The Treasury is planning to cut 300 jobs by 2030, according to reports.
The cuts, which are expected to be achieved through voluntary exits and natural attrition, are part of efficiency savings agreed by all departments at last summer’s Spending Review.
As part of SR25, the Treasury’s departmental commitments included 15% in administration cuts. To help achieve the savings, departments have launched voluntary exit schemes, with 5,000 officials set to leave under these schemes by the end of March.
The Treasury closed applications for its voluntary exit scheme in the autumn. Around 200 HMT officials are set to receive their quotes for exit packages by the end of this month, according to the FT, which said the department has also introduced a recruitment freeze for many non-essential roles to help get the headcount down.
The Treasury’s core headcount (full-time equivalent) was 2,030 as of September according to the latest release by the Office for National Statistics, or 3,110 when including its whole group of departments and agencies.
Like many departments, HMT’s headcount has risen significantly in the last 10 years, with Brexit and the Covid-19 pandemic playing a part. Back in September 2015, before the Brexit vote, HMT’s core headcount stood at 1,190, while its total across the HMT group was 1,760.
An HM Treasury spokesperson said: “The Treasury is the largest it has been on record, so during this period of stability it’s now right we reduce our size back to more normal levels through a voluntary exit scheme, in line with the whole of government.”
Commenting on the situation, FDA national officer Robert Eagleton said: "Morale in the Treasury is low. It is one of the lowest-paid government departments and has the highest staff turnover.
"Staff now face ongoing uncertainty caused by headcount reductions and recruitment controls – many are worried about redeployment, the risk of redundancy, and a lack of career progression opportunities.
"The FDA is working hard to support our members and ensure change is managed well."