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 is chaired by David Sterling and has membership from each department.
In 2015/16, public sector voluntary exit schemes resulted in around 4,300 exits at a cost of £170.5m. This generated full year savings of approximately £153m.
Schemes in 2016/17 are projected to spend £47.7m in voluntary exits of approximately 1,250 staff, generating full-year savings of £37.7m.