Thousands of States workers offered a payoff to quit

Monday 18 May 2015

Every one of the 8,280 people working for the States is going to be offered a payout to leave their jobs under a cost-cutting scheme opening in a fortnight.

The voluntary redundancy scheme is part of the Council of Ministers’ plan to fill the £130 million deficit in public finances that is expected to open up by 2019 – they say that they want to save £60 million from the cost of employing States workers, which accounts for half of all public spending.

Last week, Treasury Minister Alan Maclean said that there would be a significant “upfront cost” in making the payouts, but that the long-term savings would be far greater.

Under the existing rules, cash payouts of up to 18 months’ salary will be offered to those who take up the offer of voluntary redundancy.

But when the scheme opens up on 1 June, not all applicants will be automatically accepted – only those staff whose jobs are deemed surplus to requirements will be allowed to take a payout and go.

Chief Minister Ian Gorst says that the work will tie in with the public sector reform programme to make the States more efficient and more effective.

He said: “This voluntary redundancy programme is the first stage in a comprehensive delayering of management and administration. Each application will be considered carefully and will only be accepted if it supports the redesign of our services and our continuing drive to streamline the organisation and reduce costs.

“Our reform programme is intended to make services more efficient and effective and applications for voluntary redundancy need to be considered in that context, to ensure that we achieve the best long term result for the public sector.

“We will also be managing job vacancies. Around 550 employees leave the public sector every year, either through retirement or changing jobs. We will only be filling these vacant posts where absolutely necessary.”