Managing Early Departures in Central Government

Managing Early Departures in Central Government

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This report finds that central government departments have spent around Ap600 million gross on the early departures of 17, 800 staff in the year from December 2010. These costs are around 45 per cent lower than they would have been under the previous Scheme. After meeting the initial costs, departments will save an estimated Ap400m a year on the paybill. The time it takes departments to start seeing these savings depends on how quickly they can eliminate headcount-related costs, such as on IT and property. The net present value of the early departures to the taxpayer will be between Ap750 and Ap1, 400 million over the spending review period, depending on the ability of departments to eliminate costs. This figure will also be affected by whether those leaving find comparable work and pay tax, or claim benefits. Of those departments that are reducing staff numbers, the proportion of staff released ranges from less than 1 per cent at the Department of Energy and Climate Change to around 16 per cent at the Department for Communities and Local Government. Departments used large-scale open voluntary exit schemes to release staff as quickly as possible, though this meant departments could not predict accurately which staff would leave. Older, more senior staff are leaving in the first tranches. This is partly because of deliberate restructuring, but also because those staff who have worked in the civil service for longer, or who are over 50, gain more financially from taking voluntary exit or voluntary redundancy.Cabinet Office Approves schemes proposed by departments, and monitors the civil service workforce at high level. ... H\/I Treasury Departments agreed settlements with the Treasury based on pressures and reforms in their areas. ... able to separate out how many relate to central government. l\/y CSP Administrator of the Principal Civil Service Pension Scheme and Civil Service Compensation Scheme.

Title:Managing Early Departures in Central Government
Author:Great Britain: National Audit Office
Publisher:The Stationery Office - 2012-03-01


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