Lord Wormald receives record payout amid cabinet reshuffle
Newly published official accounts reveal that Lord Wormald, a senior civil servant, received a record compensation payout approaching £860,000 after being forced from his post during Sir Keir Starmer’s government, reports BritPanorama.
Specifically, Lord Wormald was awarded an exit settlement of £859,496 for his service as Cabinet Secretary between December 2024 and February 2026, as outlined in the Cabinet Office’s annual financial report. This amount is the largest severance package ever granted to a civil servant, significantly exceeding previous estimates of around £500,000.
The former record was held by Sir Tom Scholar, the former Treasury chief, who received £457,000 following his dismissal by Liz Truss in 2022. The stark increase in Lord Wormald’s compensation has raised eyebrows among observers and officials.
Gareth Davies, head of the National Audit Office (NAO), has called for a review of departure terms for senior civil servants. He indicated that the Cabinet Office should “reduce the incidence of discretionary extra-contractual elements of payments on departure from these roles” due to observed variations in exit payment sizes across different senior officials.
Earlier communication disclosed that Cat Little, the permanent secretary to the Cabinet Office, requested a ministerial direction from Sir Keir Starmer to approve the severance payment to Lord Wormald. In a letter dated February, Ms Little expressed concerns about whether the payout represented value for money, indicating it exceeded contractual entitlements.
She stated: “However, I am informed that a settlement of this level is necessary given that this is a departure from a high profile, unique role that has been agreed at very short notice.” She emphasized that it was ultimately within the Prime Minister’s remit to weigh the public interest and ensure effective government operation.
In response to Ms Little’s recommendation, Sir Keir expressed satisfaction that the arrangement met public interest despite the controversy surrounding the departure payment.
In February, Dame Antonia Romeo succeeded Lord Wormald as Cabinet Secretary. His elevation to the peerage came shortly after his departure from government, when he was made Baron Wormald of Dulwich.
Shadow Cabinet Office minister Alex Burghart criticized the payout, describing it as an “appalling waste of taxpayers’ money” by the Labour government. “This payout is another one of many civil servants and advisers fired by Keir Starmer as he tried to save his own skin,” he asserted.
A Cabinet Office spokesperson responded by noting that “We do not comment on HR matters,” while confirming that the payment to Lord Wormald was made following the appropriate ministerial direction. Their correspondence remains publicly accessible.
The significant figure involved in Lord Wormald’s severance package highlights ongoing discussions within government regarding civil service accountability and the financial implications of leadership transitions.
