Overview

This bill mandates the Treasury to create regulations limiting exit payments for public sector employees. These regulations, to be finalized by July 1st, 2022, can apply retroactively to payments made since April 1st, 2022.

Description

The Public Sector Exit Payments (Limitation) Bill aims to control the amount paid to public sector employees upon leaving their jobs. It requires the Treasury to draft regulations under Section 153A of the Small Business, Enterprise and Employment Act 2015 to restrict these payments. A key feature is the bill's allowance for these regulations to be applied to exit payments already made from April 1st, 2022, onwards. The bill applies to England, Wales, Scotland, and Northern Ireland and comes into effect upon passage.

Government Spending

The bill is expected to reduce government spending on exit payments for public sector employees. The exact amount of savings is not specified in the bill itself, as the specifics will be determined by the regulations to be created by the Treasury. The impact will depend on the content of those regulations.

Groups Affected

The bill primarily affects:

• Public sector employees: Their exit payments may be capped or limited by the new regulations.
• Public sector organizations: These organizations will be bound by the new regulations when making exit payments.
• The Treasury: Responsible for drafting and implementing the regulations.
• Parliament: The bill needs parliamentary approval to become law.

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