Welcome, Lord Payoff! Ex-Cabinet Secretary handed record £860k exit package by Starmer joins Lords… where he can claim £390 a day tax free

See more Daily Mail on Google - save us as a Preferred Source Published: 06:48 EDT, 17 September 2026 | Updated: 06:59 EDT, 17 September 2026 The former Cabinet Secretary handed a record £860,000 payoff by Keir Starmer was installed in the House of Lords today.Lord Wormald of Dulwich was introduced in the Upper chamber, where he will sit as an independent crossbench peer.Wearing the traditional ermine robes, the ex-civil servant took an oath to the King before signing the register. He is now entitled to claim £390 a day tax-free as an allowance for attending sittings.The ceremonial moment came days after the huge cost of Sir Keir's decision to replace the mandarin in February emerged.The latest Cabinet Office accounts revealed that Lord Wormald received 'contractual compensation' of £332,897 and 'additional severance' of £526,598. Lord Wormald of Dulwich was introduced in the Upper House, where he will sit as an independent crossbench peer The peer chuckled as a mobile phone went off during his ceremonial welcome Wearing the traditional ermine robes, the ex-civil servant took an oath to the King before signing the registerA top official took the unusual step of asking Sir Keir - who was struggling to cling on in No10 at the time - to 'direct' the payoff to Sir Chris.The PM had to order the payment personally after being warned in writing that aides could not be confident it was value for money for the taxpayer.Cabinet Office permanent secretary Cat Little said the settlement was so big because it was 'a departure from a high profile, unique role that was agreed at very short notice'. Appointing Sir Chris to the £220,000-a-year job in December 2024, Sir Keir lavished praise on him as 'exceptional' and the right option to 'drive' change.'There could be no-one better placed to drive forward our Plan For Change than Chris, and I look forward to working with him as we fulfil the mandate of this new government, improving the lives of working people and strengthening our country with a decade of national renewal,' the premier said.Sir Chris was drafted in to replace Simon Case - now Lord Case - who received a £200,000 severance deal.However, there were persistent rumours of tensions, with briefings apparently from No10 suggesting the top mandarin had been holding up reforms.He became one of the shortest-serving cabinet secretaries ever when he was removed.Lord Wormald was elevated to the peerage - an honour typically granted to former cabinet secretaries - as one of Sir Keir's last acts in July. The previous highest civil service payoff is thought to have been Tom Scholar, who received £457,000 after departing as the Treasury's permanent secretary.The Cabinet Office accounts stated that Sir Chris, 57, has built up a gold-plated pension pot worth £2.7million over his career. Keir Starmer drafted in a new Cabinet Secretary as one of his final efforts to cling on in No10 Civil servants made Sir Keir give a 'direction' after raising concerns they did not know that the sums represented value for money Sir Keir replied to the request for a direction in February, saying he was entitled to 'consider the wider public interest in respect of bringing his matter to a conclusion'That will give him an annual income estimated at between £130,000 and £135,000 when he reaches retirement age. The payoff was branded an 'appalling waste of money' by the Tories.A Cabinet Office spokesman said: 'We do not comment on HR matters.'The Permanent Secretary at the Cabinet Office received a ministerial direction from the then Prime Minister to proceed with the payment to the former Cabinet Secretary. Their exchange of letters is a matter of public record.'