Ministers' attack on public sector workers' redundancy rights is 'complete insult'

21 Jul 2020
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New exit cap regulations will hit council workers earning as little as £23,500

GMB, the union for public sector workers, has condemned the Government's announcement that it will impose a cap on exit payments that will affect thousands of low-paid workers who face redundancy.

Ministers have decided to push ahead with damaging plans to include 'pension strain' costs - the gap between expected and actual pension payments when a worker is made redundant - in their calculations, the union said.

The LGA has warned that the cap 'could cover local government workers who have decades of service and earn less than £23,500 a year.'

Rachel Harrison, GMB National Officer, said:

"The Government is paying no attention to consultation responses and pushed ahead with this damaging policy.

“GMB has been challenging these proposals for several years as we believe them to be completely unnecessary and unworkable in their current form.

“Our members negotiated changes to their pension schemes and terms and conditions in good faith and these agreements have already delivered significant savings to the Treasury.

“Today's response to the consultation makes no changes whatsoever to the worst aspects of the exit cap.

“This is a complete insult to the thousands of public sector key workers who have kept us going through the pandemic.”

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