PENNY Thompson’s controversial six-figure pay-off from Brighton and Hove City Council comes eight years after she received a £330,000 settlement from another council, it has emerged.

The outgoing chief executive is leaving the council with a £269,000 payout, prompting a Government minister to tell The Argus that they will block six-figure settlements in future.

This week was a case of history repeating itself for Ms Thompson, who was given a £330,000 settlement from Hackney Borough Council in 2007 after stepping down after two-and-a-half years into the role.

In her retirement she formed a consultancy firm before taking on three more high-profile public roles.

She joined Brighton and Hove City Council in November 2012 after her previous post with the General Social Care Council was terminated when the social worker regulator was abolished.

Local government minister Marcus Jones said his government is now working to end the bumper pay-offs for outgoing council bosses after a pre-election pledge of capping settlements for public officials at £95,000.

He said: “Brighton and Hove City Council should be accountable for the local decisions they make about their workforces, including any decision to offer senior staff a pay-off.

“The Government has given councillors powers to stop unwarranted pay-outs for senior staff and ensure that there is proper scrutiny in the full light of full council by elected local councillors.

“We’re bringing forward measures to deliver our manifesto commitment to end six figure pay-offs for the best paid public sector workers.”

The council is now looking for its fourth chief executive in only six years and Ms Thompson’s payout comes six years after Alan McCarthy was handed £750,000.

Victims of council cutbacks have added their voices to the swell of anger and disapproval over the pay-off, telling The Argus they are “really riled” by the news.

Residents angry at the pay-out are preparing an e-petition which they will take to the council.

Eighty-two-year-old Rita Packham, 82, who is one of the visitors to Tower House Day Centre now having to go without hot meals because of the cut to catering subsidies in May, said: “It really riles, this news has made me really cross.

“It really gets on my nerves to hear she is getting all that money, it’s greedy.

“I worked 40 years for the same person and when I left I got given £50; I wonder whether those at the council know there’s another world outside.”

Claire Jacobs, who campaigned to save the under-threat children’s centre used by her son Noah, said: “It’s quite upsetting that they used that amount of money on just one person when it could do a lot of good spent elsewhere.

“They need to look very closely where they are spending the money and what’s more important.”