Home Office: Redundancy Pay

(asked on 23rd February 2026) - View Source

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, pursuant to the answer of 8 September 2025 to Question 73331 on Home Office: Redundancy Pay, whether severance payments made to departing special advisers are subject to the £30,000 tax-free allowance.


Answered by
Satvir Kaur Portrait
Satvir Kaur
Parliamentary Secretary (Cabinet Office)
This question was answered on 3rd March 2026

Under HMRC rules, severance payments for special advisers are taxable as earnings because they are a contractual entitlement.

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