A Cabinet consultation paper published on Monday estimates the proposed changes could cut the average severance package by more than a quarter. The plans come as Jacob Rees-Mogg, the government’s efficiency minister, works to shrink the Civil Service by a fifth. A previous attempt by the government to cut wages due to redundancies was blocked in the courts in 2017 and unions have vowed to fight against the new plans.
“The government wants to make the cuts cheap”
Mark Servotka, general secretary of the PCS union, said: “With the mock two per cent pay offer and the threat of 91,000 job cuts, these proposed cuts to our members’ redundancy terms add insult to injury. “It’s clear the government wants to cut jobs on the cheap. “PCS will fight these proposals as we did in 2017, when we successfully persuaded the high court to overturn previous government attempts to remove our members’ redundancy rights.” PCS, which represents around 180,000 public sector workers, was already planning to ballot members for strikes over pay, pensions and jobs. The consultation paper says the latest proposal could “generate significant savings in current expenditure costs”. Measures to achieve this include limiting payments to three weeks’ pay per year of service, up to a maximum of 18 months, and limiting compulsory redundancy to nine months’ salary.
“Reforming the system is a long-term policy”
A Cabinet Office spokesman said: “Against a backdrop of high national debt and increasing cost pressures, it is vital that all areas of government spending, including the public service compensation system, are affordable and fair for both staff and the taxpayers. “Reforming the system is a long-term policy and is not linked to reductions in the number of employees. We will continue to work closely with the unions on these proposals.” The final decision on whether to go ahead with the plans will fall to the next Tory leader and prime minister – either Liz Truss or Rishi Sunak. Both have pledged to cut public service costs, with Mr Sunak recently pledging to cut jobs on Monday. Mrs Truss, the foreign secretary, was forced to abandon an £8.8bn plan to cut wages outside London after critics said it would “take down” the country.
