Call for action on ‘gagging orders’

The National Audit Office (NAO) condemned the lack of “transparency, consistency and accountability” around the compromise agreements – which can mean individuals pocket hundreds of thousands of pounds to leave jobs quietly.

The criticism came in a report by the public spending watchdog following widespread concern about the controversial deals.

There are claims that health service executives have been prevented from speaking out about poor care in hospitals.

Local councils are also reported to have distributed hundreds of millions as a result of compromise agreements, while the BBC has paid out £28m over the past eight years.

According to the NAO, the Treasury has signed off more than 1,000 special severance payments linked to compromise agreements since March 2010 – worth a total of around £28.4m. But the true figure is likely to be much higher as comprehensive records are not kept, and decisions are sometimes made by departments or through judicial mediation.

The watchdog found that 49 out of a sample of 50 cases included a confidentiality clause covering the existence and terms of the agreement.

The auditors stressed that there were legitimate reasons for such deals, including protecting intellectual property or resolving grievances.

None of those it looked at would have legally blocked an individual from whistleblowing.

“However, some people we spoke to who had been offered, or accepted, compromise agreements have felt gagged,” the report added.

The report found the Treasury had approved £11.1m in special severance payments by the Department of Health in the three years to March. The highest was £266,000.

NAO head Amyas Morse said: “The centre of government should get a grip on the use of compromise agreements in the public sector.”