Move to Scrap Cabinet "Generous Golden Goodbyes"
A cross-party move to scrap the deal whereby Cabinet Ministers can get 1/4 of their salary tax free every time they resign has been launched with the tabling of a motion in the House of Commons by John Hemming MP.
"The Government", he said, "is planning to cut redundancy payments made to people over 41 next year. In the mean time they have a scheme whereby a cabinet minister gets £18,000 tax free for resigning. This arises from an act of parliament passed in 1991. The end result for David Blunkett is that he got more cash for resigning than he would have got had he stayed in post."
"This situation is indefensible. Payments for loss of office should take into account how long the office has been held. If people are popping in and out of the revolving door that leads to the cabinet office then they should not get a generous golden goodbye every time they 'pass go'.
Mr Hemming has tabled an Early Day Motion with the support of Lib Dem and Conservative MPs that calls for this practise to end.
EDM 1047 REDUNDANCY PAYMENTS
That this House notes that the Government is considering cutting statutory redundancy payments to people aged over 41 years as a result of an EU directive; believes that it is more urgent that the Government reviews the redundancy payments due to Cabinet Ministers who could be entitled to a tax-free generous golden goodbye every three weeks; and calls on the Government to act to change the law so that the practice whereby it is possible for Cabinet Ministers to make more money by continually resigning than staying in post ceases, and equity between people within the Cabinet and in the country as a whole is introduced.