Cap on exit payments for public-sector workers removed

Implementation date: 12 February 2021

The Exit Payment Cap Directions 2021, issued by HM Treasury, disapply the cap on exit payments for public-sector workers.

The Restriction of Public Sector Exit Payments Regulations 2020 (SI 2020/1122), introduced on 4 November 2020, brought in the cap on exit payments for public-sector workers. However, according to the Government, the cap may have had "unintended consequences".