𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Labour has been accused of presiding over “chaos” and a “waste of taxpayers’ money”, with a key Government department paying off hundreds of staff while taking on hundreds more. The Cabinet Office – traditionally seen as the “engine room” of Whitehall – is now facing calls to “come clean” about the true cost to the public purse of the pay-offs and new hires.

The Conservatives uncovered that 383 staff left the Cabinet Office through “voluntary exit” in 2025-26 but 627 new appointments were made to the “core” department. This does not include the number of people joining the Fast Stream programme, which trains future senior managers, or those taking up roles on “arm’s length bodies”.

Mike Wood, the shadow minister for the Cabinet Office, said: “Labour needs to explain why on earth it is paying off 383 civil servants while hiring 627 more. What a waste of taxpayers’ money. The Conservatives have been very clear that we would cut the civil service back to 2016 levels. Labour Ministers would do well to take a leaf out of our book. Labour must come clean on the cost of these payouts and explain why taxpayers are footing the bill for this chaos.”

The Conservatives are committed to reducing the size of the civil service by 132,000 to save £8billion.

William Yarwood of the TaxPayers’ Alliance said: “Taxpayers will be furious to see their money being wasted on a bureaucratic revolving door in Whitehall. Handing out massive severance payouts to hundreds of civil servants while simultaneously hiring hundreds more is an appalling waste of taxpayers’ hard-earned cash. Ministers must freeze civil service recruitment and make real cuts to Whitehall’s bloated headcount.”

A Cabinet Office spokesperson insisted the department was making important changes.

He said: “We are reshaping for the future. While our latest annual report shows total headcount decreased by 22% [full-time equivalent posts], a strategic shift in hiring ensures we are built to tackle today’s challenges and fulfil the Government’s priorities.”

The department pointed to a Treasury report showing it had delivered £123million in efficiencies and savings in 2025-26. It claims that in the year to March, there was a reduction in 1,470 full-time equivalent positions.