The Municipal Journal has reported on the Government reversal of its decision to impose a £95,000 cap on exit payments on public sector authorities, admitting the controversial policy has had ‘unintended consequences’

The Treasury, which set the limit on payments to council staff leaving their jobs in November despite meeting opposition from unions and some sector bodies, has now said the regulations should be ‘revoked’. It said that ‘after extensive review of the application of the cap, the Government has concluded that the cap may have had unintended consequences.’

The High Court was due to hear a joint legal challenge by Lawyers in Local Government and the Association of Local Authority Chief Executives, as well as a second case brought by Unison next month.

These bodies now await formal communication from the Government Legal Service on their proposals regarding the judicial review proceedings.

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The Municipal Journal - Exit pay cap revoked