Civil Service Voluntary Exit Scheme 2026: Scotland Pay

Quick answer: The civil service voluntary exit scheme 2026 opened by the Scottish Government offers C Band and Senior Civil Service staff a month's salary per year worked, capped at 21 months, or six months for those at retirement age. Payouts above £95,000 need ministers' sign-off, and the first £30,000 of compensation is normally tax-free.

Key takeaways

The Scottish Government has opened a voluntary exit scheme for C Band and Senior Civil Service staff as part of plans to cut £1bn of corporate costs by 2030.
The offer is a month's salary for every year of service, capped at 21 months, falling to six months for staff already at retirement age.
Scottish public finance rules cap individual severance at £95,000 unless a business case is approved and ministers give their views.
Under Civil Service Compensation Scheme guidance, the first £30,000 of a compensation payment is normally tax-free, and returning to a covered employer soon after leaving can mean repaying some or all of it.
Across UK government departments, 2,690 officials left through voluntary exit schemes in 2025-26, up from 615 the year before.

Last updated: 9 October 2026

The civil service voluntary exit scheme 2026 run by the Scottish Government is now open to managers at C Band and to the Senior Civil Service (SCS). Staff who apply and are accepted can leave with a lump sum worked out from their pay and years of service. This guide explains what is on offer, who can apply, how the payout is calculated and what to check before you sign anything.

What is the civil service voluntary exit scheme 2026 in Scotland?

It is a targeted offer that lets eligible Scottish Government officials apply to leave on agreed financial terms. According to a staff notice reported by The Scotsman, it covers C Band officials and senior civil servants only.

The message came from Miriam Craven, Director General for Corporate. It links the scheme to the Public Service Reform (PSR) Strategy, which targets a £1bn annual saving by 2030 in what the Scottish Government and its public bodies spend on corporate running costs. The staff message says the workforce has already shrunk by 12.7% since recruitment controls began in 2022, and that the organisation "must become smaller and more focused".

Importantly, staff were also told the government "remains committed to the No Compulsory Redundancy Policy". Scottish public finance guidance confirms that this policy, in place since 2007, does not stop employers from running voluntary exit schemes.

How much is the voluntary exit payout?

The headline offer is a month's salary for every year worked, with a ceiling of 21 months. For staff who have already reached retirement age, the payment is capped at six months' salary.

Standard tariff: a month's salary per year worked.
Maximum: 21 months' pay.
At or over retirement age: six months' salary at most.
Large payments: exit payments over £95,000 go to ministers for approval, according to The Scotsman.
Starting pay: C Band roles start at £62,111, so on a one-month tariff a C Band official would pass the £95,000 level after roughly 18 to 19 years.

The Scottish Public Finance Manual (SPFM) adds a firm rule for devolved bodies: voluntary severance payments to individuals are capped at £95,000. An employer can only go above that if it submits a full business case explaining why the cap cannot apply, and ministers' views must be sought.

How is a civil service voluntary exit payment calculated?

Under the Civil Service Compensation Scheme (CSCS) 2010 rules, your payment is based on three things: your pay, the tariff your employer sets, and your years of service. A November 2025 CSCS staff guide published for Research Councils' Pension Scheme (RCPS) members sets out the method. Because it is written for RCPS members, check your own employer's scheme guidance, as details can differ.

Pay: your full basic pay on your last day, plus any permanent pensionable allowances. Pay above £149,820 is treated as £149,820 for this calculation.
Service: your current continuous service, counted in decimal years (for example, 11 years and 200 days counts as 11.5479 years).
Tariff: usually expressed as months' pay per year of service, with a ceiling of 21 months, or six months for people over scheme pension age.
Taper: if you are close to scheme pension age, you get the lower of the normal maximum or the months left until pension age plus six months.
Part-time adjustment: any part-time working in the three years before you leave can scale the maximum down proportionately.

As an illustration of the formula, someone earning £36,000 with 10 years' service on a one-month tariff would receive 10 × £36,000 ÷ 12, which is £30,000. With 25 years' service the same person would hit the 21-month ceiling, giving £63,000.

Who can apply, and will every application be accepted?

Only staff in the eligible grades can apply, and acceptance is not automatic. A Scottish Government spokesperson said applications will be judged against business requirements, workforce priorities, affordability and the need to keep critical skills.

The same CSCS guide makes a useful point for anyone weighing it up: applying does not commit you to leaving. If you do accept, you receive a cash sum in return for giving up your job, and you may be able to use some or all of it to boost your pension.

The staff notice also signals that the process will take time, with leavers expected to depart "in around a year's time".

Is voluntary exit money taxed?

Yes, above a threshold. Compensation up to £30,000 is tax-free under current rules, and normal income tax applies to anything beyond that. Compensation in lieu of notice (CILON) is different: it goes through payroll with both tax and National Insurance deducted.

