Overview

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

Description

The Public Sector Exit Payments (Limitation) Bill aims to control the amount public sector organizations pay departing employees. 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 first set of regulations can be applied retrospectively to payments made from April 1st, 2022 onwards. The bill applies across England, Wales, Scotland, and Northern Ireland and comes into effect upon parliamentary passage.

Government Spending

The bill is expected to reduce government spending on exit payments for public sector employees. Exact figures are not specified in the bill itself; the impact will depend on the specific regulations created by the Treasury.

Groups Affected

This bill primarily affects:
• Public sector employees: Their severance packages may be capped by the new regulations.
• Public sector organizations: They will need to comply with the new regulations when making exit payments.
• The Treasury: They are responsible for drafting and implementing the regulations.

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