Written Question·Cabinet Office·UIN 114873

Home Office: Redundancy Pay

Tabled: 23 February 2026
Answered: 3 March 2026

Question

Mike Wood

Conservative — Kingswinford and South Staffordshire

To ask the Minister for the Cabinet Office, pursuant to the answer of 8 September 2025 to Question 73331 on Home Office: Redundancy Pay, whether severance payments made to departing special advisers are subject to the £30,000 tax-free allowance.

Answer

Satvir Kaur
Under HMRC rules, severance payments for special advisers are taxable as earnings because they are a contractual entitlement.