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Civil service ‘outrage’ at cap on pay-offs

Slice and dice: Chancellor George Osborne and his Treasury team
12 April 2012

Civil service trade unions today warned of strike action over Government plans to cut redundancy terms for public sector staff.

The Public and Commercial Services union said it would use "all means" at its disposal to fight the proposals.

Francis Maude, Minister for the Cabinet Office, was today set to announce a cap on pay-offs as part of efficiency savings across Whitehall.

The PCS union won a High Court case against the previous Labour government which had attempted to reduce compensation pay, but the new Government wants to introduce fresh legislation to bypass the legal ruling. The Cabinet Office confirmed that ministers intended to go ahead with reform of the Civil Service Compensation Scheme.

PCS general secretary Mark Serwotka said: "It would be outrageous if the Government were to seek to change the law to get around the clear decision of the High Court, which has ruled twice in our favour."

Regional rates of pay could also be introduced in the Civil Service.

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