Louise Haigh to get severance pay after quitting as transport secretary, Downing Street says

Louise Haigh is entitled to severance pay despite resigning after less than six months as transport secretary, Downing Street has said.

Ms Haigh, the Sheffield Heeley MP, quit on Friday after it emerged she had pleaded guilty to a criminal offence related to incorrectly telling police that a work mobile phone was stolen in 2013.

Asked if she would receive to ministerial severance pay, the Prime Minister’s official spokesman referred to legal rules stating that ministers under the age of 65 are entitled to a loss-of-office payment worth a quarter of their annual ministerial salary if they are not appointed to a new role within three weeks.

In Ms Haigh's case, that would be equivalent to just under £17,000.

Asked if Sir Keir Starmer would encourage Ms Haigh to voluntarily forego the payment, the spokesman said: "He’d leave that up to her."

Labour in opposition had called to reform the rules and presented a Bill aiming to change the system after it emerged nearly £1 million was spent during the political chaos of 2022.

Former prime ministers Boris Johnson and Liz Truss both received £18,660 after resigning, while Kwasi Kwarteng was given £16,876 when he was forced out as chancellor after less than six weeks in the job, according to Government figures.

Labour wanted to overhaul the rules to ensure departing ministers get a quarter of their actual earnings over the previous year.

Ms Haigh was a Cabinet minister for just under six months.

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