Civil Service Voluntary Exit Scheme explained
What the Civil Service Voluntary Exit Scheme is, how it differs from voluntary and compulsory redundancy, the settlement agreement that can accompany it, and what to check before you accept.
What is voluntary exit?
Voluntary exit (VE) is an employer-initiated route under the Civil Service Compensation Scheme: a department opens an application window, invites staff to apply to leave, and then decides which applications to accept, usually to reduce headcount or reshape a directorate ahead of a restructure. It is calculated by tariff, on the more generous of the CSCS bands, one month's pay per year of reckonable service up to a capped number of months, tapering to a lower cap at or over Scheme pension age.
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How VE differs from voluntary redundancy and compulsory redundancy
Voluntary redundancy (VR) starts from the opposite direction: your specific role has already been identified as redundant, and you volunteer to be the person who goes. VE and VR share the same tariff under the CSCS, but VE can be opened across a wider group of posts that are not all individually redundant.
Compulsory redundancy (CR) is where the department selects you without your agreement, typically once a voluntary window has not reduced headcount enough on its own. CR is calculated on a lower months' cap than VE or VR, which is the main reason departments usually try a voluntary route first.
The settlement agreement that can accompany a VE exit
A standard VE payment on the CSCS tariff does not, by itself, require a settlement agreement. One becomes relevant where your department wants a binding waiver of every possible claim as part of your exit, or where terms beyond the standard tariff have been discussed, which for a public sector employer generally needs HM Treasury approval as a "special severance payment" under Managing Public Money Annex 4.13. A settlement agreement is only legally binding once you have taken independent legal advice on it, which your department usually pays for.
Timing and pension interactions
VE windows run to a fixed application and decision timetable set by the department, and accepting an offer is a decision you cannot easily reverse once your exit date is agreed. If you are close to Scheme pension age, or a member of alpha, your exit may interact with early access to pension benefits: this page describes that boundary but does not advise on it. Speak to MyCSP and an FCA-regulated financial adviser before you decide.
What to check before accepting
- Which exit route you are actually being offered: VE, VR or CR, since the tariff and cap differ.
- Whether your reckonable service has been calculated correctly, including any transferred prior service.
- Whether a settlement agreement is offered alongside the payment, and what it asks you to waive.
- Your pension position, checked with MyCSP and an FCA-regulated adviser, before you agree an exit date.
Frequently asked questions
What is the Civil Service Voluntary Exit Scheme?
It is the employer-initiated route under the Civil Service Compensation Scheme where a department opens an application window and invites staff to leave voluntarily, usually to reduce headcount or restructure. Staff apply; the department decides whether to accept each application, so being accepted is not guaranteed even if you apply.
How is voluntary exit different from voluntary redundancy?
Voluntary redundancy is where your specific role has already been identified as redundant, and you volunteer to be the person selected. Voluntary exit is broader: a department can open a VE window across a wider group of roles, without every applicant's post necessarily being redundant. Both share the same, more generous CSCS tariff, but the underlying trigger is different.
How is voluntary exit different from compulsory redundancy?
Compulsory redundancy is where the department selects you without your agreement, typically after a VE or VR window has not reduced headcount enough. It is calculated on a lower CSCS tariff than voluntary exit or voluntary redundancy, which is one of the reasons departments usually try a voluntary window first.
Will I get a settlement agreement if I take voluntary exit?
Not automatically. A standard VE payment calculated under the CSCS tariff does not itself require a settlement agreement. A settlement agreement becomes relevant where the department wants a binding waiver of all potential claims, or where extra terms beyond the standard tariff have been negotiated, which for the public sector generally needs HM Treasury approval under the Managing Public Money special-severance rules.