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Government Departments: Bonuses

Volume 716: debated on Tuesday 5 January 2010

Questions

Asked by

To ask Her Majesty's Government for each of the last three years for which figures are available, how many people were eligible for performance bonuses and special bonuses in the Department for Work and Pensions and its agencies, by civil service band; how many people received each type of bonus, by civil service band; what the average payment was for each type of bonus, by civil service band; and what the maximum payment was for each type of bonus, by civil service band. [HL1]

There are two pay-related reward schemes operating in the Department for Work and Pensions and its agencies for which all employees are potentially eligible. They comprise end-of-year non-consolidated performance payments and in-year special awards. These are an integral element of the reward package for staff. They help drive high performance in DWP by providing a tangible reward for good performance. The payments must be re-earned each year and, as they are non-consolidated, do not add to future pay bill costs.

End of Year non-consolidated performance payments

DWP employees below the Senior Civil Service are eligible for an annual non-consolidated performance payment if they attain a “Top”, “Higher” or “Majority” rating under the department's annual performance and development system. The actual payment awarded is determined by the employee's pay band and the performance level achieved.

For the Senior Civil Service, end-of-year non-consolidated performance payments are determined by the relevant departmental pay committee in line with the recommendations of the independent Senior Salaries Review Body. The total payments made in respect of each of the last three financial years were as follows:

Financial Year

Total number of recipients

Total Paid (£m)

Average payment

2006-07

116,096

40.68

350.40

2007-08

111,943

36.61

327.04

2008-09

107,726

23.32

216.48

The following tables show these figures broken down by between staff in the Senior Civil Service and those below.

Total below SCS

Financial Year

Total number of recipients

Total Paid (£m)

Average payment (£)

2006-07

115,896

39.01

336.59

2007-08

111,741

34.88

312.15

2008-09

107,518

21.50

199.97

Total SCS

Financial Year

Total number of recipients

Total Paid (£m)

Average payment (£)

2006-07

200

1.67

8,350

2007-08

202

1.73

8,564

2008-09

208

1.82

8,750

Special Awards

Individuals may be awarded a special award either as cash or retail vouchers. These are one-off recognition awards, payable at any time during the performance year, to recognise exceptional achievements beyond what would normally be expected.

Information on special awards paid prior to 2007-08 is not available. The total number of awards made in each of the last two years were as follows (a small number of individuals may have received more than one cash or voucher payment during the year in question).

Cash Payments

Financial Year

Total number of awards

Total Paid (£m)

Average payment (£)

2007-08

11,250

2.70

240

2008-09

14,612

3.04

208

Voucher Payments

Financial Year

Total number of vouchers issued

Total Cost (£m)

Value

2006-07

14,392

0.9

Between £25 and £50

2007-08

31,237

1.77

Between £25 and £50

2008-09

47,121

2.02

Between £25 and £50

Any further breakdowns by grade, beyond those given above, could only be provided at disproportionate cost.

Asked by

To ask Her Majesty's Government for each of the last three years for which figures are available, how many people were eligible for performance bonuses and special bonuses in HM Revenue and Customs and its agencies, by civil service band; how many people received each type of bonus, by civil service band; what the average payment was for each type of bonus, by civil service band; and what the maximum payment was for each type of bonus, by civil service band. [HL3]

HM Revenue and Customs—HMRC—operates two bonus arrangements for delegated grades; a performance bonus tied to the annual performance mark, and a recognition bonus scheme which recognises exceptional in-year performance.

We have provided data for bonuses paid out in 2007-08 and 2008-09. HMRC does not hold the required data for earlier years in an easily accessible format and the information requested could be provided only at disproportionate cost.

Performance Bonuses—In 2007-08 bonus payments were made to top and good performers in respect of performance in 2006-07 on the pay band range maximum, as they had received a lower consolidated pay award. The rate for top performers was 2.6 per cent of their salary as of 31 May 2007. Staff on the maximum of their pay scales who received a good marking received up to 1.27 per cent of their salary as a non-consolidated payment.

In 2008-09 bonuses were only paid to top performers in respect of performance in 2007-08. The rate for top performers was 2.4 per cent of their salary as of 31 May 2008.

Data on 2009-10 bonuses for performance in 2008-09 are not yet available for HMRC. Bonuses are only payable to top performers. The rate for top performers in 2009-10 is 2.6 per cent.

