Public Sector Exit Payments: a new controls process for high exit payments

The government believes that staff exits, and corresponding exit payments, have an important role to play in facilitating organisational changes in the public sector. However, it is vital that such exits are agreed through a rigorous process where value for money is considered, and alternatives robustly explored.

We are proposing to introduce an expanded approvals process for employee exits and special severance payments, and additional reporting requirements, in relevant parts of the public sector. This is intended to allow for additional scrutiny and assurance of exit decisions, and to provide further insight on the use of exit payments. This will support Government’s wider ambition to reduce the use of large exit payments in the public sector, improving the consistency and accountability of decisions to exit public sector employees at a cost to the taxpayer.  For the first time, it will set the expectation that recovery of special severance payments should be considered across central government, where such payments are agreed.

We would like views from any interested parties on the proposed guidance and whether it meets the policy intent, is clear and operational.

This consultation opens on 8 August 2022 and will run for 10 weeks, closing on 17 October 2022.