Britain's civil service workforce could see their redundancy payments slashed if new government plans are enforced, forcing public sector unions to seek legal action in the process.

A consultation paper issued this month suggests that severance pay should be capped at two years' pay, down from the three years currently exercised by many workers in Whitehall.

The paper has also suggested that early retirement deals be quashed, forcing the Public and Commercial Services Union (PCS) to accuse the government of pushing workers out 'on the cheap'.

"This is a disgrace and is particularly cynical at a time when we can clearly see that tens of thousands of jobs are at risk over the next few years," said Mark Serwotka, PCS General Secretary.

The plans have been issued after Gordon Brown announced earlier this year that Whitehall severance terms would need to be trimmed to the tune of £500m in the next three years. Increasing concerns about rising public sector wages coupled with pension and benefit problems have also fuelled the fire.

William O'Neill Head of Head of the Litigation Department at Rowlands Solicitors agrees that:  "In today's economic situation thousands of jobs are at risk and to place a form of threat like this over the heads of those work in an important area of Government, whether local or national, will certainly not have the effect of softening the blow of the recession.

Early retirement deals should remain in place.  Early retirement, in some cases, is a necessity should a worker no longer be able to fulfil his or her duties either through illness or injury.  Why should those workers forced into early retirement be made to suffer particularly with economic hardship being felt by so many?

It is imperative that workers who are effected by these proposals seek the correct legal advice before time runs out.In terms of severance pay it may be possible to argue that the existing enhanced packages have become a contractual entitlement."

The PCS have vowed to take legal action in an attempt to halt the government's plans coming into force.

With maximum weekly redundancy calculations set to jump from £350 to £380 on October 1st, the government's new cap suggestions, and resulting rage from civil workers, will take the shine off a scheme aimed at softening the recession's blow.