Former Cabinet Secretary Received Record Breaking £860,000 Payout

Lord Wormald received a record breaking severance package of £859,496 after being forced out of his role as Cabinet Secretary and head of the Civil Service. Cabinet Office accounts reveal that Wormald served in the position for 14 months, from December 2024 to February 2026, making him the shortest serving person to hold the post. The payout consists of £332,897 in contractual compensation and £526,598 in additional severance. This sum exceeds the previous record of £457,000 paid to Sir Tom Scholar after his dismissal by Liz Truss in 2022.

Cat Little, the permanent secretary to the Cabinet Office, sought a ministerial direction from Sir Keir Starmer to approve the payment. In her correspondence, Little expressed concerns regarding whether the amount represented value for money, noting it was greater than what Wormald was contractually entitled to. She stated the settlement was necessary due to the high profile nature of the role and the short notice of the departure. Sir Keir Starmer authorized the package on 16 February, stating that the public interest was met by bringing the matter to a conclusion to prevent distraction from government operations. The BBC reported that a majority of the payment was used to ensure Wormald could access the full value of his pension without reductions for early payment.

Following his departure, Wormald was appointed as a crossbench peer in the House of Lords. He was replaced as Cabinet Secretary by Dame Antonia Romeo. The FDA Union, which represents senior civil servants, criticized the government's handling of the departure and condemned anonymous briefings against Wormald. Gareth Davies, head of the National Audit Office, has urged the Cabinet Office to review departure terms for senior officials to reduce discretionary payments.

Political framing of the event varied by lean. Center left sources emphasized the record breaking nature of the payout and the internal government concerns over value for money. The center source provided more technical detail regarding pension contributions and the specific duties of the Cabinet Secretary. Conservative critics, cited across reports, framed the payout as an appalling waste of taxpayers money and a symptom of the government spending to protect itself.