Staff offered £40,000-a-year for life 'bribes' to quit shamed ministry Defra

The astonishing offer has prompted a stampede to grab the money among staff as young as 50 at the Department for Environment, Food and Rural Affairs (Defra).

Bizarrely, the £300 million "voluntary retirement" scheme was devised as part of emergency measures to save money after Defra was fined £300 million by the EU for failing to pay farm subsidies on time.

The department's budget has come under further strain as a result of foot-and-mouth disease, bird flu, the floods and a failure to meet earlier job-reduction targets.

But some officials say the job-cutting scheme is so generous that Environment Secretary Hilary Benn is "throwing good money after bad".

Defra Permanent Secretary Helen Ghosh appealed for 300 staff to leave.

"The scheme offers the same terms as those given to staff leaving on a compulsory basis and is the most generous available under the Civil Service Compensation scheme," she wrote.

Under the deal, officials aged 50 and over can retire on an immediate full pension. They get a lump sum of three times their annual pension. In addition, they qualify for a bonus lump sum of up to £30,000 based on service.

It means that a 50-year-old career civil servant earning £100,000 a year can get a pension of nearly £40,000 a year, plus a lump sum of £150,000.

There is said to have been an "overwhelming response" to the offer.

Some of the applicants are senior officials who earn more than £100,000 a year. Separate "voluntary early-severance" payments are available to under 50s.

"For some people it feels like winning the lottery," said one insider.

"They can't believe their luck. There are retirement parties all the time stretching into next spring. It seems an odd way to save money but no one is complaining. Some intend to take the money and then work in the private sector."

A Defra spokeswoman said: "Defra needs to ensure it is working in the most cost-effective way. This includes reducing the number of people who work at the department in line with Government targets.

"We have in place a voluntary early- retirement and voluntary early-severance scheme. To date, about 300 people have taken up the offer. After the initial package this will deliver a long-term saving."

The spokeswoman refused to confirm estimates that the package would cost the taxpayer £300million or say how much individuals were paid.