30% cut to civil service redundancy pay stopped for at least a year

14 May 2020

Today, in response to a PCS demand, the Cabinet Office has written to confirm that proposals to make major cuts to civil service redundancy pay will be halted for at least a year, to April 2021.

Back in 2016 the government cut the civil service redundancy pay scheme by 30%. In 2017 PCS won a court case which overturned these cuts and reinstated the old terms. Since then successive governments have been threatening to reinstate the cuts, and PCS has been in talks for three years trying to stop these cuts. This legal victory has meant that thousands of members have benefited from much higher redundancy payments, and many more redundancies have been avoided as a result of the higher costs of making job cuts. Today’s letter will bring certainty to members facing redundancy, and the increased costs of redundancies over the next 12 months will reduce the risk of redundancy.

PCS has made four interim demands to help staff who are facing challenging times during the coronavirus pandemic, many of whom are key workers carrying out essential work. 

They are:  

  • An immediate across-the-board, above-inflation pay increase for all staff  
  • A 2% reduction in pension contributions  
  • No changes to the civil service redundancy scheme  
  • A moratorium on office closures and redundancies. 

The concession on redundancy pay meets one of those four demands. A meeting with the Cabinet Office will take place on Monday (18 May 2020), to discuss pay, pension contributions and office closures. The National Executive Committee will meet on Thursday 21 May to discuss progress on these demands. Further communications with members will follow.

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