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When a minister leaves office, they are entitled to receive a one-time payment amounting to 25% of their annual salary. However, ministers who are over the age of 65 or those who return to a ministerial position within three weeks do not qualify for this payment. This was highlighted in the Ministry of Housing, Communities and Local Government’s 2025/26 annual accounts, which recorded the severance payment made to Rayner.
In her first interview since rejoining the government, Rayner was asked whether she intended to return the severance money. Speaking with Matt Chorley on BBC Radio 5 Live, she stated, “No, my severance payment was given to me at the time, I had worked in government for a period of time and then I came out of government for just under a year.” She went on to add, “I will be delivering in government again.” Previously, Rayner criticized the Conservative Party for what she described as a “revolving door” of ministers who returned to government roles after very short absences.
The Conservative Party responded earlier in the week by accusing Rayner of having “quit in disgrace and took a £17k payout” last year. They questioned whether she would return the money now that she had resumed her previous role, suggesting a double standard by saying: “Now she’s got her old job back, will she return the cash? Or is it one rule for Labour, and another for everyone else?” Rayner’s exit last September followed an inquiry conducted by the prime minister’s ethics adviser, Sir Laurie Magnus, who acknowledged that she had “acted with integrity” but found that she had breached the ministerial code. Sir Laurie noted that while she had obtained legal advice regarding a property purchase, she failed to secure additional expert tax advice as recommended.
In May, Rayner reached a settlement with HMRC over her tax affairs after an investigation revealed unpaid stamp duty amounting to £40,000. She asserted she was “exonerated” from allegations that she had intentionally sought to avoid paying tax. Reflecting on the previous year’s events, Rayner told Matt Chorley, “The situation I went through last year was really difficult, it was difficult for my family, but I felt I’d let people down and I never want to let people down, I want to fight for them.” She conveyed that she still has important objectives to pursue in government, including initiatives focused on building council houses and supporting local authorities. Burnham has pledged to implement “the biggest council house building programme since the post-war period,” though when asked for specifics, Rayner declined to offer precise figures or define when the post-war era ended. Instead, she emphasized government investment by saying, “We want to aspire to get as far as possible and what we’ve done as a government is put more investment in that, the £39bn for social and affordable housing grant funding that we want to get out the door.
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