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<p>The Government consulted on implementing a public sector exit payment cap in July
2015. The Government response to this consultation was published on 16 September 2015.
This response provides detail on the potential impacts of the cap and sets out which
organisations the Government intends to capture within scope of the public sector
exit payment cap. The final policy is in line with the Government’s manifesto commitment
to end tax payer funded six figure payoffs for public sector workers.</p><br /><p>The
consultation ran from 31 July to 27 August 2015. Over 4000 responses were received.
These representations were considered during and after the consultation to inform
the Government response that was published on 16 September 2015.</p><p>The response
document can be found at the following link: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/464367/Public_sector_exit_payments_response.pdf</p><p>An
impact analysis was published within the exit payment cap consultation document which
respondents had an opportunity to comment on. Further, the Government worked with
departments and took into account consultation responses received after the official
deadline to inform the impact of a public sector exit payment cap set at £95,000 in
different sectors and for different categories of workers. This assessment gave due
regard to the Public Sector Equality Duty.</p><p>The exit payment cap is intended
to capture organisations classified as public sector by the Office for National Statistics
with few exceptions as identified in the consultation response.</p><p>The Government
does not expect the cap to have a widespread impact on the take-up of voluntary redundancy.</p><p>At
the 2015 Spending Review the Government announced it will consult on further cross
public sector action on exit payment terms. This consultation will provide a good
opportunity to collect further information on the trends in the level of exit payments
between the private and public sector.</p>
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