Thousands of former civil servants and public-sector employees received exit packages totalling £336 million in the 2025/26 financial year, an audit of Government accounts has found.
The payments went to about 6,000 staff who left public bodies, equating to an average settlement of roughly £56,000 per person.
The figures come as ministers pursue a programme of cuts and restructuring across Whitehall, with departments under pressure to reduce administrative spending while reshaping their workforces.
Exit packages issued as Government cuts costs
The Government’s 2025 Spending Review set aside £150 million to support employee exit schemes. It also outlined plans to reduce departmental administration budgets by 11 per cent in real terms by 2028/29, rising to 16 per cent by 2029/30.
Exit packages can include redundancy payments, early-retirement costs and other agreed departure arrangements. The scale of the bill means the taxpayer-funded schemes are likely to face renewed scrutiny as ministers seek savings across the public sector.
The accounts audit was conducted by the Daily Mail, which reported that the number of former staff receiving payments and the overall cost had risen sharply compared with the previous year.
