Urgent Call for Action on the The Restriction of Public Sector Exit Payments Regulations 2020

Publish date: 21/09/2020

In light of The Restriction of Public Sector Exit Payments Regulations 2020 being put before the House of Lords on Wednesday for approval; ALACE, the (the Association of Local Authority Chief Executives and Senior Managers) are calling for help to avert an issue which affects many local authority employees and might well affect you. Indeed, LLG takes the view that this is an exceptionally important and far more reaching issue then many people at first glance have appreciated. We will be responding to the consultation ‘Reforming Local Government Exit Pay’ closing on the 9th November ( which looks at exist payment terms) however of immediate concern is the pressing need to raise concerns with members of the House of Lords in particular, by Tuesday (22nd Sep) night at the latest- or preferably sooner. Last year, ALACE, one of the trade unions, showed the Treasury how including pension strain within the cap would affect long-serving staff earning well under £40,000. The pension strain for staff in their mid- to-late 50s in one council, with service in the range of 35 to 39 years and earning between £31,000 and £34,000 would exceed £100,000 if made redundant. The redundancy payments in each case would be well under £20,000. The Treasury regulations which cap exit payments at £95k would mean that they would all suffer a reduced pension, for the rest of their lives. To read more about what you can do, including a template letter, read on ..

To view the letter from ALACE to its members including steps you can take, background to the changes and a draft template to send to the House of Lords members click here

To read a background brief from ALACE click here