Government issues Directions disapplying the exit cap in England with immediate effect

On 12 February, the government issued the Exit Payment Cap Directions 2021 which disapply parts of the exit cap regulations with immediate effect. The Directions do not apply to exit payments made by a devolved Welsh authority; however, we understand the Welsh government will issue a similar direction shortly. As the Directions disapply regulation 3, the exit cap no longer applies in England with effect from 12 February 2021. HM Treasury has issued guidance on the Directions. More information will follow.