Pay-offs during chaotic Truss and Johnson era cost taxpayer more than £3 million

The revolving door of ministers, officials and special advisers who left government under Liz Truss and Boris Johnson cost the taxpayer more than £3 million in severance payoffs.

The controversial sacking of former Treasury chief Sir Tom Scholar, who was axed by Ms Truss ahead of her disastrous mini Budget, cost the government £457,000 in total.

Ms Truss and Mr Johnson were given nearly £20,000 each, despite the former being in office for just 49 days.

Mr Johnson’s deputy chief whip Chris Pincher, who quit after allegations he drunkenly groped two men, was also given £7,920.

Meanwhile, severance payments to ministers' teams of special advisers reached £2.9 million amid the political upheaval in Westminster, documents released as parliament shut for the summer show.

Mr Johnson quit after more than 50 members of his government resigned over a series of scandals including Partygate and the handling of the allegations against Mr Pincher.

His successor Ms Truss’s tenure was cut short last October after a wave of unfunded tax cuts crashed the pound, sent mortgage rates spiralling and shattered Britain’s reputation for financial stability.

In total, at least 45 whips, ministers and officials were handed severance payouts having been sacked or resigned in the year to the end of March. Of those given severance payouts, only Rishi Sunak - given £16,876 after quitting as chancellor in July 2022 - handed the entire sum back to the Treasury.

Much of the turnover happened toward the end of Mr Johnson’s stint as prime minister or during Ms Truss’s brief period in office, which ended in disaster last October.

As well as Ms Truss and Mr Johnson, former chancellor Kwasi Kwarteng was given £16,876 after being fired amid the economic fallout from his and Ms Truss’s tax cuts.

And a slew of MPs who were promoted to government posts, including Boris loyalists Lia Nici and Mark Jenkinson, were given £4,479 each when they were sacked.

Labour said it shows a “staggering lack of shame” for former ministers including Mr Johnson, Ms Truss and Mr Kwarteng to walk away with “enormous payoffs”.

Deputy leader Angela Rayner said: “After the mess the Tories have left our country in, they should be hanging their heads in embarrassment, not walking away with an enormous payoff.

“At a time when people up and down the country are struggling to pay their mortgages and put food on the table, it shows a staggering lack of shame for them to accept this money, but is exactly what we’ve come to expect from a bunch of Tories who only care about themselves.”

The Liberal Democrats said the payments are a “slap in the face” for households struggling under soaring mortgage bills.

Deputy leader Daisy Cooper said: “It is frankly insulting that whilst people struggle with the cost-of-living crisis, those responsible for their financial hardship are being showered with tens of thousands of pounds of tax-payers cash.

“If any of these disgraced former Conservative Ministers had a shred of integrity left they would hand these pay-outs back.”

Sir Tom was sacked as permanent secretary at the Treasury within days of Ms Truss becoming prime minister as part of her crusade against “Treasury orthodoxy” – freeing her up to enact the ill-fated policies.

The Treasury’s annual report reveals Sir Tom received a severance payment of £335,000 for loss of office, as well as £122,000 in annual leave adjustments and compensation in lieu of notice.

His sacking, which came just as Mr Kwarteng took over as chancellor, prompted criticism and questions about the government’s economic competence ahead of her budget.

Economists and former civil servants have subsequently said his dismissal contributed to the market’s negative reaction to Mr Kwarteng’s mini-budget – which ultimately sent borrowing costs spiralling, tanked the value of sterling, and signalled the end of Ms Truss’s premiership.

Asked about Mr Scholar’s payoff, a Treasury spokesman said: “This payment is a contractual amount resulting from the Civil Service Compensation Scheme – the payment is based on length of service and includes pension payments.”

The spokesman added: “There are long-standing rules in place to determine what ministers are entitled to receive as severance pay. Under those rules, it is for ministers to decide whether they wish to accept it.”

Mr Pincher was the Tory government’s deputy chief whip last summer when he was accused of drunkenly groping the men at a Carlton Club event last June.

The Commons Standards Committee recommended Mr Pincher be suspended from the House for eight weeks after upholding the allegations and finding he had damaged the reputation of the Commons.

Ministers are entitled to a “loss-of-office” payment amounting to a quarter of their ministerial salary if they leave their role and are not appointed to a new one within three weeks, providing they are aged under 65.

The amounts paid out are listed in each department’s annual report. Not all the reports have been published yet, but those released so far show ministerial severance payments amounted to at least £319,287 last year.

Ministers do not have to take the severance payment and can choose to repay it if appointed to another role after three weeks.