Civil servants’ redundancy pay to be slashed

The government plans to push through emergency legislation to reduce the cost of cutting thousands of public sector jobs.

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by Victoria Bischoff on Jul 05, 2010 at 09:08

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Emergency legislation to slash redundancy payments for civil servants could be forced through ahead of government plans to cut thousands of public sector jobs in an attempt to reduce the country’s deficit.

At present redundancy payouts for some civil servants are as much as six years’ salary, compared to the private sector where the statutory minimum for redundancy pay is just one week for every year of service.

Ministers are scheduled to meet civil service union officials today to discuss plans to reform the Civil Service Compensation Scheme (CSCS) and bring it 'more in line' with the private sector.

A spokesperson for the Cabinet is reported to have said: ‘As outlined in the coalition agreement, we are looking at ways to reform the CSCS to bring it more into line with good practice in the private sector’.

‘Our intention would always be to seek to reach a negotiated agreement, which would include protection for lower paid civil servants’.

However, it is thought unions are likely to take industrial action to prevent the legislation going ahead.

Last month, the government lost a court battle over attempts to reduce redundancy payments, following a legal challenge from the Public and Commercial Service (PCS) union.

The court ruled the changes to the CSCS, initially put forward by Labour last year, could not be made without union consent. However, ministers are looking to change this law in order to force through the legislation.

A spokesperson for the union described government plans to change the law as ‘absolutely outrageous’ after the High Court ruled the previous government’s attempt to reduce redundancy pay as unlawful.

‘Members will use any means at their disposal to protect their jobs and the essential public services they provide’, he added.

Economists warned earlier this month that job losses in the public sector could reach 725,000, under government plans outlined in the emergency budget to cut unprotected departmental budgets by 24% over the next four years.

This is in addition to a two year public sector pay freeze for public sector servants paid more than £21,000 and an investigation into public sector pensions.

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5 comments so far. Why not have your say?

During an acrimonious interview this morning John Humphrys failed to point out that as well as very generous severance terms public servants in local authorities have a basic week of 35 hours, one of the reasons why it's hard to get an answer after 4 pm.. How does this compare with the private sector?

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People in the public sector just don't get it, some worker in private sector have not had wage rises for years. Where do the civil servants and local government workers think the money is coming from? Their wages are paid from our taxes and council tax, which has gone up way above inflation for years. The disparity with perks like retiring at 60 and bullet proof pensions has been allowed to develop over the years.

At last we seem to have a government, (all be it a Lib/Con Coalition) that seems to be taking the bull by the horns and are willing to actually do something about the unfairness of the present system. Long may it continue, we also need to get rid of all the quangos, who needs a 'Potato Council'? What do they do?

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As well as the very generous redundancy payments, which are tax free, civil servants, other public employees, local authority and quango staff can receive additional pension payments which in some cases can amount to 10 years added service. In times of restructuring when public employers are anxious to reduce headcount, redundancy terms included in 'confidentiality agreements' may enhanced even further. as an incentive for staff to leave.

It is not suprising that some staff are quite happy to leave under such terms and then take on payed employment, sometimes as consultants to their previous public employer.

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Take the public sector on, it's disgusting they are paid by the tax payer and must not have any perks or pensions any better then the private sector, we require new laws,to have total transparency on all councils and public sector depts and bodies.

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snoekie

Jul 05, 2010 at 17:46

For the middle and upper echelons, it is over generous (the redundancy).

Local authority pension funds are held on the same basis as private funds, and because of the pensions raids are now underfunded and the public is about to be 'taxed' yet again to make up the deficit, caused by Craven Brown's pension raids.

They are presently allowed to retire at 60 with a very decent pension which others have to work more years for and cannot get public support for the damage done to their pension pots by Craven Brown/Balls raids.

As for redundancy, not before time, probably whacked up under Zanulibore (but I am not certain). Let them eat bread like the rest of us, never mind cake with double cream, strawberries and icing on top.

I also think that those who allowed it should be held to account and their pensions cancelled/docked for the poor judgment in looking after public money.

To close, the public sector pensions should adjusted to reflect the diminution of the private sector pensioners loss, and back dated.

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