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<p>The government has previously consulted and legislated on the policy for a cap
of £95,000 on exit payments in the public sector. The consultation published on 10
April 2019 sought views on the draft regulations to implement this policy. An impact
assessment was conducted and published in the 2016 consultation ahead of the primary
legislation. Following the current consultation, a further equalities assessment will
be conducted on the final version of the legislation.</p><p> </p><p>The government
believes it is right to include all payments related to exit within the cap. The cap
does not affect any pension that a person has earned through their years of service
or have any impact on accrued pension rights. Instead the cap ensures that any additional
contribution to that pension made by the employer to fund early access to a pension
is limited to no more than £95,000, on account these costs are ultimately funded by
the taxpayer.</p><p> </p><p>We accept that there will be some circumstances where
it will be necessary or desirable to relax the cap. As such, a waiver system will
be in place for use in exceptional situations, including where imposing the cap would
cause genuine hardship.</p><p> </p><p>At the request of the Trade Union Congress (TUC),
HM Treasury officials met with the TUC and their members during the consultation period.
The government is currently considering responses to the consultation on the draft
regulations to implement the public sector exit payment cap. The government will respond
to the consultation and finalised regulations will be laid before Parliament in due
course.</p>
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