Questions over huge voluntary payouts by the States

Friday 31 July 2015

More than £1.6 million was paid out last year in “special payments” by the States in severance pay-offs, out-of-court settlements and ex-gratia payments.

Figures in last year’s accounts show the amount of payouts made by the States, including tax income that was written off and overpayment of benefits.

The States’ spending watchdog is now going to look into the figures – Public Accounts Committee vice-chairman Scott Wickenden said that they’d be asking for answers from the Treasury about the amounts being paid out in apparently discretionary payments.

“I’m going to bring this forward at the next Public Accounts Committee meeting,” said Deputy Wickenden.

“All spending of taxpayers’ money is part of our remit and we will be looking into this spending and asking for answers about why these decisions were reached.”

The figures in the accounts include:

• £1.6 million in uncollectable tax.
• £1.5 million in other claims abandoned.
• £749,000 in severance payments “above and beyond normal statutory and contractual requirements”.
• £622,000 in ex-gratia payments for which “there is no statutory cover or legal liability”.
• £306,000 in over-payment of benefits.
• £223,000 in “compensation payments” arising out of a court order or a legally binding arbitration award.