Further Consultation Planned on Exit Pay for Local Government Staff
Public sector exit pay arrangements continue to feature on the Government's agenda. The Department for Levelling Up, Housing and Communities (DLHUC) has confirmed further consultation is planned in relation to local government staff.
It is well known that the Government wishes to reduce the use of large exit payments in the public sector. However, this has so far proved far from straightforward, with previous legislation limiting public sector exit payments to £95,000 being swiftly withdrawn shortly after it was introduced in November 2020.
Since then, consultation took place in 2020 on exit pay reforms in local government. The DLUHC has now provided a short response to that consultation, confirming that further consultation will take place and will take into consideration the representations made in response to the 2020 consultation. The Government is yet to confirm timescales for the new consultation or give any details of its scope.
Separate consultation is also currently open in respect of administrative controls in relation to public sector exit payments over £95,000.
We will continue to report on developments in this area.
