Departmental Pay

Business, Innovation and Skills written question – answered on 30th March 2010.

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Photo of David Willetts David Willetts Shadow Minister (Education)

To ask the Minister of State, Department for Business, Innovation and Skills how much funding his Department has allocated for bonuses for staff in 2009-10.

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Innovation and Skills), Member, Labour Party National Executive Committee

An element of the BIS overall pay award for staff below the SCS 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. There are two types of award: in-year bonuses, which consist of special individual performance awards and non-pay rewards that recognise strong performance in particularly demanding tasks for situations. Staff in receipt of a special bonus may also receive an annual performance award. Annual performance awards are paid to members of staff who receive a highly successful performance rating.

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.

Performance awards for the SCS are part of the pay system across the whole senior civil service, and are used to reward high performance sustained throughout the year, based on judgments of how well an individual has performed relative to their peers. The performance related pay scheme is designed to help drive high performance and support better public service delivery. Performance awards are non-consolidated and non pensionable. 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.

BIS was formed through a MOG change that occurred in June 2009. The Department was created by merging the Department for Business Enterprise and Regulatory Reform (BERR) and the Department for Innovation, Universities and Skills (DIUS). Due to the timing of the MOG change it was decided that both Departments would continue with separate remits for 2009-10 before producing a single BIS remit for 2010-11. The two former Departments have allocated the following amounts of money for performance awards in 2009-10:

Department Amount of money allocated for "in year" performance awards Amount of money allocated for annual performance awards Total amount of money allocated for performance awards in 2009-10
BERR 427,578 931,300 1,358,878
DIUS Currently unavailable 280,756 n/a

1. The data included covers all staff below the SCS.

2. For the SCS the Senior Salaries Review Body determines the level of expenditure to cover bonuses.

3. The DIUS data for the "in year" performance award budget is currently unavailable as these are held locally at an individual group level. The "in year" performance bonuses that were awarded in 2008-09 totalled £13,855.

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