Public Sector Exit Cap

Public Sector Exit Cap

The Governments proposals to limit Public Sector Exit Payments in England and Wales (separate arrangements exist for Scotland and Northern Ireland) to £95,000 have now been passed into legislation and are due to come into effect on Wednesday 4th November 2020.

There are particularly far reaching and negative consequences for GMB members employed in Local Government who are aged 55 and over and are made compulsory redundant. This is because after 4th November pension strain costs will be included in the exit calculation and this will take the majority of Local Government exit payments over the £95k cap.

GMB have written to the government to point out the regulations in their current form are unworkable, conflict with existing employment protections and will have a disproportionate impact on low paid workers in Local Government than was intended.

Due to the lack of any meaningful response we have now lodged an application with the courts to seek a Judicial Review of the regulations and we are hoping to have a hearing as soon as the courts allow.

GMB believe that the regulations are wholly unfair on our membership and that the government should withdraw them.

GMB urges you to contact your local GMB Branch/Office as a matter of urgency should your employer propose to make any compulsory redundancies.

We will endeavour to keep members updated on progress but please feel free to view the GMB Public Sector Noticeboard where Bulletins and other relevant documents will be posted.