£95k Exit Payment Cap no longer in place

In a surprising development on Friday 12th February 2021 , the government issued the Exit Payment Cap Directions 2021 which disapply parts of the Restriction of Public Sector Exit Payments Regulations 2020 in England with immediate effect.

As the Directions disapply regulation 3, the exit cap no longer applies in England with effect from 12 February 2021.

Updated guidance has been published at on the gov.uk website.

You should contact your former employer if you left between 4 November 2020 and 12 February 2021 and you think you were affected by the cap.

This means the £95k cap regulation is being treated as if it never applied therefore if you are leaving your employment through either redundancy or efficiency from 12 February 2021, your pension benefits will be paid unreduced, under regulation 30 (7), providing you are over age 55 at your date of leaving. This is the same position as before the Exit Cap was introduced.