School leaders ‘will be penalised’ by new cap on exit payments

TES is reporting that the government has capped exit packages for school headteachers at £95000 which could deter them from taking on challenging schools.

Long-serving school leaders could be deterred from taking on the most challenging schools following the government’s changes to the rules around exit packages, a union leader has warned. The government has decided to cap all exit payments for the large majority of public sector workers at £95,000 – including teachers – to stop six-figure pay-outs.

The changes, which will come into force next summer, include a ceiling of 15 months on the maximum period of salary that can be paid as a redundancy payment to all pubic sector workers.

But Russell Hobby, general secretary of the NAHT headteachers’ union, has questioned whether it is right to “penalise” experienced school leaders when retention in the profession remains a significant issue.

Mr Hobby 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 15 months’ salary will also be counterproductive. This cap will see more people resort to employment tribunals, increasing costs.”

More at: School leaders ‘will be penalised’ by new cap on exit payments

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