Rayner rules out repaying severance cash after making cabinet return

Angela Rayner has told the BBC she will not repay a £16,876 ministerial severance payment after making her return to the cabinet.

The Labour MP resigned as deputy prime minister and housing secretary in September 2025 after failing to pay enough tax on her £800,000 flat in Hove, which resulted in the exit payout.

Rayner was reappointed as housing secretary by new Prime Minister Andy Burnham on Monday, prompting the Conservatives to press for her to return the money.

In 2023, Rayner said there was a "staggering lack of shame" from the Tories after it was revealed former ministers - some of whom later returned to the frontbench - were paid more than £450,000 in severance packages.

A lump sum, equivalent of 25% of the annual ministerial salary, is payable when a minister stops holding office. Departing ministers who are aged over 65 or are reappointed within three weeks do not qualify.

The 2025/26 accounts for the Ministry of Housing, Communities and Local Government record the severance payment for Rayner.

In her first interview since returning to government, Rayner was pressed on whether she would return the money.

She told Matt Chorley on BBC Radio 5 Live: "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 added: "I will be delivering in government again."

Rayner earlier said her criticism of the Conservatives over severance payments came at a time when there was a "revolving door" which saw ministers return to government "after 40-odd days".

The Conservatives earlier this week said Rayner had "quit in disgrace and took a £17k payout" last year.

The party added: "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 departure last September came after the prime minister's ethics adviser, Sir Laurie Magnus, said she had "acted with integrity" but concluded that she had breached the ministerial code.

Sir Laurie said she did get legal advice when buying the property, but failed to seek further expert tax advice as recommended.

In May, Rayner resolved her tax affairs with HMRC following an investigation, settling £40,000 in unpaid stamp duty.

The MP for Ashton-under-Lyne said she had been "exonerated" of the accusation that she had "deliberately sought to avoid tax".

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."

Rayner also said she has "unfinished business" in government, including on building council houses and supporting local government.

Burnham has said he wants to deliver "the biggest council house building programme since the post-war period".

Asked for details to explain what this will look like, Rayner said she would not provide an "exact figure" or provide a date for when she considers the post-war period to have ended.

She said: "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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