Cabinet secretary receives record severance payment
Lord Wormald, the former Cabinet secretary, has been awarded a record severance payment of £859,496 following his departure from the role after 14 months, reports BritPanorama.
This payout is the largest ever given to a civil servant, exceeding earlier projections of around £500,000. His tenure, which lasted from December 2024 to February 2026, has drawn significant scrutiny, particularly in light of the scale of the exit settlement.
Prior to Lord Wormald, the record for severance payment was held by Sir Tom Scholar, who received £457,000 after being dismissed by former Prime Minister Liz Truss during her brief time in office in 2022.
Gareth Davies, head of the National Audit Office (NAO), has urged a review of the departure terms for senior civil servants like Lord Wormald, aiming to “reduce the incidence of discretionary extra-contractual elements of payments on departure from these roles.”
In a statement, Mr. Davies noted “considerable variation” in exit payments among permanent and Cabinet secretaries, indicating a need for more standardized practices.
Documented correspondence reveals that Cat Little, permanent secretary to the Cabinet Office, sought guidance from Prime Minister Sir Keir Starmer regarding the severance package. She expressed concerns about whether the payout represented good value for money, pointing out that it exceeded Wormald’s contractual entitlements.
However, she acknowledged the necessity of a high-level settlement due to the unique nature of Wormald’s role and its sudden conclusion. Ms. Little emphasized that while she could not definitively assess the value, the Prime Minister was positioned to consider broader public interests in concluding the matter without distracting from government operations.
Sir Keir ultimately indicated his satisfaction with the decision, despite the controversy surrounding the payment’s size.
Dame Antonia Romeo succeeded Lord Wormald as Cabinet Secretary in February. Following his resignation, Wormald was elevated to the peerage, taking the title Baron Wormald of Dulwich.
Labour’s handling of civil service departures has faced criticism, particularly from Shadow Cabinet Office minister Alex Burghart. He accused the government of wasteful spending at taxpayer expense, linking Wormald’s payout to a broader pattern of financial mismanagement.
A spokesperson from the Cabinet Office stated that they do not comment on human resources matters, but noted that the ministerial direction for Wormald’s payout is publicly recorded.
The significant severance package underscores ongoing debates regarding accountability and financial governance within UK public service, provoking thoughts about the future of civil service remuneration in an evolving political landscape.
