This arbitrary £95k redundancy cap will impact on hard-working and long-serving staff

21 July 2020

The government has responded to a consultation on imposing a cap on redundancy payments in the public sector by bringing forward plans to instigate a cap at £95k.

Money, notes and coins, Getty

The change would affect not only civil servants but also workers in a whole range of publicly owned bodies.

Mike Clancy, General Secretary of Prospect, responded:

“The government has brought this forward in both a very hasty manner and without the necessary clarity on its implementation. This is an issue which could affect many people as they lose their livelihoods and the details need proper scrutiny. A vague ‘we will publish the details later’ is not acceptable and will cause a lot of unnecessary anxiety.

“Contrary to government spin this arbitrary cap will impact on hard working and long serving staff in the public sector on modest salaries, including in a wide range of publicly owned bodies. If the government wants to save money on severance it should stop making staff redundant.

“This decision undermines long-standing agreements negotiated in good faith, and Prospect is seeking an urgent meeting with the Cabinet Office.”