
Treasury scraps £95,000 cap on public sector pay-offs
Getty ImagesThe government is scrapping a cap of £95,000 on public sector redundancy payments, after court action by trade unions.Ministers say they are looking for new ways to tackle excessive pay-outs for higher earners. Those who have left their jobs since the change was introduced in November should be reimbursed the shortfall.A Treasury spokesman said the cap was withdrawn due to "the unintended consequences" it had on employees. They added that the government remained committed to bringing forward proposals to tackle unjustified exit payments. What are my rights if I am made redundant?The cap came into force last November, with the aim of ensuring exit payments represented value for money and were fair to taxpayers. But unions had fought the move, seeking a judicial review into the...