Lords ask about HS2 Ltd’s unauthorised redundancy payments

Both Lord Truscott and Lord Berkeley have asked questions about the unauthorised redundancy payments made by HS2 Ltd: they were given more or less the same answer.

Q Asked by Lord Truscott 19 July 2017
Department for Transport High Speed Two: Redundancy Pay (HL1082)
Her Majesty’s Government whether they plan to seek the return of £1.76 million in unauthorised redundancy payments to HS2 executives, as detailed in the National Audit Office’s report into its 2016–17 accounts.

Q Asked by Lord Berkeley 19 July 2017
Department for Transport High Speed Two: Redundancy Pay (HL1084)
Her Majesty’s Government what steps they plan to take to recover the unapproved redundancy payments of £1.76 million to HS2 staff as reported by the National Audit Office; and why HS2 ignored the instruction of the Department for Transport not to make enhanced redundancy payments.

A Answered by: Lord Callanan Answered on: 27 July 2017

Owing to a failure of internal process by HS2 Ltd an instruction from the Department for Transport not to enhance redundancy payments was not communicated down the organisation and as a result HS2 Ltd operated compulsory and voluntary redundancy schemes on enhanced terms without receiving authority from the Department for Transport or Her Majesty’s Treasury.

HS2 Ltd have a legal obligation to honour the redundancy payments made to individuals who were employed and will not be seeking their recovery.

HS2 Ltd will manage these payments within their existing budgets and as such the Department for Transport will not be providing any additional funds to cover these costs.

HS2 Ltd are putting in place controls to ensure that this does not happen again and are working to implement the recommendations of the NAO in full.