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Departmental Pay

Volume 497: debated on Tuesday 13 October 2009

To ask the Secretary of State for Environment, Food and Rural Affairs what employee reward schemes are offered to staff of his Department; what the purpose of each scheme is; how many staff participate in each scheme; and what the cost of operating each scheme was in each of the last five years. (290530)

In addition to base pay, DEFRA operates a number of performance related pay schemes which are available to all staff in the Department.

For the Senior Civil Service (SCS)

Non-consolidated performance related variable pay rewards in-year performances in relation to agreed objectives, or short term personal contribution to wider organisational objectives. Such payments are paid in addition to base pay increases and do not count towards pension.

Performance related variable pay is allocated by Departments from a ‘pot’ expressed as a percentage of the SCS salary bill, which is agreed centrally each year following the Senior Salaries Review Body recommendations. The intention is that such payments should be differentiated in order to recognise those who have performed most significantly during the year.

The following table shows the number and total amount of performance payments awarded to SCS in core-DEFRA and its Executive Agencies in each of the last four years. Due to systems changes, data prior to 2005-06 are available only at disproportionate cost.

£

Number of payments

Total value

2005-06

143

722,000

2006-07

137

1,033,500

2007-08

135

1,269,056

2008-09

133

1,286,625

For staff at Grade 6 and below

The performance related variable pay scheme provides staff in DEFRA and those agencies covered by the core-Department’s reward arrangements, with recognition and reward for delivery of an outstanding outcome or performance that significantly exceeds normal expectations. The process provides staff at all grades with an opportunity to earn such an award, and ensure that achievements in operational, policy and corporate services areas are recognised as being of equal esteem. Such payments are paid in addition to base pay increases and do not count toward pension.

There are two types of award:

In-year performance payments, up to a maximum of £750, paid to individuals or teams in recognition of one-off achievements during the year; and

Annual performance payments that, in 2007 and 2008, were paid to the top 10 per cent. of performers for delivery of an outstanding outcome or performance sustained throughout the whole year.

The following table shows the number and total amount of annual and in-year performance payments awarded to staff in core-DEFRA (including staff who transferred to DECC in October 2008) and those Executive Agencies covered by DEFRA terms and conditions at that time. Due to systems changes, data prior to 2005-06 are available only at disproportionate cost.

In-year payments

Annual payments

2005-06

Total value (£)

789,814

1,815,183

Number of payments

2,234

1,959

2006-07

Total value (£)

744,758

1,401,884

Number of payments

1,844

576

2007-08

Total value (£)

593,603

1,345,361

Number of payments

1,403

524

2008-09

Total value (£)

615,388

1,127,515

Number of payments

1,439

489

Performance related pay schemes encourage high attainment because payments have to be earned each year. They help drive high performance in Departments and agencies and support better public service delivery.

Details of the number and total amounts of payments made under the reward schemes in DEFRA’s Executive Agencies not covered by DEFRA’s terms and conditions are provided as follows.

Rural Payments Agency

The Rural Payments Agency (RPA) operates an Annual Appraisal ‘Exceeded’ performance payment scheme and Special Recognition Scheme, similar to DEFRA’s in-year performance payments.

Details of staff who have received payments are shown as follows:

Payments in financial year

2004-05

2005-06

2006-07

2007-08

2008-09

Total value of exceeded payments (£)

261,832

183,318

253,038

370,020

441,004

Number of payments

523

538

505

547

566

Total value of special recognition scheme payments (£)

22,970

57,820

Number of payments

265

560

Centre for Environment, Fisheries and Aquaculture Science

1. Performance Related Pay

£000

2004-05

2005-06

2006-07

2007-08

2008-09

Corporate performance pay

410

496

538

690

528

Individual performance related pay

130

155

155

161

350

Total staff

523

508

520

508

522

Notes:

The CEFAS performance related pay (PRP) scheme has varied in recent years. It comprises a “corporate performance pay” element payable to eligible staff as well as an “individual performance related pay” (iPRP) element for a smaller proportion of staff. In 2008-09 the weighting of the iPRP element was increased while the corporate pay element decreased. The table shows total costs charged, including CEFAS NI contributions, for both the corporate and iPRP elements. A summary of the 2008-09 scheme allows for:

A Corporate performance element for eligible staff (as per total staff) of 2.2 per cent. of salary, explicitly linked to achievement of agreed agency targets. A further corporate performance “growth” element for all eligible staff of up to 1.3 per cent. of salary could be awarded, this must be self-funded and is explicitly linked to generation of additional income from sources other than DEFRA.

An iPRP element awarded at two levels, 4 per cent. or 8 per cent., for approximately 25 per cent. and 15 per cent. of staff respectively.

2. CEFAS Staff Recognition Schemes

2004-05

2005-06

2006-07

2007-08

2008-09

Staff spot recognition total cost (£000)

12

12

14

14

14

Number of employees/awards

244

244

284

284

278

Staff Spot Recognition Scheme

The scheme is open to all staff, excluding Board Members, and is awarded in recognition of an outstanding piece of work or contribution to CEFAS. The awards are presented as £50 vouchers for M&S and are allocated pro rata across divisions.

Veterinary Laboratories Agency

Staff Suggestions/Innovations Scheme

£

Number of payments

Total value

2004-05

0

2005-06

4

175

2006-07

1

75

2007-08

0

2008-09

2

200

Annual performance payments

£

Number of payments

Total value

2004-05

133

30,777

2005-06

148

35,034

2006-07

162

39,120

2007-08

180

45,357

2008-09

195

47,409

Team Rewards

£

Number of payments

Total value

2004-05

66

4,925

2005-06

78

4,925

2006-07

89

6,175

2007-08

32

1,605

2008-09

31

2,400

Inventors Royalties

£

Number of payments

Total value

2004-05

2005-06

2006-07

2007-08

2008-09

3

2,060

Food and Environment Research Agency

Annual performance payments

£

Number of payments

Total value

2004-05

415

140,000

2005-06

256

131,000

2006-07

256

177,000

2007-08

327

237,000

2008-09

318

253,000

Intellectual Property Awards—rewards innovation and invention

£

Number of payments

Total value

2004-05

0

2005-06

11

4,300

2006-07

6

800

2007-08

32

20,700

2008-09

5

500