Ministers slam city council as bosses pocket £670k payoffs

A YORKSHIRE council has come under fire from the Government after spending more than £670,000 paying off three managers – including one settlement of nearly £340,000.

Sheffield City Council paid three assistant chief executives almost 650,00 compensation for loss of office, with a further 21,722 awarded for pension contributions.

The biggest payoff went to Liz Bashforth, the assistant chief executive, legal and governance, who was paid 331,867 compensation – nearly four times her annual salary of 89,831 – and this was topped up with a 6,237 contribution to the pension pot.

Hide Ad
Hide Ad

Ms Bashforth went on to take up an interim post as a consultant at Wakefield Council following the retirement of its head of legal and democratic services, and she earned 60,900 between July 2009 and February this year before a permanent replacement was found.

Sheffield City Council was slammed by the Government which said six-figure payoffs for staff "couldn't be justified" during a public sector pay freeze.

The coalition wants to bring public sector redundancy payouts closer in line to those in the private sector, where they are typically a maximum of one year and statutory redundancy deals are capped at 32 weeks pay.

Minister for Local Government Bob Neill said: "There is growing public concern about the massive payoffs being given to town hall chief executives and senior staff.

Hide Ad
Hide Ad

"Six-figure payoffs aren't justifiable when local government workers are in the middle of a pay freeze.

"The problems stem from the contractual terms drawn up behind closed doors – new checks and balances are needed to control such bloated senior pay – with full transparency on senior pay packages and all senior pay packets to be vetted and voted on by councillors in the open."

The figures, available in the council's published accounts, revealed the second-biggest pay off was the assistant chief executive, organisational development and communications, who left in September last year and was awarded more than 200,000 in compensation and pension cash. They were paid 99,154 a year.

The assistant chief executive, policy and performance, was awarded compensation and pension benefits of 125,000 after leaving the 77,000 a year job last August.

Hide Ad
Hide Ad

Ms Bashforth was one of the council's longest serving officers, who left after 28 years there.

When the departure was announced in May last year, chief executive John Mothersole said the move was part of a "wider restructuring of the council" and described her as "a great servant".

He said: "Her loss of experience will be a significant issue for the council, but her departure will enable the next generation to come forward.

"I would like to put on record my deep recognition of her service and thanks for her support."

Hide Ad
Hide Ad

Ms Bashforth was in charge of the council's legal department which has a wide-ranging remit including elections, licensing, emergency planning, the register office and Freedom of Information requests.

A Sheffield City Council spokesman said last night: "Whilst we cannot comment on individual cases, the amounts detailed in the accounts have been reached based upon a number of factors including years of service and seniority within local government and according to contractual obligations.

"Compensation for loss of office can also include pension fund costs which are not paid to individuals but to South Yorkshire Pensions Authority.

"The council has previously stated that it is committed to reducing senior managers by 10 per cent which has now been achieved."

Hide Ad
Hide Ad

Last month the council refused to rule out more job losses after plans for 6.5m of cuts in the 2010/2011 budget were approved. Authority officials have to find the savings after the Government made significant cuts to its grant.