Currently, redundancy payments vary across the public sector, even for people with similar levels of pay and length of service. The proposals in the consultation will put pay-out terms between different workforces on a more equal footing, ensuring a fairer deal for public sector workers. The new rules will also align currently generous public sector redundancy payments with those available in the wider economy. Research indicates that redundancy pay is higher in the public sector. Between 2010-11 and 2013-14, redundancy pay averaged £12,700 in the private sector compared to £15,800 in the public sector. The proposed changes will make public sector redundancy payments fairer, modern, and more consistent.
They will apply to all major workforces including the Civil Service, Teachers, NHS workers, local government workers, police offers and firefighters. The changes include:
setting a maximum tariff to calculate exit payments at three weeks’ pay per year of service capping the maximum number of months’ salary that can be used to calculate redundancy payments to 15 months introducing a tapering element that will reduce the amount of compensation lump sum an individual is entitled to the closer they get to their retirement age setting a salary cap for calculating exit payments which will be based on £80,000 reducing the cost of employer funded pension top ups for early retirement as part of redundancy packages.
This consultation will run for 12 weeks and close on 3 May 2016
Changing an employee’s payroll ID 12 February 2016
HMRC has produced a YouTube video giving instructions on how employers should inform HMRC when they change an employee’s Payroll ID.
The video is on the YouTube channel under HMRC Guides for Customers .
Credit union payroll deduction schemes 12 February 2016
Scotland’s First Minister urges employers across Scotland to sign up to credit union payroll deduction schemes, which can be used by credit unions to help get employees saving each month and take control of their finances.
The Scottish Government’s Credit Union Working Group report – Scotland’s Credit Unions: Investing in Our Future – sets out measures to help increase the use of credit unions in Scotland, and encourage more people to save and borrow responsibly. According to the report all employers should offer payroll deduction schemes to allow employees to pay into credit unions. The report was launched by Business Minister Fergus Ewing at the Edinburgh headquarters of Lothian Buses, which already has 36 per cent of its employees signed up to a credit union through a payroll deduction scheme.
First Minister Nicola Sturgeon has also written a letter to employers across Scotland urging them to sign up to credit union payroll deduction schemes, which can be used by credit unions to help get employers on board.
There are currently more than 100 credit unions in Scotland, with a combined membership of more than 375,000. Six per cent of the population are enrolled in a credit union, compared to only 1.3 per cent in England, and 2 per cent in Wales. The report also highlights the need to improve financial education for young people, including looking at partnering with schools to promote junior saver schemes being run by credit unions, and teaching aspects of numeracy in a real life context.
Read more from The Scottish Government .
CIPP comment The CIPP fully supports credit unions. Payroll can help by offering a credit union facility in the workplace. Payroll
CIPP Policy News Journal
25/04/2016, Page 300 of 453
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