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Treasury

Volume 683: debated on Monday 2 November 2020

Draft Restriction of Public Sector Exit Payments Regulations 2020

The following is an extract from the Third Delegated Legislation Committee on the draft Restriction of Public Sector Exit Payments Regulations 2020.

I just want a clarification on the waiver process. Do the Government intend to make it the case that a local authority has to seek permission from a Minister in the Department to honour a legally decided case of discrimination and make the payment that a court has ordered? Is that the process that local authorities and other public bodies will have to follow?

That is a very valid question. In a whistleblower case, for example, there is no requirement on the local authority to submit a business case for approval. There are mandatory causes for exemption. However, where a discretionary exemption is sought, such as on a restructuring, it is necessary to submit a business case.

[Official Report, 21 September 2020, Third Delegated Legislation Committee , c. 7.]

Letter of correction from the Chief Secretary to the Treasury, the right hon. Member for North East Cambridgeshire (Steve Barclay):

An error has been identified in my response to the hon. Member for Bermondsey and Old Southwark (Neil Coyle).

The correct response should have been:

That is a very valid question. A whistleblower case, for example, does not require submission of a business case to HMT for approval. There are mandatory causes for exemption. However, where a discretionary exemption is sought, it is necessary to submit a business case to both the department and HMT.