HIGHLY paid public sector administrators who receive large redundancy pay-outs then return to the same part of the public sector could be forced to hand back the money to the Exchequer.

The Treasury is setting out proposals for legislation requiring individuals earning more than £100,000 who return to the same part of public sector within 12 months of taking redundancy to return all or part of their pay-off.

It is expected the measure - which is included in the Small Business, Enterprise and Employment Bill currently going through Parliament - will mainly affect NHS and local government administrators.

The Treasury said that of the 19,000 NHS administrators made redundant between 2010 and 2013, almost 20 per cent rejoined the NHS while 16 per cent of local government chief executives who left by mutual agreement between 2007 and 2009 had been employed by another council within a year.

Chief secretary to the treasury Danny Alexander said: "It's only fair that highly-paid executives who receive a redundancy pay-out from the public purse and then quickly return to the same part of the public sector repay the taxpayer."

If the measure becomes law, it will take effect from 2016.