An element of DEFRA's overall pay award is allocated to non-consolidated variable pay related to performance. These payments are used to drive high performance and form part of the pay award for members of staff who demonstrate exceptional performance, for example by exceeding targets set or meeting challenging objectives.
Non-consolidated variable pay awards are funded from within existing pay bill controls, and have to be re-earned each year against pre-determined targets and, as such, do not add to future pay bill costs. The percentage of the pay bill set aside for performance-related awards for the SCS is based on recommendations from the independent senior salaries review body.
The following sections set out the estimated spend on non-consolidated performance payments for the 2009-10 financial year.
CORE-DEFRA—Including staff in Animal Health, Veterinary Medicines Directorate and the Marine and Fisheries Agency
The wages/salary budget for 2009-10 is £200.25 million, of which non-consolidated performance payments represents an estimated 1.5 per cent.
Rural Payments Agency
The wages/salary budget for 2009-10 is £99.3 million, of which non-consolidated performance payments represents an estimated 0.5 per cent.
Centre for the Environment and Aquaculture Science
The wages/salary budget for 2009-10 is £20.46 million of which non-consolidated performance payments represent an estimated 3.9 per cent.
Food and Environment Research Agency
The wages/salary budget for 2009-10 is £31.42 million, of which non-consolidated performance payments represent an estimated 1.25 per cent.
Veterinary Laboratories Agency
The wages/salary budget for 2009-10 is £41,143,891.11, of which non-consolidated performance payments represents an estimated 0.472 per cent.
CEFAS has relatively higher non-consolidated pay when compared as a percentage against the DEFRA Network, because they have specifically worked to structure a total rewards package with a greater non-consolidated pay element that is directly performance based and must be re-earned each year. This places a greater link between performance and reward and while their percentage of non consolidated pay is larger than others this is more than offset by their consolidated pay (i.e. salaries) which is low relative to the DEFRA Network and Whitehall.