Public sector bosses will finally have their pay-offs capped at £95,000 — four years after the plan was announced

PUBLIC sector fat cats will finally have their pay-offs capped at £95,000 – a staggering four years after the plan was announced.

Liz Truss said the Treasury is acting to end huge golden goodbyes to protect the money of hard-working taxpayers.

Liz Truss
Liz Truss says the move protects the money of hard-working taxpayers
Alamy Live News

More than 1,600 public sector bosses were given pay-offs of £100,000 or more in the year 2016/17 – costing £198million.

But the proposal was first announced by ministers in July 2015 – when David Cameron was still PM.

It comes after a damning report yesterday revealed that 2,454 council chiefs raked in £100,000 a year or more in pay and benefits last year.

Ms Truss said: “It is clearly wrong when people leave public sector roles with massive payoffs.


“It incenses the public when they see their hard-earned money used badly like this.

“That’s why we are capping exit payments to stop unacceptably large pay-outs for senior managers.”

Exit payments across the public sector cost taxpayers a staggering £1.2billion in 2016/17, according to the Treasury.

Ministers are launching a consultation on how the cap will work.

The policy was initially announced by Greg Hands when he was Chief Secretary to the Treasury in 2015.

He announced that the Government was “not prepared to stand by and allow huge payoffs at a time when we are having to find savings in our public services”.

But the system carried on for four more years.

The Sun Says

FOR more proof of this Government’s ­woeful paralysis, look no further than the “new” cap on Town Hall chiefs’ payoffs.

Of course it’s right to slash them. And £95,000 of public money is still generous.

But this limit was unveiled four years ago. We are on our second Prime Minister since then, and soon to get a third. A referendum and election have come and gone. Still this policy is not in place.

Even now we must wait, pending another “consultation”. All the while council chiefs on fat six-figure salaries still enjoy scandalously lavish payoffs.

It is any wonder our faith in politicians is so shattered? They seem unable to get anything done.

List of public sector bosses who got six figure golden goodbyes:

  • A former Executive Director of Resources for Coventry council left with a package worth £448,230
  • Ada Burns, former Chief Executive of Darlington Council got £201,000 retirement package
  • A former Executive Director of Resources for Coventry council received a pay-out of £448,230 when leaving office
  • J Sumner, Assistant Chief Executive of Programme, Projects & Performance got a pay-out of £157,065 when leaving Hackney Council
  • Slough paid their interim Chief Executive, Roger Parkin a golden goodbye of £142,215 despite being in post for little more than a year


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