Following regulations being laid over the summer implementing a
cap of £95,000 on exit payments for public sector employees,
the Ministry of Housing, Communities and Local Government (MHCLG)
is consulting on the impact of the proposed reforms to exit
payments made to local government employees. This includes changes
that will affect redundancy payments and the early retirement terms
available on redundancy.
You can read a copy of the consultation document
here. The consultation will close on 9 November 2020.
Key action points
1. Review how these changes may affect your business and
resource planning
Whilst the changes to the possible range of exit terms are still
at the consultation stage, the exit cap is anticipated to come into
effect towards the end of this calendar year. The exit cap will
apply to all exit payments associated with loss of employment,
although the local government consultation is focussed primarily on
redundancy issues. This means that the