Overview

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

Description

The Public Sector Exit Payments (Limitation) Bill aims to control the amount paid to public sector employees upon leaving their jobs. It compels the Treasury to draft and present to Parliament regulations under Section 153A of the Small Business, Enterprise and Employment Act 2015. These regulations will set limits on exit payments. Importantly, the first set of regulations can be applied retrospectively to exit payments made from April 1st, 2020 onwards. 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 by limiting the amount paid in exit packages to public sector employees. Specific figures are not provided in the bill itself, but savings will depend on the final regulations set by the Treasury.

Groups Affected

The bill primarily affects:
• Public sector employees: Their exit payments could be significantly lower than previously anticipated.
• Public sector organizations: These organizations will have to comply with the new regulations and potentially adjust their budgeting accordingly.
• The Treasury: Responsible for drafting and implementing the regulations.

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