The Regulations imposing a £95,000 cap on public sector exit payments are in force from 4 November 2020.
In the summer we alerted you to the fact that the Government had resurrected the idea of a cap to public sector exit payments. The Regulations introducing a £95,000 cap on public sector exit payments have now passed through Parliament and came into force on 4 November 2020.
The Regulations provide that any relevant authority must not make an exit payment to a person which exceeds the exit payment cap in respect of a relevant public sector exit. The exit payment cap is currently £95,000, although the Government has indicated that it intends to keep this figure under review. Please see our earlier alert for further details of the Regulations, including exceptions.
Importantly, the Regulations will apply to all payments made on or after the 4 November 2020, even if the payment relates to contractual arrangements made before that date.
The Restriction of Public Sector Exit Payments Regulations 2020
