By Claire West

In response to the Second Reading of the Superannuation Bill IoD Director General Miles Templeman said:

'Reducing civil service headcount is painful in both human and economic terms but there is no alternative. Legislation to cap redundancy payouts was imperative for 2 reasons. First, in order to bring the public sector more in line with the private sector. Second to avoid the ridiculous situation whereby the budget deficit sharply increased as a result of downsizing the public sector.

At the end of the day, even with the new cap, public sector redundancy terms remain generous.