An element of the overall pay award for the Home Office 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 of 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 and pension costs. The percentage of the pay bill set aside for performance-related awards for the Senior Civil Service is based on the recommendations of the independent Senior Salaries Review Body.
Non-consolidated end-of-year performance payments made in the 2009-10 financial year (in relation to the 2008-09 performance year) amounted to £5.69 million, (0.69 per cent. of the estimated total salary provision for the 2009-10 year). Up to 0.3 per cent. of the pay bill for the current year is allocated for the purpose of non-consolidated special payments to reward exceptional in-year performance.