Parliamentary.ai

Overview

This bill amends the Ministerial and other Pensions and Salaries Act 1991. It proposes to change the eligibility criteria for a grant payable to former ministers, requiring them to have served for at least two years to qualify.

Description

The bill modifies Section 4 of the 1991 Act. Specifically, it adds a condition to subsection 6(a). This condition states that a person leaving ministerial office is only entitled to a severance grant if they held the position continuously for two years or more. The bill applies across England, Wales, Scotland, and Northern Ireland and comes into effect upon passage.

Government Spending

The bill is expected to reduce government spending on ministerial severance grants. The exact amount of savings is difficult to predict without knowing the number of ministers who leave office after less than two years and the value of their individual grants. However, the potential savings could be substantial depending on the frequency of shorter ministerial appointments.

Groups Affected

• Ministers: Those leaving ministerial office after less than two years will no longer be eligible for a severance grant. This could significantly affect their financial situation upon leaving office.
• UK Treasury/Government: Will experience a reduction in government expenditure on ministerial pensions.
• Taxpayers: Will see a potential reduction in government spending, albeit the exact savings are uncertain.