2007-082008-09

Number Eligible for Bonus (1)

Number Awarded

Average Bonus (£)

Maximum Bonus (£) (2)

Number Eligible for Bonus (1)

Number Awarded

Average Bonus (£)

Maximum Bonus (£) (2)

Admin Assistant

13606

8456

168

563

12145

1362

343

460

Assistant Officer

38081

21301

211

674

35361

4173

416

551

Officer

23115

14656

325

855

21621

4358

555

700

Higher Officer

10885

6893

437

1,046

10383

2607

701

856

Senior Officer

3911

2754

582

1,208

3896

1257

872

989

Band T

627

156

496

1,221

621

66

695

996

Grade 7

2297

914

908

1,724

2379

654

1,151

1,421

Grade 6

1097

563

1,123

2,077

1141

445

1,465

1,712

Notes:

(1) Staff are eligible for a performance bonus if they have a performance box mark covering at least 91 days of the preceding year and are still in post at of 1 June when the bonus is due to be paid.

(2) This is the maximum bonus payable to staff on HMRC terms and conditions.

Recognition Bonus' Scheme (RBS)

All staff employed within the year are eligible for recognition under the RBS. Staff may have received more than one bonus payment in a year.

2007-082008-09

Grade

Number of staff receiving RBS payment

Average Bonus paid (£)

Maximum Bonus paid (£)

Number of staff receiving RBS payment

Average Bonus paid (£)

Maximum Bonus paid (£)

Admin. Assistant.

549

174

1,000

557

187

1,000

Assistant Officer

1645

173

1,000

1729

200

1,000

Officer

1178

243

1,500

1472-

262

1,750.

Higher Officer

673

328

1,000

825

348

1,750

Senior Officer

310

415

1,250

396

404

1,750

Band T

8

425

1,000

18

338

2,000

Grade 7

140

476

1,100

194

467

2,500

Grade 6

80

787

5,000

107

646

3,100

SCS

4

£938

£1,800

0

N/A

N/A

Valuation Office Agency

The VOA operates a performance-related bonus scheme under the title of particularly significant contribution award scheme. In conjunction with the annual performance process, the agency also operates a recognition voucher scheme.

Particularly Significant Contribution Award

2007-082008-092009-10

Grade

Number Eligible

Number Awarded

Average Awarded (£)

Maximum Awarded (£)

Number Eligible

Number Awarded

Average Award (£)

Maximum Award (£)

Number Eligible

Number Awarded

Average Award (£)

Maximum Award (£)

AA

724

55

350

350

724

60

350

350

724

52

350

350

AO

524

70

350

350

524

80

350

350

524

62

350

350

EO

1158

75

350

350

1158

85

350

350

1158

92

350

350

HEO

899

123

550

550

899

160

550

550

899

134

550

550

SEO

807

106

550

550

807

105

550

550

807

130

550

550

G7

302

34

750

750

302

39

750

750

302

52

750

750

G6

81

750

750

81

16

750

750

81

17

750

750

Recognition Voucher scheme

2007-082008-09

Grade

Number Eligible

Number Awarded

Average Award (£)

Maximum Award (£)

Number eligible

Number Awarded

Average Award (£)

Maximum Award (£)

AA

724

147

55

120

724

293

53

120

AO

524

167

56

120

524

245

54

120

EO

1158

211

52

120

1158

312

54

120

HEO

899

232

53

120

899

318

64

120

SEO

807

184

33

120

807

219

61

120

G7

302

39

77

120

302

81

76

120

G6

81

15

10

120

81

35

92

120

Senior Civil Servants

Bonus payments for Senior Civil Servants in the Valuation Office Agency are administered and awarded by HMRC.

2007-082008-09

Number Eligible

Number Received

Average Bonus (£)

Maximum Bonus (£)

Number Eligible

Number Received

Average Bonus (£)

Maximum Bonus (£)

HMRC

383

265

8,351

45,000

404

286

8,581

34,594

VOA

8

7

6,943

11,000

13

10

9,820

19,500

Overall

391

272

8,314

417

296

8,623

The maximum bonuses for HMRC SCS for both 07-08 and 08-09 were paid under a fixed term non-standard contract and declared in the appropriate HMRC departmental report. These bonuses related to the same contract and were performance related. The maximum contracted bonus was not paid on either occasion. The calculation used to arrive at the average bonus figure included the maximum bonus.