NAHT criticises plans to cap severance payments

The National Association of Head Teachers (NAHT) has criticised government plans to cap public sector severance payments.

Following the consultation, the government has proposed to cap severance payments at £95,000, as well as cap redundancy payments at fifteen months salary.

Russell Hobby, general secretary of NAHT, claimed that there is ‘no evidence that the majority of public sector payments are more generous than the private sector’ and also questioned whether the plans would even result in savings.

He said: “The government's claim that the changes will save money is also questionable. With lower payments, fewer people will apply for voluntary redundancies, thereby leading to more compulsory redundancies, which are costlier.

“Plans to cap redundancy payments at fifteen months salary will also be counterproductive. This cap will see more people resort to employment tribunals, increasing costs. And at a time when we need to keep school leaders in the profession, is it right to put in place a cap than penalises those who remain in the profession for many years?”

Hobby also warned that the changes could act as a ‘further deterrent’ to leaders to take on the most challenging schools.

He added: “In a high stakes system, the government has two choices: to ensure the right incentives are in place so people take on career risks, or address the high stakes accountability system itself. Unfortunately the government has chosen to do neither.”