The Restriction of Public Sector Exit Payments (Revocation) Regulations 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations revoke the Restriction of Public Sector Exit Payments Regulations 2020 (“the 2020 Regulations”), which came into force on 4 November 2020 and imposed a cap of £95,000.00 (“the cap”) on relevant exit payments.

Regulation 4 applies to a relevant authority which, as a result of the operation of the cap had reduced the amount of an exit payment (“capped payment”) paid to a person (“P”), or on behalf of P, to another person (“AP”) or a relevant public sector scheme (as defined in section 151A(11) of the Small Business, Enterprise and Employment Act 2015 (c.26)). As a result of the revocation of the 2020 Regulations, the relevant authority must pay an amount (including interest) such that the recipient of the capped payment is treated as if the cap had never applied. In some cases, it may be necessary to pay that amount in part to P or AP and in part to the relevant public sector scheme.

A full impact assessment has not been provided for these Regulations as no, or no significant impact on the private, voluntary or public sectors is foreseen.