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Severance pay for Commons ministers was introduced in 1991, in section 4 of the Ministerial and other Pensions and Salaries Act 1991.

Generally, a lump sum, equivalent of one quarter of the annual ministerial salary, is payable when a minister stops holding office.

On 3 November 2022, the Government it had “no current plans” to amend the 1991 Act.

Departing ministers who are over 65 and anyone who is reappointed as a minister within three weeks do not qualify for severance pay. And ministers are able to waive payments.

A Cabinet Minister, whose ministerial salary is £67,505 would be entitled to severance pay of £16,876.


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