The six-member panel was comprised of civil servants, structural engineers, police and fire service representatives.

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The government claims that under the present rules some civil servants are eligible for a package worth more than six years' pay.

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He attacked the existing scheme, under which some civil servants are entitled to more than six years' salary if they are made redundant, as "completely unaffordable, inherently unfair and in urgent need of reform".

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The previous Labour government had attempted to reform the civil service compensation scheme, which can result in some senior civil servants being paid more than six times their annual salary.

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