Almost £1m was paid to staff from Preston when they took voluntary redundancy from the Driver and Vehicle Licensing Agency (DVLA).
Preston’s DVLA office in Caxton Road, Fulwood, closed in 2013 - despite numerous strikes to try and stop closures across the country.
All DVLA offices were closed in a move to save £28m.
Now, figures show when the office closed 45 members of staff volunteered for voluntary redundancy and in total £910,687 was paid out.
The information was revealed after Preston’s MP Mark Hendrick asked the Secretary of State for Transport what the pay out was.
The website They Work For You shows Claire Perry Parliamentary Under-Secretary (Department for Transport) said: “When the Driver and Vehicle Licensing Agency’s local office in Preston closed, 45 members of staff volunteered to take a redundancy package.
“The total cost of those redundancies was £910,687.44. There were no compulsory redundancies.”
Mr Hendrick said while people may question if the amount paid in redundancy was value for money, the new electronic way of working by the DVLA, including online systems and scrapping the paper tax disc are more efficient.
He said: “The Department for Transport response showed that the cost of this redundancy was more than £900,000.
“This in itself may seem a lot of money and people may question why this was considered value for money from the Government’s point of view.
“It is regrettable from an employment point of view but clearly is a more efficient way of issuing licenses.”