• Public Sector Exit Payments

    29 July 2019

    Dear Constituent,

    Thank you for contacting me about public sector exit payments.

    I understand your concerns regarding exit payments in the public sector and welcome the opportunity to explain why this measure is being taken.

    Exit payments can be important to employers’ ability to reform and react to new circumstances, while providing support for employees as they find new employment. It is also important that public servants are properly rewarded for the vital work they do.

    That said, six figure exit payments are far in excess of those available to most workers in the public sector or wider economy, and I do not believe such payments are proportionate or fair to taxpayers. That is why I welcome plans to cap exit payments in the public sector at £95,000.

    Under Government plans, exit payments beneath the cap will continue to be available, so that public sector employees can support their families, find new employment or have a bridge until retirement age. I am glad this policy has been carefully designed to protect long-serving, lower-earning staff.

    A public consultation on how the exit payments cap should be implemented has been run, which gave those with concerns the opportunity to feed in their views on this reform. This consultation concluded in July and I look forward to reading the Government’s response in due course.

    Thank you again for taking the time to contact me.

    Yours sincerely,

    Mel Stride MP

    MP for Central Devon