The application of performance-related pay (PRP) in the Civil Service has been government policy since the late 1980s

Susan Davis

FOI REQUEST (ref: 258652) - PERFORMANCE RELATED PAY IN THE PUBLIC SECTOR

I refer to your request of 9 September about performance related pay schemes in the public sector.

The Cabinet Office is responsible for reward arrangements in the Civil Service. You should seek information about the wider public sector from HM Treasury.

The information requested in respect of the Civil Service is as follows:

There are approximately 500,000 (full-time equivalent) staff in the Civil Service.
For staff below the Senior Civil Service (SCS), individual departments and agencies have delegated authority to determine pay arrangements that best meet their own business needs.
For the Senior Civil Service (approximately 4,000 staff), pay is managed centrally by the Cabinet Office.
The application of performance-related pay in the Civil Service has been government policy since the late 1980s and applies to all staff. A close and effective link between pay and performance is a condition of pay delegation and increased use of variable pay (i.e. one-off payments that are not consolidated into salary) is a key element of the reward arrangements for the SCS.
For the SCS, performance incentives are paid primarily as variable pay. Below the SCS, departments have delegated authority to tailor reward packages to meet their own business needs and the mix of performance related base pay and variable pay is a matter for each organisation. Nevertheless the trend in the Civil Service is towards the use of:

consolidated base pay to reflect competence and job weight, set at affordable levels reflecting what is needed to recruit, retain and motivate the workforce; and
variable pay to reflect how jobs impact on organisational performance, with growing non-consolidated budgets and a mix of team and/or individual approaches.

If you have any queries about this letter, please contact me. Please remember to quote the reference number above in any future communications.

If you are unhappy with the service you have received in relation to your request or wish to request an internal review, you should write to:

Sue Gray

Director

Cabinet Office

70 Whitehall

London

SW1A 2AS

email: [Cabinet Office request email]

You should note that the Cabinet Office will not normally accept an application for internal review if it is received more than two months after the date that the reply was issued.

If you are not content with the outcome of your internal review, you may apply directly to the Information Commissioner for a decision. Generally, the Commissioner cannot make a decision unless you have exhausted the complaints procedure provided by Cabinet Office. The Information Commissioner can be contacted at:

The Information Commissioner's Office

Wycliffe House

Water Lane

Wilmslow

Cheshire

SK9 5AF

Yours etc

Duncan Everest

Reward Team

Civil Service Capability Group

Cabinet Office

Admiralty Arch

The Strand

SW1A 2WH

[email address]

020-7276-1523