Exit payments to departing civil servants across Whitehall departments and publicly funded agencies more than doubled last year, surpassing £300 million amid a significant increase in public sector headcounts, according to an audit of government accounts.

In the 2025-2026 fiscal year, approximately 6,000 former employees received severance packages totaling £336 million, up from £153 million paid out to 3,353 individuals the previous year. Some exit payments were notably large, including one estimated between £300,000 and £350,000 awarded to a senior official within the Department for Environment, Food and Rural Affairs. Additionally, hundreds of recipients received packages exceeding £100,000, with 25 exceeding £200,000.

This surge in exit payouts coincides with a marked growth in Whitehall staffing. Analysis shows the civil service workforce expanded by roughly one-third between 2016 and 2026—an increase of about 139,485 roles—reaching a total headcount of 557,825. This growth rate is more than three times higher than the 9.4 percent increase seen across the broader public sector during the same period. The increased personnel numbers have driven up the annual civil service wage bill to around £22.5 billion.

The spike in severance payments follows recent public scrutiny over a record exit package awarded to former Cabinet Secretary Sir Chris Wormald, who received nearly £500,000 after serving just 14 months before his removal in February by former Prime Minister Sir Keir Starmer. Collectively, severance expenses now far exceed those seen a decade ago, when exit payouts typically totaled over £250 million annually.

Sources within Whitehall described these "golden goodbye" payments as part of a strategic effort to reduce civil service numbers and claimed that allocating £300 million in exit packages was planned as part of the 2025 Spring Statement. However, these payments have drawn criticism amid concerns over rising tax burdens, which are currently at their highest level in nearly 80 years.

Conservative MP Greg Smith condemned the payouts as insensitive, stating that they are "a slap in the face" to taxpayers facing increased living costs. Similarly, William Yarwood of the TaxPayers’ Alliance called for ministers to impose stricter limits on severance payments and improve oversight.

A government spokesperson defended the strategy, stating that the upfront expense of severance payments is necessary to "bring the number of back-office civil servants down" and to redirect resources toward frontline services, which will ultimately deliver long-term savings for taxpayers.