Public Sector Exit Payments (Limitation) Bill

Key Points

• Aims to limit exit payments (such as severance or redundancy payments) by certain public sector organisations to employees.
• Scope is limited to specific public sector employers, with the exact coverage defined in the bill.
• The bill would set out the rules for the size of payments and when they can be paid; detailed limits and exemptions would be provided within the bill itself.
• Introduced in the House of Commons by backbench Conservative MP Sir Christopher Chope; currently at the 2nd Reading stage.

Progress

The bill has completed its first reading (in October 2024) and is at the 2nd Reading in the Commons as of April 2026. If it passes the Commons, it would move on to the Lords for further consideration.