Louise Haigh will get severance pay for her time as transport secretary – unless she decides to opt out, Downing Street has said.
Ms Haigh resigned on Friday after it emerged she had pleaded guilty to a criminal offence related to incorrectly telling police that a work mobile phone was stolen in 2013.
Asked if she was entitled to ministerial severance pay, the Prime Minister’s official spokesman referred to rules set out in the Ministerial and Other Pensions and Salaries Act 1991.
Ministers under the age of 65 are entitled to a loss-of-office payment amounting to a quarter of their annual ministerial salary if they are not appointed to a new role within three weeks.
Asked if Sir Keir Starmer would encourage Ms Haigh to voluntarily forego the payment, the spokesman said: “He’d leave that up to her.”
Labour in opposition had called to reform the rules and presented a Bill aiming to change the system after it emerged nearly £1 million was spent during the political chaos of 2022.
Former prime ministers Boris Johnson and Liz Truss both received £18,660 after resigning, while Kwasi Kwarteng was given £16,876 when he was forced out as chancellor after less than six weeks in the job, according to Government figures.
Labour wanted to overhaul the rules to ensure departing ministers get a quarter of their actual earnings over the previous year.
Ms Haigh was a Cabinet minister for just under six months.
Heidi Alexander was appointed to replace Ms Haigh as transport secretary.
As part of the mini reshuffle, Sarah Sackman has been appointed as a justice minister, and Lucy Rigby has replaced her as solicitor general.
“As Solicitor General, Sarah’s dedication to public service and her legal expertise has been an enormous boost to my department and to the Government,” Attorney General Lord Hermer said.
Of Ms Rigby, he said: “Lucy brings a formidable amount of legal experience and international expertise to the role and I’m looking forward to working with her.”
Cabinet office minister Ellie Reeves will start attending Cabinet meetings.
