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'Golden parachute' deals to be axed

The Government is to move to end six-figure "golden parachutes" for high-earning public sector bosses who are made redundant.

The Queen's Speech next week will include legislation to enact the Conservatives' general election manifesto pledge to cap the amount public sector employees can receive if they lose their jobs.

Ministers say the measure - to be included in the Enterprise Bill - could save the taxpayer millions of pounds.

According to officials, more than 1,800 public sector employees received pay-offs of more than £100,000 in 2013.

The Government will consult on the detail - including whether it will cover the BBC - but ministers are said to be "minded" to set the cap at £95,000.

At the same, the Government will go ahead with the implantation of new rules agreed in the last parliament to claw back pay-offs to public sector workers who return to work in the same part of the public sector after only a short time.

Chancellor George Osborne said: "It is not right that working people should have to fork out for golden parachutes worth hundreds of thousands of pounds for public sector workers when they are made redundant.

"That's why we are delivering on our pledge to end six figure pay-offs for the best paid public sector workers, ensuring fairness and value for money for the taxpayer."

Treasury Chief Secretary Greg Hands said: "These reforms will ensure fairness and value for money across the public sector."


From Belfast Telegraph