The former head of the civil service Chris Wormald received a record payout, in the region of £500,000, when he was forced out of the top job in Whitehall by Keir Starmer, it has emerged.
The unprecedented payment was made after Wormald served just 14 months in the role of cabinet secretary before being replaced by Antonia Romeo.
There had been speculation about the scale of the payout, first reported by the FT, after Cat Little, the permanent secretary of the Cabinet Office, had to request a ministerial direction from Starmer in February to override value-for-money concerns before she could approve it.
In her letter to the prime minister at the time, she wrote: “In respect of value for money, I have consulted civil service HR and legal advisers and have had due regard to managing public money and the consideration of Sir Chris Wormald’s employment rights in the circumstances. The proposed award is greater than what Sir Chris Wormald would be contractually entitled to.
“However, I am informed that a settlement of this level is necessary given that this is a departure from a high profile, unique role that has been agreed at very short notice. Given the complexity of the legal position and the information to be considered at this time, it is not possible for me to conclude to the level required whether the proposed settlement amount represents value for money or not.
“However, you as prime minister can take into account wider considerations, in particular the public interest in bringing this matter to a conclusion and the prevention of distraction from the effective operation of government.”
The previous highest settlement was given to Tom Scholar, who was forced out as permanent secretary of the Treasury by Liz Truss as one of her first acts during her brief tenure as prime minister. He was given £457,000, including severance pay and compensation in lieu of notice and leave.
Wormald is to become a crossbench peer after he was nominated by Starmer on leaving office.
The Cabinet Office said: “We don’t comment on individual HR matters.”
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Whitehall sources said £500,000 was not the exact amount given to Wormald but that more details about the level of the settlement would be published in the department’s annual report and accounts.
