Reforms to public sector pay – further delays announced

We have previously reported on the upcoming cap on public sector exit payments and clawback (recovery) Regulations. On 16 September 2016, the Government reportedly announced the following update:

  1. There will be a further consultation this autumn on the Regulations for the £95,000 exit payment cap, so they will not be in force in October as originally anticipated. Following this consultation, it is hoped that regulations will be published and in force early next year.
  2. The recovery regulations for those earning £80,000 or more are expected to be published and in force this year, subject to their passing by both Houses of Parliament under the affirmative process.
  3. The Government’s response to the February consultation on further reforms to public sector exit payments should be published shortly.

There is no further update as to whether housing associations will be affected by the Regulations, in light of the ONS reclassification of Registered Providers last year as ‘public sector’. The Government has previously stated that it is not their intention to include them, but this cannot be confirmed until the final form Regulations are published.

Devonshires Solicitors LLP actively monitors the latest developments in government law reform on a variety of subjects, including public sector pay. For any further questions on these public sector payment regulations and how they may affect you or your organisation, please contact a member of the Devonshires Employment Team.



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