Cuts to civil service pay-offs

THE government has agreed a new redundancy scheme with five civil service unions, ahead of a wave of public sector layoffs when spending cuts start to kick in.

Firemen’s union the FDA, Prospect, the Prison Officers’ Association, GMB and Unite have all agreed to reduced terms for redundancy payouts, which will now be capped at one year’s salary for compulsory lay-offs and 21 months for voluntary redundancies. All civil servants will be given three month’s notice.

The government has also agreed to protect the low paid. The minimum payoff will be calculated as if the worker is earning at least £23,000, even if their salary is considerably less.

But highly-paid staff will have their salary capped at £149,820 when working out their pay-offs.

Francis Maude, minister for the cabinet office, said: “In today’s tough economic climate, we would be failing in our duty to the tax-paying public if we had allowed excesses.”