Chancellor has today announced £150
million to fund exit schemes for government employees to reduce
long-term staffing costs and focus on delivering for the
public.
The funding will enable departments
to reduce staffing numbers over the next two years, creating
significant savings on staff employment costs.
Departments will need to bid for
the money and match the £150 million from central government -
announced at today's Spring Statement - from their own budgets,
bringing the total funding to £300 million.
Today's announcement follows plans unveiled last week to reduce
administration budgets by 15% by 2030 - saving £2.2 billion as
the Government prioritises frontline delivery.
While the Government is not setting
any headcount targets, which in the past led to money being spent
on expensive outside consultants, the scheme will support the
Civil Service to become more productive, focused and
specialised.
Some voluntary exit schemes have already been launched by
departments, including the Cabinet Office which is undergoing a
restructure to focus on its core role delivering on the Plan for
Change.
The funding is part of a £3.25bn Transformation Fund announced in
the Spring Statement today, to deliver public service reform and
create a more efficient and productive state.
Speaking in the Commons today, the Chancellor, , said:
“Today, I build on that work by bringing forward £3.25bn of
investment to deliver the reforms that our public services need
through a new Transformation Fund.
“That is money brought forward now
to bring down the costs of running government by the end of the
forecast period by making public services more efficient, more
productive and more focused on the user.
“I can confirm today the first allocations from this fund
including funding for Voluntary Exit Schemes to reduce the size
of the Civil Service.”
Chancellor of the Duchy of Lancaster, said:
“We have been clear that to deliver
our Plan for Change we need a more productive and agile state,
which can rise to the challenges we face.
“This fund will enable us to build a Civil Service workforce fit
for the future as we streamline costs and ensure every pound of
taxpayer money is focused on delivering for working people.”
Administrative budgets fund parts of government that are not
directly involved in frontline delivery. This means areas
targeted for savings include functions like HR, financial and
procurement management, policy advice, communications and office
management.
Savings from the 15% target will ensure that departments are
prioritising frontline delivery, and focusing resources into the
services that matter to the public. The Plan for Change will
deliver more teachers in classrooms, extra hospital appointments
and police back on the beat.
The Government has also pledged to
double the number of civil servants working in data and digital
roles, so they make up 10% of the civil service workforce within
five years.
£153 million of central funding
from the Transformation Fund announced in the Spring Statement
has been allocated for government employee exit schemes (£76.5
million for 2025-26 and £76.5 million for 2026-27). Departments
will be expected to match fund the cash, meaning a total pot of
£306 million.
