Under the delegated pay arrangements for staff outside the Senior Civil Service (SCS), departments and agencies must have reward systems that include a close and effective link between pay and performance. Detailed information on performance payments is not collected centrally, but data that are held indicate that the cost is approximately 1 per cent of the total pay bill.
For the SCS, performance payments are used to incentivise staff to deliver business objectives successfully. Reward arrangements for the SCS, including the size of the non-consolidated performance pay pot, are based on the recommendations of the independent Senior Salaries Review Body (SSRB). In 2007-08, 7.6 per cent of the SCS pay bill was available as non-consolidated payments. Only 7.1 per cent of the pay bill was spent in this way, equating to £23.1 million. In his Written Ministerial Statement of 17 June 2008, my right honourable friend the Prime Minister accepted the SSRB's recommendation that 8.6 per cent of the SCS pay bill be made available as non-consolidated payments in 2008-09. These payments have not yet been made.