Written question asked by Lord Mann (Labour) on Wednesday, 26 May 2010, in the House of Commons. It was due for an answer on Wednesday, 2 June 2010. It was answered by Danny Alexander (Liberal Democrat) on Monday, 21 June 2010 on behalf of the Treasury.

Public Sector: Redundancy Pay

Question: To ask the Chancellor of the Exchequer what powers he has to limit the level of high-value severance packages paid to public sector employees.

Answer: Severance packages are generally agreed by the relevant public sector employer, within parameters that have been set out for that employer with the responsible Minister's agreement and which have previously been approved by the Treasury. However, Departments are required to seek prior Treasury approval before they can make or approve any novel or contentious payment that falls outside such parameters, including any with a value in excess of the maximum that is contractually due. Details on the requirements for such specific Treasury approval are set out in 'Managing Public Money' Annex 4.13.

Secondary information