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<p>The Government made a manifesto commitment to end six-figure payouts in the public
sector and wants to do so as soon as possible. These payments cost around £2 billion
a year and it is important that they are fair, proportionate and provide value for
money to the taxpayer that funds them. As such, the Government does not see any case
for transitional arrangements to delay ending six-figure exit payments. However, the
power for Ministers to relax the restrictions imposed by the cap provides the flexibility
to do so in appropriate circumstances.</p><p> </p><p>Automatic indexing would fail
to offer the flexibility that the clause currently provides for. As it stands, the
Government can amend the level of the cap to take into account all prevailing circumstances,
and with the additional scrutiny of the affirmative resolution procedure in Parliament.</p>
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