The Public Sector Transformation Fund (PSTF) is used to support voluntary exit schemes across the public sector.
The PSTF is financed from borrowing under the Reinvestment and Reform Initiative (RRI), and is available over four years:
- £200m in 2015/16
- £200m in 2016/17
- £200m in 2017/18
- £100m in 2018/19
To oversee the allocation and monitoring of funding, the Public Sector Restructuring Steering Group was established. It was chaired by David Sterling and had membership from each department.
Approximately £244.5m of PSTF monies were spent across the 2015/16, 2016/17 and 2017/18 years. This resulted in around 6,000 exits generated full year savings of £213.7m.
Schemes in 2018/19 are projected to spend £37.7m in voluntary exits of approximately 770 staff, generating full-year savings of approximately £25.8m.