Colleges are waiting months longer than expected for government approval on severance payments to outgoing staff, in the latest red tape headache imposed on leaders since reclassification.
Following the Office for National Statistics decision in November 2022 to class colleges as public instead of private sector bodies, the government outlined that colleges must apply for approval for special severance payments to departing employees.
Approvals must be sought for payments of £50,000 or more, where they are equal to three months’ salary or more, an exit package of £100,000 or more, or where the employee earns over £150,000.
The application must go to the Department for Education, who claim the process should take just a few weeks to confirm or deny approval. The process can however take longer if it decides to consult with the Treasury department or requires further information about the payment.
