Blog: UNISON delivers stunning blow on exit payments

Head of local government Jon Richards looks back at the latest Westminster U-turn – this time, after a legal challenge to its unfair plans.

Press release

16 February 2021

by Jon Richards

In a stunning setback for the Westminster government, it has had to abandon the law commonly known as the Exit Cap Regulations, which it only introduced on 4 November last year.

In the minds of the government, the Daily Mail and other right-wing cheerleaders, these regulations were introduced to cut big pay outs to the highest paid public servants when they were made redundant. They set a ‘cap’ to pay outs of £95,000, which sounds a lot.

Except that the way the government introduced the regulations meant that moderately paid staff could have been caught up by the law. In particular, it would have affected those in the local government pension scheme (LGPS) who were made redundant over the age of 55, as their benefits are payable immediately without any early retirement reduction.

Employers have to cover additional money for the early retirement (so-called ‘pension strain costs’) and when these are added on top off any redundancy payments, this can quickly mount up and exceed the £95,000 cap.

UNISON and other unions made a legal challenge that was due to be heard in a few weeks. However, just as we were finalising our evidence, the government backed down – sneaking out the news on a Friday evening, hoping to dampen down any press coverage! We spotted it and made sure general secretary Christina McAnea got the main coverage on the BBC and in the Guardian.

The government says that it has disapplied the regulations, with a view to revoking them completely, because it may have had ‘unintended consequences’.

It’s hard to believe that, after five years of detailed discussions, during which we have consistently pointed out the flaws, the government has only just seen the evident perverse incentives and consequences. What it did spot was that our cause was just and it was going to lose.

Sadly, some members have already gone under the new regulations and others were in the process of being made redundant. The regulations have been disapplied from 12 February, but not backdated to the 4 November – although the government has called on employers to act as though it had been. So unpicking the consequences for members affected will not be straightforward and we will need to keep our legal options open.

We can also expect that a further set of draft regulations, aimed at introducing the exit cap into the LGPS, with additionally proposed reductions in severance payments and reduced pensions for those over 55, and which UNISON also strongly opposed, are likely to be put on hold and redrafted.

It’s worth noting that these regulations would only have kicked in when someone was made redundant. And with thousands of jobs having already gone across public services over the last decade of austerity, one job going is still one too many.

So we savour our victory and call on the government to abandon any future plans it may have of reintroducing an amended set of regulations. The government would be wiser to pay tribute to the public sector workers keeping this country going rather than trying to take away their hard-earned pay and conditions.

Christina McAnea is the new general secretary of UNISON

Christina McAnea was elected as the new general secretary of UNISON on the 11th January 2021 – the first woman to head the UK’s largest union.

Christina replaces Dave Prentis, who is retiring after 20 years as general secretary. She takes up her post on 22 January.

Commenting on her election to the top job in UNISON, Christina McAnea said: “I’m so grateful to everyone who voted for me and for the trust placed in me. I become general secretary at the most challenging time in recent history – both for our country and our public services.

“Health, care, council, police, energy, school, college and university staff have worked throughout the pandemic, and it’s their skill and dedication that will see us out the other side.

“Their union will continue to speak up for them and do all it can to protect them in the difficult months ahead. Despite the risks, the immense pressures and their sheer exhaustion, the dedication and commitment of our key workers knows no end. I will not let this government, nor any future one, forget that.

“Supporting public service workers through the pandemic, securing an early pay rise for NHS staff and ensuring the government backs down on its plans for an ill-judged pay freeze will be my immediate priorities. Pushing for the funding and the political will to create a quality, affordable national care service, where staff are respected and paid fairly, comes close behind.”

Outgoing general secretary Dave Prentis said: “This is a historic day for our union, and I am delighted that Christina – a close friend and colleague for over 30 years – has today been elected as general secretary of our great union. As an experienced and respected negotiator and passionate campaigner, I can think of no better person to pass the baton to and take our union forward.

“I am so proud that our union of over a million women now has its very first woman leader. Christina will be a fantastic general secretary, as she presides over a growing union. I know she will continue to stand up for public service workers everywhere, holding employers and the government to account in pursuit of the strong, well-funded services the UK’s communities both need and deserve.”

Currently one of UNISON’s five assistant general secretaries, Christina has worked at UNISON since its formation in 1993, having previously joined local government union NALGO as women’s officer in the late 1980s.

Christina grew up in Drumchapel, a big council housing estate in Glasgow. She left school at 16 and worked in the civil service, the NHS and retail before going to university at the age of 22.

Having achieved a degree in English and history, Christina first worked as a housing officer for Glasgow City Council, before moving to the GMB, where she advised workers taking cases against their employers to industrial tribunals.

In her time at UNISON, Christina has become the union’s most senior negotiator, with a wide-ranging public services brief covering health, education, social care, local government and equalities.

She has held senior positions across the union, negotiating on behalf of members working in police forces, schools, universities and colleges, and the NHS.

While head of health at the union, Christina played a key negotiating role in the national dispute over pensions, when up to two million public sector workers took part in a day of action in late 2011. Three years later, she was the lead negotiator in the first national health strike in England in 25 years.

Christina is a member of the ACAS Council, sits on the government’s Covid-19 social care stakeholder group and was the driving force behind the creation last year of the future social care coalition, a cross-party alliance of more than 80 organisations and individuals.

Christina is married, has two adult children and lives in South London.

Dear Colleagues

Please see below UNISON president Margaret McKee’s petition which was launched in early December but which could do with wide circulation amongst all of your relevant networks as the response has been poor but my guess is that it might have dropped off the radar over the Christmas period and needs circulating again as a reminder. Many thanks for your help.

Two-child limit petition

UNISON past president Margaret McKee has launched a parliamentary petition on the two child limit. The petition reads:

Repeal the two child limit to Tax Credits and Universal Credit.

It is a glaring injustice. It breaks the link between the assessment of children’s needs and the support they receive. It will worsen child poverty.

Not all women have control over their reproductive destiny. Compulsory disclosure requirements will re-traumatise rape victims.

Many women will never disclose rape to anyone. Reasons include trauma, self-protection, shame, and fear for others - including their child. To force them to do so is cruel and risks danger. There is already evidence that it is influencing decisions on pregnancy termination.

How could it be paid for? The Government says the two child limit will save just over a £1bn in 2019/20. Since the policy was announced, OBR forecasts for spending on personal tax credits in 2019/20 have reduced by £2.2bn.

Please sign it here and encourage others to do so too.

Kind regards

Fiona Roberts

Regional Women's Officer | UNISON South East

2) The experiences and awareness of managers and supervisors in terms of supporting individuals who are going through the menopause.

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