The Transformation Fund

The Public Sector Transformation Fund (PSTF) was used to support voluntary exit schemes across the public sector.

The PSTF was financed from borrowing under the Reinvestment and Reform Initiative (RRI), and was 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.

The Economic Advisory and Governance Unit within the Department of Finance administered the PSTF bidding and allocation process. EAGU also completed annual summary evaluations of each year of operation of the PSTF, as well as a final four-year Longitudinal Review.

Over the four year period, in total 46 entities operated 114 voluntary exit schemes funded with £281.7m from the PSTF. The 114 schemes exited c.6,610 gross Full Time Equivalent (FTE) staff,  generating full-year net paybill savings of £234.4m.

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