Sir Chris Wormald, who was dismissed from his post as cabinet secretary after just 14 months, received a record-breaking exit payment approaching £860,000, according to the Cabinet Office’s annual accounts published on Monday. This sum, including £526,598 paid in addition to contractual obligations totalling £332,897, represents the largest payout in civil service history and is significantly higher than the customary £260,000 typically awarded to departing senior civil servants.

The size of the payout has prompted criticism, highlighting concerns over a perceived culture of entitlement within Whitehall and raising questions about accountability for public funds. Wormald’s supporters contend that he was unfairly made a scapegoat and point to reports that his impending dismissal became public months before it was formally communicated to him.

Responsibility for the payout largely falls on Sir Keir Starmer, who appointed Wormald to the senior civil service role and later approved the substantial payment. Starmer personally authorized the compensation after internal concerns about its justification. Cat Little, the Cabinet Office’s permanent secretary at the time, sought a formal ministerial direction to approve the payment, to which Starmer responded that he was satisfied the public interest was served and instructed her to proceed.

The decision to award Wormald a peerage after his departure has also been questioned. While it is customary in some cases for senior civil servants to receive such honours, there is no formal requirement, and critics view the nomination as a reward despite the circumstances of Wormald’s exit. This move has prompted broader debate about the makeup and appointment practices of the House of Lords.

This episode follows previous high-profile payouts, including the £457,000 awarded to Sir Tom Scholar when he was removed as Treasury permanent secretary in 2022 under Prime Minister Liz Truss. Another case expected to attract scrutiny is that of Sir Olly Robbins, former senior official at the Foreign Office, who was dismissed amid the Lord Mandelson vetting controversy.

The National Audit Office has called for a comprehensive review of the employment terms for senior civil servants, particularly concerning the use of discretionary payments made upon departure. Observers argue that the generous severance packages in place may reduce incentives for performance and allow politicians to minimize political fallout at significant public expense.

The controversy surrounding Wormald’s payout has reignited calls for reform, with many emphasizing the need for greater transparency and tighter oversight of senior civil service compensation to safeguard public funds and maintain trust in government institutions.