(1) Regulations may make provision to secure that the total amount of exit payments made to a person in respect of a relevant public sector exit does not exceed £95,000.

(2) Where provision is made under subsection (1) it must also secure that if, in any period of 28 consecutive days, two or more relevant public sector exits occur in respect of the same person, the total amount of exit payments made to the person in respect of those exits does not exceed the amount provided for in subsection (1).

(3) An exit payment is in respect of a relevant public sector exit if it is made -

(a) to an employee of a prescribed public sector authority in consequence of the employee leaving employment, or

(b) to a holder of a prescribed public sector office in consequence of the office-holder leaving office.

(4) An exit payment is a payment of a prescribed description.

(5) The descriptions of payment which may be prescribed include -

(a) any payment on account of dismissal by reason of redundancy (read in accordance with section 139 of the Employment Rights Act 1996);

(b) any payment on voluntary exit;

(c) any payment to reduce or eliminate an actuarial reduction to a pension on early retirement or in respect of the cost to a pension scheme of such a reduction not being made;