A cap for public service payouts

The Telegraph reports:

Controversial six figure “golden goodbyes” for public sector workers will be banned if the Conservatives win the general election in four months’ time.

The commitment, which will be in the party’s General Election manifesto in May, will cap pay-offs at £95,000 each in the National Health Service, the civil service, council staff and even the BBC.

The move comes in the wake of rows after large taxpayer-funded payments to officials in the NHS and Civil Service, as well as the BBC, have emerged.

Unveiling the plans, Priti Patel, a Treasury Minister, said that a future Tory Government wanted to “bring some fairness back to the system”.

She said: “It’s not right that hard working taxpayers, many on low salaries, have to fund huge pay-outs when well-paid people get made redundant.

“So we’re going to do something that’s long overdue and that will bring some fairness back to the system – we’re going to introduce a new public sector redundancy pay cap.”

That’s an excellent idea. National should do the same in New Zealand.

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