HM Treasury consultation: Recovering Exit Payments in the Public Sector

In late December HM Treasury published a consultation  on implementing further changes to the recovery of exit payments when public sector workers subsequently take up new roles in the public sector.

This builds on the changes announced last year as part of the Small Business Bill. The new provisions extend the scope of the policy as follows:

  • Provision will apply to anyone earning £80,000 or more (originally the threshold was £100,000)
  • Originally an exit payment would have to be repaid if an individual returned to the same part of the public sector (for example civil service). Now it is proposed that an exit payment will have to be repaid if the individual is employed in any part of the public sector within 12 months of the exit (the payment is tapered over that 12 months).

The full consultation can be found here and HM Treasury's press release that followed publication can be read here.

The FDA has now responded to the consultation and will be working with the TUC and other public sector unions to ensure a coordinated response to these proposals.