Chiefs ‘could forfeit pay-outs’

p5333UK-News-4-1

Published: Tuesday 28th October 2014 by The News Editor

Comments (0)

Highly paid public sector administrators who receive large redundancy pay-outs then return to the same part of the public sector could be forced to hand back the money to the Exchequer.

The Treasury is setting out proposals for legislation requiring individuals earning more than £100,000 who return to the same part of public sector within 12 months of taking redundancy to return all or part of their pay-off.

It is expected the measure – which is included in the Small Business, Enterprise and Employment Bill currently going through Parliament – will mainly affect NHS and local government administrators.

The Treasury said that of the 19,000 NHS administrators made redundant between 2010 and 2013, almost 20% rejoined the NHS while 16% of local government chief executives who left by mutual agreement between 2007 and 2009 had been employed by another council within a year.

Chief Secretary to the Treasury Danny Alexander said: “It’s only fair that highly-paid executives who receive a redundancy pay-out from the public purse and then quickly return to the same part of the public sector repay the taxpayer.

“Reforming the public sector so it works for Britain has been a key part of this government’s drive to create a stronger economy and fairer society.”

If the measure becomes law, it will take effect from 2016.

For Labour, shadow treasury chief secretary Chris Leslie said the measure was “too little, too late”.

“Ministers could have acted on this years ago before they wasted millions of pounds firing and then rehiring staff. In the NHS alone, the Government’s reckless reorganisation has seen £1.6 billion spent on redundancies,” he said.

Published: Tuesday 28th October 2014 by The News Editor

Comments (0)

Local business search