Non-consolidated performance payments are an integral element of the staff reward package in the Home Office. They encourage and reward high performance. As non-consolidated payments, they have to be re-earned each year and do not add to future pay bill costs, for example pensions costs.
The Home Office (including the UK Border Agency), as part of its annual pay arrangements, pays non-consolidated performance related payments to up to 35 per cent. of its staff. There are separate arrangements for the Department’s senior staff, which are set by the Prime Minister for the whole senior civil service, following independent advice from the Senior Salaries Review Body.
In the financial years for which data are available the total salary bill for staff in the Home Office and UKB and the proportion of which was paid in non-consolidated performance payments was:
Total salary bill Non-consolidated payments 2005-06 752 4.28 2006-07 723 4.45 2007-08 710 4.48 2008-09 791 4.75
Total salary bill
It is also possible to give one-off non-consolidated special payments to members of staff in-year to reward exceptional achievements on a project or programme. The total cost of such payments in 2008-09 was £1.16 million the figure for 2007-08 was £2.56 million.