Police officers will maintain their right to a job for life after the Home Secretary decided not to press ahead with plans to introduce compulsory redundancies.
Compulsory severance was one of the most controversial proposals put forward by rail regulator-turned-chief inspector of constabulary Tom Winsor following the most comprehensive review of pay and conditions in more than 30 years.
Among recommendations accepted by the Home Secretary were plans to cut pay for new constables and the introduction of a fast-track scheme for senior ranking positions.
The Home Secretary, Theresa May, has decided to accept the recommendation of the Police Arbitration Tribunal to reject compulsory severance "at this time".
But she added: " However, this remains a reform that I believe government and the police should continue to consider."
Steve Williams, chairman of the Police Federation of England and Wales (PFEW), which represents tens of thousands of rank-and-file officers, said: " Today's announcement will be welcome news to police officers across England and Wales that despite recent tensions, the Home Office and the Police Federation are able to engage in constructive dialogue, working together in the best interests of the service.
"It is right that police officers who are already undergoing the largest wave of reforms in the history of British policing will now not face the prospect of compulsory severance. We look forward to working with the Government on other important areas of policing in the best interests of our members and the public."
Mr Winsor's reforms were met with scathing criticism from rank-and-file officers, leading to the chief inspector being dubbed the ''Dr Beeching of policing''.
Dr Richard Beeching is synonymous with the mass dismantling of Britain's rail network after he published his controversial report, Reshaping The British Railways.
Mr Winsor has defended his review, arguing it was misunderstood, and rejecting claims he went ''too far, too fast''.