Redundancy pay capped for those in civil service jobs

People in civil service jobs are to have redundancy payments capped, should they ever be forced out of work.

New government legislation is set to bring the civil service redundancy package in line with the private sector and cap pay at one year’s salary.

The new legislation will offer 15 months’ pay to those who voluntarily leave their post.
Accrued pension rights will not be affected, the government has said.

Francis Maude, minister for the Cabinet Office, said that the changes had come about as a result of the recent economic crisis and the government’s subsequent bid to try and control the country’s finances.

He said: “Sadly, the huge deficit we inherited means there is a real urgency now for change. It is for this reason, and in the light of the current deadlock, that we have had to reluctantly start this process.”

Under the current system, some people in civil service jobs would be eligible to a redundancy package worth more than six years’ pay.