Overview

This bill mandates the Treasury to create regulations limiting excessive exit payments for public sector employees. These regulations, to be finalized by July 1st, 2020, can retroactively apply to payments made since April 1st, 2020.

Description

The Public Sector Exit Payments (Limitation) Bill aims to control the amount of money paid to public sector employees upon leaving their jobs. The bill compels the Treasury to draft regulations under Section 153A of the Small Business, Enterprise and Employment Act 2015. These regulations will set limits on exit payments. Crucially, the bill allows the first set of these regulations to apply to exit payments made from April 1st, 2020 onwards.

Key Aspects:

• Treasury's Duty: The Treasury must present draft regulations to Parliament by July 1, 2020.
• Retroactive Application: Regulations can apply to exit payments made from April 1, 2020.
• Geographical Extent: The Act applies across the UK (England, Wales, Scotland, and Northern Ireland).

Government Spending

The bill itself does not directly allocate or reduce government spending. Instead, it aims to control future spending by limiting exit payments, potentially saving public funds. The exact savings are impossible to determine without knowing the specific regulations the Treasury will create.

Groups Affected

The bill primarily affects:

• Public Sector Employees: Their exit payments may be capped, potentially reducing the amounts received upon leaving their jobs.
• Public Sector Organisations: These organizations will have to comply with the new regulations when making exit payments.
• The Treasury: Responsible for drafting and implementing the regulations.

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