment terms, to reduce the costs of redundancy pay-outs and ensure greater consistency between workforces.
The government is consulting on options to reform public sector exit payment terms to ensure greater consistency, fairness and sustainability in the provision of public sector compensation.
Once the consultation closes on the 3 May 2016 the government will consider all replies and publish a government response document that will set out how the government intends to proceed.
The government would particularly, but not exclusively, be interested to hear from:
- public sector employers
- government departments
- consumer groups
- providers of redundancy schemes