The UK Treasury is reportedly offering officials in the finance ministry up to £100,000 to leave voluntarily amid a wider push to trim administrative spending across Whitehall by 16%.

The finance ministry, which employs about 2,100 staff, has already imposed a freeze on external recruitment for many non-essential roles, according to the Financial Times.

The voluntary exit packages are calculated as three weeks’ salary for each year of service, capped at 15 months of pay. The formula applies a maximum salary of £80,000, meaning that officials with more than 21 years in the department could receive up to £100,000.

HR should treat voluntary exit schemes as a clearly defined, time‑limited invitation to leave on improved terms, explained Zhanna Zhuravleva, resident chief people officer at consultancy People and Transformational HR.

Zhuravleva told HR magazine that when voluntary redundancy packages are being offered, HR professionals should spell out how the scheme will operate in practice, and advise on the things that employees should think about before deciding whether to take up the package or not. They should explain “what exactly is being offered, how is the financial package calculated, what the possible impacts  are on pensions, and which employment rights will people retain if they choose to leave in this way,” she said.

Jonathan Holden, partner and national head of employment at Forbes Solicitors, agreed, adding that HR should hold a meeting with all employees impacted, not just those at risk.

He explained to HR magazine: “This is your opportunity to explain the risk of redundancy and the reason why it may be necessary, as well as how many redundancies you’re considering and what happens next. The meeting can be held online if people are working remotely. However, HR teams should always encourage employees to ask questions, regardless of the format.”

Holden added that HR should inform employees in writing if they are ‘in scope and at risk’ of redundancy, adding that these employees should “also receive a communication confirming that they are eligible to apply for voluntary severance, and the outline of [the organisation’s] consultation plans.”

During voluntary exit schemes, managers will “require as much care as their teams,” Doug Betts, founder and director of consultancy Sure Betts HR Solutions, told HR magazine.He said: “HR can help by giving managers scripts (that still sound human), training and a clear process, so they don’t improvise their way into accidental cruelty.

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