The Government is ready to act to end six-figure “golden parachutes” for high-earning public sector bosses who are made redundant.
The Queen’s Speech next week will include legislation to enact the Conservatives’ general election manifesto pledge to cap the amount public sector employees can receive if they lose their jobs.
Chancellor George Osborne said “it was not fair that hard-working people see taxes used for these massive payouts for people who leave the public sector.”
According to officials, more than 1,800 public sector employees received pay-offs of more than £100,000 in 2013.
The Government will consult on the detail – including whether it will cover the BBC – but ministers are said to be “minded” to set the cap at £95,000.
A controversial child protection chief has quit her job with a six-figure payoff – only to be immediately rehired on almost £1,000 a day.
Deputy children’s commissioner Sue Berelowitz, who was criticised for failing to speak out about sexual abuse by British Pakistani gangs, took voluntary redundancy from her £99,333-a-year post on April 30.
She received a pay-off worth £134,000. But the next day she was rehired as a consultant, leading an inquiry into family child abuse that she had been in charge of in her former role.
The 61-year-old will be paid £960 a day under the new deal and will work for up to nine days a month. It means she will earn almost the same amount as she had been as a full-time employee – for much less work.
Last night, as MPs and victims’ groups described the deal as scandalous, the Treasury launched an inquiry into how it was agreed.
The Chancellor last night pledged to crack down on the abuse, putting an upper cap of £95,000 on the amount of redundancy that can be paid.
Keith Vaz, the former head of the Commons home affairs select committee, said the payoff received by Miss Berelowitz was ‘totally unacceptable’.
He added: ‘There is no justification for a public official to receive such a huge sum of money to then continue to do the same work.’ A Treasury spokesman added: ‘It’s wrong for someone to take redundancy payments then be immediately rehired as an external consultant.’
© Paul Rogers – WPA Pool/Getty Images File picture of Prime Minister David Cameron and Secretary of State for Work and Pensions Iain Duncan Smith talking with Shahida Din at the A4e (Action For Employment) office in Brixton in London, England.
David Cameron has re-appointed the millionaire Iain Duncan Smith as Work and Pensions Secretary, meaning he will be in charge of making the huge benefit cuts the Conservatives pledged in their manifesto.
The man who presided over the ‘bedroom tax’ and the £26,000 benefits cap now has to find a further £12 billion in welfare savings.
The pledge – which will hit the working age poor – was one of the most controversial parts of the Conservative manifesto.But during the campaign they only said where £2 billion of these savings would come from. With a further £10 billion to find, here are eleven reasons why people should be worried about the ruthless figure of Mr Duncan Smith returning to the Department for Work and Pensions. Read whole article
Harlow MP Robert Halfon has been appointed as the new deputy chairman of the Conservative Party.
Halfon’s new post was announced as David Cameron continued to appoint ministers this morning:
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