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Incentive Packages

Volume 447: debated on Tuesday 13 June 2006

To ask the Secretary of State for Work and Pensions what the value is of (a) pay supplements, (b) bonuses and (c) other incentive packages that are payable in his Department on the basis of geographic location; how many people are in receipt of each payment; and what the total cost to his Department of each payment was in 2004-05. (35913)

The information is as follows.

(a) DWP has four geographical pay areas:

National

Inner London

Outer London, and

Specified Location Zone (SLPZ)

The differential cost is not a standard amount but is calculated in each individual pay range.

The current numbers of staff in post in each individual pay area, the 2005 value of the average additional cost above national rates for each of the main grades and the estimated total additional cost in 2004-05 are contained in the following tables:

Table 1: Staff in post (October 2005) and additional average salary value abovenational rates in 2005

Grade

SLPZ

Outer London

Inner London

Total Staff

Number

(£)

Number

(£)

Number

(£)

Number

Band A/AA

111

1,695

316

2,155

509

3,290

936

Band B/AO

1,070

1,870

2,858

2,345

4,943

3,480

8,871

Band C/EO

972

1,930

2,216

2,275

4,972

3,420

8,160

Band D/HEO

122

1,845

268

2,310

973

3,415

1,363

Band E/SEO

29

2,065

64

2,520

458

3,665

551

Band F/Grade 7

11

2,565

17

3,020

368

4,000

396

Band G/Grade 6

3

3,235

8

3,690

140

4,740

151

Total

2,318

5,747

12,363

20,428

Table 2: Estimated total additional cost of pay areas in 2004-05

£ million

Grade

SLPZ

Outer London

Inner London

Total

Band A/AA

0.058

0.213

0.571

0.843

Band B/AO

0.521

1.866

4.589

6.976

Band C/EO

0.472

1.307

4.325

6.103

Band D/HEO

0.064

0.180

0.867

1.111

Band E/SEO

0.019

0.047

0.432

0.499

Band F/Grade 7

0.009

0.016

0.360

0.386

Band G/Grade 6

0.005

0.010

0.145

0.160

Total

1.148

3.639

11.289

16.078

Table 4: Estimated total additional cost as a percentage of total paybill

Percentage

Grade

SLPZ

Outer London

Inner London

Total

Total

0.05

0.15

0.47

0.68

In addition to the above pay areas, DWP pays a location based recruitment and retention addition (RRA) to staff based on a number of Scottish islands:

Orkneys

Shetland

Outer Hebridies

Tiree

Islay and

Jura

In 2004-05 it is estimated that some 106 staff were eligible for payments at a total cost of some £92,000 pounds.

(b) DWP does not pay bonuses on the basis of geographical locations.

(c) DWP does not have any incentive packages in place for staff in any particular geographical locations.