A Cupboard minister was not entitled to £470,000 severance pay after two days on the job

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A submit on Fb first printed on 8 July reads: “MICHELLE DONELAN The 2 day schooling minister…. £470,000 severance pay…. JUSTIFY THAT!” and has over 350 shares.

It’s not the case that Michelle Donelan MP is entitled to or will probably be getting £470,000 in severance pay. 

Sure ministers and a few others in authorities are entitled to severance pay equal to 1 / 4 of their wage, and for cupboard ministers like her that quantity is slightly below £17,000. The full quantity of severance pay that ministers who resigned in early July, in addition to the Prime Minister when he steps down, are entitled to is way lower than £470,000. 

How a lot are resigning ministers due?

Michelle Donelan MP was Secretary of State for Schooling (which is a Cupboard place) for 2 days this yr, from 5 July to 7 July.

As we’ve written earlier than, ministers and sure different individuals holding numerous eligible paid positions in authorities and the opposition are entitled to a quarter of their wage in severance pay after they depart the job. This doesn’t embrace parliamentary non-public secretaries or commerce envoys, who’re unpaid. And it solely applies to people who find themselves below the age of 65, and who depart the job for any cause aside from their demise.

It doesn’t apply to individuals who maintain one of many eligible positions once more inside three weeks (or inside six weeks following the dissolution of Parliament for an election). 

Nonetheless, as three weeks have handed since she resigned and Ms Donelan has not held one other eligible place, she is eligible to obtain the severance pay. For her, this is able to be 1 / 4 of £67,505, so £16,876.25.

Nonetheless, Ms Donelan has stated she is going to not be taking the cash. She stated on 7 July that she would as a substitute “be donating it in full to a neighborhood charity”.

The place does the £470,000 determine come from?

The Fb submit is a screenshot of a tweet with over 3,000 retweets. In a subsequent tweet from the identical account, the unique poster claimed as a substitute that £470,000 was the whole quantity, saying: “LEST WE FORGET: Each minister who resigns is entitled to severance pay totalling £470,000…. Even these in submit for lower than two full days… (Michelle Donelan).” Nonetheless, that’s nonetheless false.

It’s not clear the place this actual determine got here from, however across the time of mass authorities resignations in early July, the Liberal Democrats calculated that Boris Johnson and the ministers who resigned earlier than him can be entitled to a complete of £423,995 in severance pay.

That determine was considerably too excessive, because it included a number of parliamentary non-public secretaries, who’re unpaid, so don’t get severance pay after they depart. The Liberal Democrats then launched one other evaluation saying the whole value can be round £245,000. As we wrote final month, that determine seems to be about proper.

Picture courtesy of Adi Ulici



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