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Government targets six-figure public sector payoffs

The Government will announce plans to curb public sector payouts in the Queen's Speech. Credit: REUTERS/Suzanne Plunkett

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.

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