Redundancy plea for low-earners

The government has been urged not to apply plans to slash redundancy payments for civil servants to lower-paid workers.

Liberal Democrat MP John Leech said civil servants towards the bottom end of the pay scale are facing uncertainty over the future due to spending cuts, warning a cap on pay outs would be a "kick in the teeth" for them.

Cabinet Office Minister Francis Maude announced plans to bring forward a Bill to limit the cost of future payments earlier this month by capping all compulsory redundancy pay-offs at 12 months' pay and limiting amounts for voluntary severance to 15 months' salary

However he added that reform of the Civil Service Compensation Scheme would include "additional protection for low-paid workers".

Unions have threatened legal action, describing the plans as "unlawful and undeserved", but Mr Maude insisted the economic climate made cuts inevitable.

He also indicated the Coalition hopes to move towards regional pay bargaining across the civil service, in a move expected to be opposed by unions.

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