Victory On 95k Exit Cap! Government forced to revoke regulations.

In a humiliating climbdown the Tory Government have been forced to revoke the £95k exit cap regulations.

The government brief paper says “After extensive review of the application of the Cap, the Government has concluded that the Cap may have had unintended consequences and the Regulations should be revoked. HMT Directions have been published that disapply the Cap until the Regulations have been revoked.”

As UNISON and others had pointed out the “unintended consequences” included cutting redundancy payments to many low paid workers by including “strain costs” where those aged 55 or over are able to access an unreduced pension on redundancy.

UNISON was part of a legal challenge to the exit cap, and members of Tower Hamlets UNISON were among the applicants. A Judicial Review was imminent and UNISON was confident of a positive result.

This victory is testament to al the campaigning work that has gone on, and yet another example of the shambolic treatment of public service workers by this Tory Government.

Read the revised government guidance here
Guidance_to_Public_Sector_Exit_Payments