Overview

This bill mandates the UK Treasury to create regulations limiting exit payments for public sector employees. These regulations, to be implemented by January 1st, 2025, will retrospectively apply to payments made after October 1st, 2024, aiming to control public spending on employee departures.

Description

The Public Sector Exit Payments (Limitation) Bill requires the Treasury to draft regulations under Section 153A of the Small Business, Enterprise and Employment Act 2015. These regulations will restrict the amount of money paid to public sector employees upon leaving their jobs. Crucially, the first set of regulations can be applied retrospectively to exit payments made from October 1st, 2024 onwards. The bill applies to England, Wales, Scotland, and Northern Ireland and comes into force upon its passing.

Government Spending

The bill aims to reduce government spending on exit payments for public sector employees. While specific figures are not provided in the bill itself, the intention is to limit the amount paid out in severance packages, leading to potential cost savings for the UK government.

Groups Affected

The bill primarily affects:
• **Public sector employees:** Their exit packages may be capped by the new regulations, potentially reducing the amount received upon leaving their jobs.
• **Public sector organisations:** These organisations will need to comply with the new regulations when making exit payments.
• **The UK Treasury:** Responsible for drafting and implementing the regulations.

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