Scrap payouts for ministers who break rules or serve under a year, Lib Dems say

24 September 2023 , 21:30

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A severance payment of £18,860 was paid to 49-day PM Liz Truss, who trashed the economy with her disastrous mini-Budget (Image: PA)

Severance pay for disgraced ex-ministers and those who serve under 12 months should be scrapped under Liberal Democrat proposals.

Figures compiled by the party show that over half a million pounds in "taxpayer-funded handouts" was paid in severance during a year of Tory chaos. In the financial year 2022-23, £530,000 was paid out to former ministers, including £18,860 to 49-day PM Liz Truss, who trashed the economy with her disastrous mini-Budget.

Her former Chancellor Kwasi Kwarteng also pocketed over £16,000 after he was sacked after a little over a month in the role. Boris Johnson, who was ousted from No10 last summer after a series of scandals, was given a severance package of £18,860 when he left office in September 2022.

Former minister Chris Pincher, who resigned from Mr Johnson's government after being accused of drunkenly groping two men, also received a payment of almost £8,000. Ministers are entitled to receive severance payments worth a quarter of their salary on leaving office, provided they are not reappointed within three weeks.

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Some who received payments last year returned to the government within months. These include Defence Secretary Grant Shapps, who received £16,876 when Ms Truss replaced him as Transport Secretary at the beginning of September 2022, but returned as Home Secretary a month later. He is reported to have given half of his payment to charity.

In a speech at the Liberal Democrat conference today, MP Wendy Chamberlain will call for a major overhaul of severance pay for former ministers. The party's proposals will include preventing ministers who have resigned for breaking the ministerial code from claiming the taxpayer-funded handouts. It will also ensure payouts cannot be claimed unless a minister serves for a "reasonable period of time" and cannot be claimed if they are reappointed within a year.

Ms Chamberlain said: "It's an outrage that while families struggle to pay their bills, Liz Truss, Boris Johnson and other disgraced Conservative ministers have profited from their own failure." The Lib Dem added: "The cost of Conservative chaos is piling up for families across the country. The British public will never forgive this shambolic Conservative government. Conservative ministers crashed the economy and then were rewarded for it. It is time to change the rules over ministerial severance pay for good to end these revolving door payouts - enough is enough".

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Ashley Cowburn