Overview

This bill mandates the Treasury to create regulations limiting excessive exit payments given to public sector employees. These regulations will apply retroactively to payments made since April 1st, 2018, and aim to control public spending by capping severance packages.

Description

The Public Sector Exit Payments (Limitation) Bill compels the UK Treasury to draft and present regulations to Parliament by April 1st, 2019. These regulations, operating under the Small Business, Enterprise and Employment Act 2015, will restrict the amount of money paid to public sector employees upon leaving their jobs. Crucially, the bill allows the first set of these regulations to be applied retroactively to exit payments made from April 1st, 2018 onwards.

Key Features:

• Mandates the Treasury to create regulations limiting public sector exit payments.
• Allows retroactive application of regulations to payments made since April 1st, 2018.
• Uses existing legislative powers under the Small Business, Enterprise and Employment Act 2015.

Government Spending

The bill aims to reduce government spending by limiting the cost of exit payments in the public sector. While no specific figures are provided in the bill itself, the intention is to curb potentially excessive payouts and save taxpayer money.

Groups Affected

The bill primarily affects:

• Public sector employees: Their potential exit payments may be capped, reducing the amount they receive upon leaving their jobs.
• The Treasury: Responsible for drafting and implementing the regulations.
• Parliament: Will review and approve the regulations.
• Taxpayers: May see savings in public funds if the bill succeeds in limiting exit payment costs.

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