Sir Jacob Rees-Mogg, the former minister and outspoken Conservative MP, has been labeled a “hypocrite” for accepting nearly £17,000 in severance pay for just seven weeks of work during his brief tenure as business secretary. This move has drawn criticism as Rees-Mogg had previously advocated for cutting redundancy pay for civil servants.
Under the current rules, ministers are entitled to a lump sum equivalent to a quarter of their yearly salary if they leave office, are below 65 years of age, and are not reappointed within three weeks. In Rees-Mogg’s case, former Prime Minister Liz Truss’s resignation led to his departure, making him eligible for the severance payment.
Government figures reveal that Rees-Mogg received a payment of £16,800 after leaving the Business Department, equivalent to three months of ministerial wages. This is on top of his £86,584 salary as an MP and his earnings of £750 per hour as a presenter on GB News.
However, Rees-Mogg’s acceptance of the severance pay has raised eyebrows due to his previous role as government efficiency minister, during which he advocated for reducing redundancy pay for civil servants from four weeks’ salary per year of service to three. A consultancy document produced under his leadership suggested that such changes would result in significant cost savings.
Chairman Greg Hands, another senior Tory, also benefited from severance pay. He received a £7,920 payout after being sacked from the Business Department in September 2022, only to be reappointed as a minister four weeks later.
Severance pay for ministers is becoming an increasingly costly burden on taxpayers. During the chaotic government tenure of Boris Johnson and Liz Truss, former ministers received a total of £455,000 in severance pay. This includes former prime ministers who received £18,660 each upon resigning, as well as Kwasi Kwarteng, who was given £16,876 when he stepped down as chancellor after less than six weeks in the role.
While ministers can choose not to accept severance payments, some returned the funds when they were reappointed. For example, Rishi Sunak repaid the £16,876 he received when he resigned as chancellor.