The CSCS guide says staff are normally entitled to three months' notice, unless their terms and conditions say otherwise. If your agreed leaving date is sooner, the balance is paid as CILON. Scottish guidance adds that, where appropriate, employers expect notice to be worked and annual leave taken rather than paid out.

Can I go back to work in the civil service afterwards?

Yes, but returning quickly can cost you. Both UK and Scottish rules include clawback-style restrictions:

Under the CSCS guide, if you are re-employed by a covered organisation within 28 days, your compensation is cancelled and must be repaid in full.
If you return later, but within the shorter of six months or the notional period your payment covers, you repay part of it.
Under the SPFM, anyone leaving through voluntary severance in Scotland cannot return to the same employer for at least 12 months, including through an agency or a procurement route.

Voluntary exit vs voluntary redundancy: what is the difference?

In general terms, voluntary exit is an agreed departure that your employer can accept or refuse, while compulsory redundancy is imposed. In Scotland, the No Compulsory Redundancy Policy means voluntary routes, alongside recruitment controls, resignations and retirements, are how the government is reducing headcount.

That position has been under pressure. The Scotsman reported that Ivan McKee, the public sector reform secretary, signalled he would consider ending the ban if every other way of reducing the workforce had been "exhausted". For now, the staff notice says the policy stands.

Are UK government departments running exit schemes too?

Yes. Civil Service Statistics show 2,690 officials left UK departments through voluntary exit schemes in 2025-26, compared with 615 in 2024-25, according to Civil Service World.

The Department for Environment, Food and Rural Affairs (Defra) recorded the most, with 450 including agencies.
The Cabinet Office followed with 410, then the Foreign, Commonwealth and Development Office (FCDO) with 380.
The National Audit Office (NAO) expects over 8,500 civil servants to depart through exit schemes before April 2027, costing an estimated £536m.
Departments must trim their administration spending, in real terms, by 11% or more by 2028-29 and by 16% by 2029-30.

Common mistakes to avoid before you apply

Ignoring the taper: if you are within about 15 months of scheme pension age, your maximum is cut to the months remaining plus six (for example, 8 months away means 14 months' pay at most).
Forgetting pension options: check whether you can take your pension early and use compensation to buy out the reduction, and ask your pension administrator for figures.
Overlooking tax: only the first £30,000 is tax-free, and added pension counts towards your Annual Allowance (£60,000 in 2025-26).
Planning a quick return: rejoining a CSCS-covered employer within the shorter of six months or the period your payment covers can trigger repayment, and in Scotland you cannot return to the same employer for 12 months.
Not getting advice: talk to your trade union, HR team or an independent financial adviser before signing an agreement.

What this means for you

If you are a C Band or senior Scottish Government official, read your scheme guidance carefully, request a personal estimate and compare it with your pension position before applying. If you work elsewhere in the civil service, note that further exits are forecast (the NAO expects more than 8,500 by March 2027), so keep your CV current. Related Jobsiz reading: "Royal Mail Job Cuts 2026: Who Is Affected and Your Rights", "Employment Tribunal Time Limits: New 6-Month Rule (UK)" and "UK Job Vacancies at 702,000: What Jobseekers Need (2026)".

Frequently asked questions

How much is the civil service voluntary exit scheme payout?

In the Scottish Government scheme, it is a month's salary for every year worked, capped at 21 months. Staff at retirement age can receive at most six months' salary. Payments over £95,000 need ministerial approval.

Is there a civil service voluntary exit scheme calculator?

Your employer or pension administrator should provide a personal estimate. You can also check the basic sum yourself: on a one-month-per-year tariff such as Scotland's, multiply years of service by monthly pay, up to the 21-month ceiling, then adjusted for any taper or part-time service.

Is a voluntary exit payment tax-free?

Compensation up to £30,000 is tax-free under current rules. Anything above that is taxed normally. Pay in lieu of notice is taxed and has National Insurance deducted through payroll.

Who is eligible for the Scottish Government voluntary exit scheme?

The scheme is open to C Band and Senior Civil Service staff. Each application is assessed against business needs, workforce priorities, affordability and the need to keep critical skills, so eligibility does not guarantee acceptance.

Do I have to accept a voluntary exit offer?

No. CSCS guidance says applying does not commit you to leaving. You can decline an offer if the terms do not suit you.

Can I return to a civil service job after voluntary exit?

You can, but repayment rules apply. Rejoining a covered employer within 28 days cancels the compensation, and a later return within a set period means partial repayment. In Scotland, you cannot rejoin the same employer for at least 12 months.

Sources

This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published 9 October 2026. We update stories when new verified information becomes available.

Civil Service Voluntary Exit Scheme 2026: Scotland's Payouts