Government Revokes Exit Payment Cap Regulations

Publish date: 13/02/2021

The Government has revoked the Exit Payment Cap Regulations and produced guidance on what affected employees and employers should do during the time they applied.

The Government have revoked the regulations and states "After extensive review of the application of the Cap, the Government has concluded that the Cap may have had unintended consequences and the Regulations should be revoked. HMT Directions have been published that disapply the Cap until the Regulations have been revoked"

LLG along with ALACE issued Judicial Review Proceedings against the Government on the regulations and received permission back in December 2020.

Quentin Baker, LLG President said "Naturally we're delighted that the Government has chosen to revoke these ill-conceived regulations which unfairly impacted upon long serving local government employees". We await formal communication from the Govt Legal Service as to their proposals regarding the Judicial Review Proceedings."


Deborah Evans, CEO of LLG stated ""The revocation of the ill informed and ill timed exit payment cap regulations gives light to the many long serving local authority staff who face redundancy both now and in the future, or have been made redundant in recent months. Pensions are the foundation stone of retirement, and we are overjoyed that the erosion of pension rights has been stopped in its tracks. LLG and ALACE have worked tirelessly to challenge these regulations, as have so many other organisations, and we welcome the governments decision to reconsider"

You can read the short guidance here