Tories are demanding Angela Rayner return £16,876 in severance pay she received after resigning from the Cabinet last year, now that she has been reinstated to her former position as Housing, Communities and Local Government Secretary under new Prime Minister Andy Burnham. Rayner’s return to government, announced on Monday, follows her resignation in September 2025 amid controversy over unpaid stamp duty on a property she purchased. The Conservatives argue that her reappointment highlights inconsistent treatment of ministers regarding severance payments. Rayner was appointed to Burnham’s Cabinet after Steve Reed, a supporter of Labour leader Keir Starmer, was removed from the role. This marks her return to government less than a year after stepping down. The official accounts for the Ministry of Housing, Communities and Local Government, released recently, confirm that Rayner received the £16,876 payment upon leaving the department on 5 September 2025. The Conservatives have criticized her decision to retain the funds, suggesting it reflects double standards compared to their own stance on such payments. James Cleverly, the shadow housing secretary, accused Rayner of hypocrisy, stating that while she campaigned against tax avoidance, she herself avoided paying £40,000 in stamp duty on her new flat. He argued that she benefited from a taxpayer-funded reward and now holds a position overseeing stamp duty, a tax she allegedly evaded. Cleverly called for Rayner to return the money, emphasizing the perceived disparity in treatment between Labour and other parties. Mike Wood, the shadow Cabinet Office minister, contrasted Rayner’s acceptance of the severance payment with that of Rushanara Ali, another MHCLG minister who declined her own severance payment after controversies surrounding her property dealings. Wood suggested that Rayner’s retention of the funds was a strategic move to offset her unpaid tax liability, adding that her current role overseeing stamp duty makes it imperative for her to return the money to the public purse. Rayner addressed these demands in an interview with BBC Radio 5 Live, stating she would not return the severance payment. She explained that the payment was given to her at the time of her resignation and that she had served in government for a period before stepping down. She emphasized her commitment to continuing her work in government, noting that she had resolved her tax issues with HMRC and was exonerated of deliberate tax avoidance. Rayner acknowledged the difficulties faced by her family during the ordeal but stressed her dedication to serving the public interest. The issue of severance payments for departing ministers has been a contentious topic, particularly with changes to the ministerial code introduced in October 2025. These updates state that ministers who are reappointed within three months of leaving office are expected to forgo their salary during the overlap with their previous severance payment period. This provision could affect other returning ministers, such as John Healey and Wes Streeting, who left Sir Keir Starmer’s administration recently. However, it remains unclear whether Lucy Powell, now appointed as Education Secretary, accepted a severance payment when she was removed from her role as Commons Leader. Rayner highlighted her focus on unfinished governmental tasks, including expanding council housing and supporting local authorities. Burnham has outlined plans for a significant increase in council house construction, aiming to achieve the largest such program since the post-war era. While Rayner did not specify exact figures or timelines, she expressed the government’s intent to invest heavily in social and affordable housing, citing a £39 billion grant funding allocation. The debate over Rayner’s severance payment underscores broader discussions about transparency and accountability in political appointments and financial practices. As she resumes her duties, the scrutiny surrounding her actions continues, reflecting ongoing tensions between political factions and the public’s expectations of ethical governance.
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