Lord Wormald, a former top civil servant, received a pay-off totaling nearly £860,000 after departing his role as Cabinet Secretary and head of the Civil Service in February. The sum, described as "contractual compensation" and "additional severance," was reportedly agreed upon by "mutual agreement" after months of media reports regarding dissatisfaction with his performance.
The Cabinet Office's accounts detail a contractual compensation of £332,897 and additional severance of £526,598. The size of the pay-off was partly to compensate Lord Wormald for pension contributions that would have been affected by his early departure, as well as for a mandatory "waiting period" post-government service. During his tenure, as Cabinet Secretary, he would have had regular access to sensitive national security and economic information.
Lord Wormald's salary for the period of April 1, 2025, to February 13 was between £210,000 and £215,000, bringing his total earnings for that year to over £1 million. The accounts state that the "special severance package" was authorized by the then-Prime Minister on February 16. A note within the accounts indicates that the former Cabinet Secretary opted for early payment of his pension, with the majority of the severance payment intended to ensure he received the full value of his pension as if it were claimed at the normal retirement age.
A spokesperson for the Cabinet Office stated that they do not comment on HR matters, but confirmed that the permanent secretary received a ministerial direction from the then-prime minister to proceed with the payment, and the exchange of letters is a matter of public record.
Lord Wormald's departure in February marked him as the shortest-serving Cabinet Secretary in the history of the post. He was appointed in December 2024 by Prime Minister Sir Keir Starmer, who tasked him with "the complete re-wiring of the British state to deliver bold and ambitious long-term reform." Lord Wormald was replaced by Dame Antonia Romeo.
Prior to his departure, Lord Wormald held ultimate responsibility for due diligence checks concerning the appointment of Lord Mandelson as US ambassador. However, Lord Mandelson was dismissed from the role in September 2025 following the emergence of new information about his relationship with Jeffrey Epstein.
The FDA Union, representing senior civil servants, criticized "anonymous briefings" against Lord Wormald and described his treatment as "a new low for this government and its relationship with the Civil Service."
Conservative shadow Cabinet Office minister Alex Burghart commented on the payout, calling it "another appalling waste of taxpayers' money by Labour."
Lord Wormald was later granted a seat in the House of Lords as an independent crossbench peer, scheduled to formally take his seat on Thursday. This move was among one of Sir Keir's final actions as prime minister.