Dear Ms Davis,

Provision of requested information

Thank you for your request for information about performance-related pay schemes in Defra, which we received on 19 November. Your request has been considered under the Freedom of Information Act 2000.

You asked for a list of all performance-related pay schemes in the public sector bodies for which Defra is responsible, with, for each scheme, the following information:

a) the categories of staff (i.e. job titles) to which the scheme applies;

b) the approximate numbers of staff in each such category;

c) the categories of staff (i.e. job titles) to which the scheme does not apply;

d) the approximate numbers of staff in each such category;

The following information covers Defra and its Executive Agencies. It does not cover Defra's Non Departmental Public Bodies, which are regarded as separate organisations under the Freedom of Information Act. Job titles are not generally used in Defra and so grades have been provided instead.

All staff covered by Defra and its Agencies' terms and conditions are civil servants.

Bonuses are used to reward excellent performance during the year and are based on a judgement of how well an individual has performed relative to their peers. Performance related pay schemes encourage high attainment because bonuses have to be earned each year. They help drive high performance in departments and agencies and support better public service delivery.

Separate performance management and performance related pay schemes apply to Senior Civil Servants (SCS) and those grades at AA to Grade 6 below the SCS.

For the SCS, the same scheme applies to all 200 such staff in core-Defra and its Executive Agencies (Animal Health (AH), Centre for Environment, Fisheries and Aquaculture Science (CEFAS), Central Science Laboratory (CSL), Government Decontamination Service (GDS), Marine and Fisheries Agency (MFA), Rural Payments Agency (RPA), Veterinary Laboratories Agency (VLA) and Veterinary Medicines Agency (VMD)). Non-consolidated cash payments reward in-year performance in relation to agreed objectives, or short term personal contribution to wider organisational objectives. Bonuses are paid in addition to basic pay increases, which are also differentiated by performance, and do not count towards pension.

Bonuses are allocated by departments from a `pot' expressed as a percentage of the SCS salary bill, which is agreed by Cabinet Office each year following the Senior Salaries Review Body recommendations. The intention is that bonus decisions should be differentiated in order to recognise the most significant deliverers of in-year performance.

For staff below the SCS at grades AA to Grade 6, common arrangements apply to the 2,400 staff in core-Defra and those staff covered by core-Defra terms and conditions in AH (1,660 staff), GDS (20 staff), MFA (190 staff) and VMD (140 staff).

The High Performance Bonus Awards scheme provides staff with an opportunity for recognition and reward for delivery of an outstanding outcome or performance that significantly exceeds normal expectations. The process should provide staff at all grades with an opportunity to earn a bonus, and ensure that achievements in operational, policy and corporate services areas are recognised as being of equal esteem. There are two types of award:

Separate arrangements apply in Defra's other executive agencies, details of which are outlined below.

CEFAS

Only staff performing above expectations in terms of what and how they perform are considered for a bonus, i.e. delivery of tangible outcomes/objectives and performing above expectations in demonstrating CEFAS values and competences. 40% of staff are expected to receive an individual performance related pay bonus. 25% of staff are expected to receive an additional 4% of salary; the 15% most outstanding staff are expected to receive 8%. These bonuses are paid as one-off non-consolidated bonus and are pro-rated for part-timers. Bonuses apply to all 540 CEFAS staff below the SCS.

Also, a corporate bonus payable is to all (except those under disciplinary procedures or unsatisfactory performers). Payment is linked to the achievement of ministerial objectives and affordability.

CSL

CSL has over recent settlements operated a performance-related pay scheme that offers a combination of consolidated pay increases and non-consolidated bonuses that is dependent on an individual's performance marking and position in their pay scale. This scheme applies to all permanent and fixed-term CSL staff below SCS level but does not apply to staff on short-term appointments. On 1 August 2008 (the most recent settlement date), this covered 670 staff. 22 staff on short-term appointments were excluded.

RPA

As part of RPA's pay award in recent years, a non-consolidated bonus is paid to staff who achieve an “exceeded” marking in their most recent Annual Staff Report. All employees, except those who are still to pass probation and the SCS, are eligible to receive the bonus if they attain the “exceeded” marking. Individuals who work at RPA but are employed through a third party, such as Agency staff and contractors, are not eligible. In 2007, 3,530 were eligible to receive a bonus and 550 actually did so.

VLA

All 1,250 VLA Staff below the SCS are covered by the Performance Pay arrangements. The pay progression system incorporates:

1. A tapered award for those receiving an Effective or higher overall rating in their annual report. This allows 5% consolidated at the minimum of the Pay Band tapering to a 1% increase at the maximum of the Pay Band;

2. For those receiving a Very Good overall assessment a further 1% consolidated increase is added to the tapered increase mentioned at 1 above;

3. For those receiving an Outstanding overall assessment a further 1% non-consolidated increase will be paid as a lump-sum in addition to the increases payable as at 1 and 2 above.

4. Those receiving an Unsatisfactory assessment receive no increase.

The information supplied to you continues to be protected by the Copyright, Designs and Patents Act 1988. You are free to use it for your own purposes, including any non-commercial research you are doing and for the purposes of news reporting. Any other re-use, for example commercial publication, would require the permission of the copyright holder. Most documents supplied by Defra will have been produced by government officials and will be Crown Copyright. You can find details on the arrangements for re-using Crown copyright on OPSI (Office of Public Sector Information) at:

http://www.opsi.gov.uk/click-use/index.htm

Information you receive which is not subject to Crown Copyright continues to be protected by the copyright of the person, or organisation, from which the information originated. You must ensure that you gain their permission before reproducing any third party (non Crown Copyright) information.

In keeping with the spirit and effect of the Freedom of Information Act 2000, all information is assumed to be releasable to the public unless exempt. The information you requested may now be published on our website together with any related information that will provide a key to its wider context.

If you have any queries about this letter, please contact me. I also attach an annexe giving contact details should you be unhappy with the services you have received.

Yours sincerely

Richard Parmenter

Direct Line 020 7270 8224

Fax 020 7270 8476

Email [email address]

Annexe A

Complaints

If you are unhappy with the service you have received in relation to your request you may make a complaint or appeal against our decision within 40 working days of the date of this letter. Please write to Clive Porro, Head of Defra's Information Rights Team at Area 1E, 3-8 Whitehall Place, London, SW1A 2HH, who will arrange for an internal review of your case. Details of Defra's complaints procedure can be found at: www.defra.gov.uk/corporate/opengov/complain/index.htm.

If you are not content with the outcome of the internal review, you have the right to apply directly to the Information Commissioner for a decision. Please note that generally the Information Commissioner cannot make a decision unless you have first exhausted Defra's own complaints procedure. The Information Commissioner can be contacted at:

Information Commissioner's Office

Wycliffe House

Water Lane

Wilmslow

Cheshire

SK9 5AF

Department for Environment, Food and Rural Affairs

3 - 8 Whitehall Place

London SW1A 2HH

Telephone 08459 33 55 77

Website www.defra.gov.uk