ASCL is opposed to the proposals in the consultation. In ASCL’s view, it is completely unreasonable to include pension ‘strain’ costs as netted off against all exit, regardless of the value of any severance payment or arbitrary trigger for referral. A significant number of ASCL members working in the academy sector, affected by this proposal, are members of the Local Government Pension Scheme (LGPS). Strain costs currently apply to any such members facing redundancy over the age of 55 as mandatory on the part of the employer.

ASCL was strongly opposed to the £95k Exit Cap as introduced in 2020. ASCL was pleased (but not surprised) when it was scrapped shortly after in February 2021, such strain costs being a statutory legislative right for our members in LGPS. These proposals seek to circumvent the statutory right by effectively legislating for a veto to processes that may give rise to it. Moreover, the linking with any special severance payment depresses this discretion due to the compulsory aspect of strain cost in referring a proposal to the Secretary of State and Treasury.

Full response to consultation