Cabinet Office Homepage

Cabinet Office website

Main navigation

Joint announcement by Cabinet Office, FDA, Prospect, POA, GMB and Unite

Agreement reached on new Civil Service Compensation Scheme

The full details of the new terms for the Civil Service Compensation Scheme will published at 2pm on the Civil Service Pensions website.

We are pleased to announce that new terms for the Civil Service Compensation Scheme - which govern the amount of money paid to staff who are made redundant or who volunteer for severance/ early retirement - have been agreed between the Cabinet Office and FDA, Prospect, POA, GMB and Unite.

This agreement has been reached following 18 months of intense discussion and negotiation.   Following the latest negotiations, there was no consensus between the unions that make up the Council of Civil Service Unions (CCSU) and GMB and Unite who have also been party to the negotiations.  Therefore, five unions - the FDA, Prospect, POA, GMB and Unite - agreed to work together to arrive at an agreement, and the package has been balanced to offer additional protection to the lowest paid Civil Servants and to those closest to retirement. 

The Head of the Home Civil Service Sir Gus O’ Donnell said: 
“It’s been a difficult 18 months but we have achieved a deal that is fair and affordable. The existing terms have been in place since 1987 and the changes mean we have a package that’s right for today’s world, balancing our commitment to be a high quality employer with the need to ensure appropriate value for money for the taxpayer.
The five unions have issued the following joint statement:
“We recognise the requirement for reform and believe that the terms that have been reached are the best that might be negotiated. We have been particularly concerned that they should take further account of the position of the low paid and those close to retirement and are very pleased that they now do so. Under these circumstances, we support these proposals and recommend them to our respective members”.  

The new terms for the Civil Service compensation scheme will be laid before Parliament later this week.