Departmental Pay

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

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Photo of Lee Scott Lee Scott Conservative, Ilford North

To ask the Minister of State, Department for Business, Innovation and Skills how much has been paid in bonuses to civil servants in his Department in each year since 2003.

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 judgements 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 Machinery of Government 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). DIUS and BERR were themselves created as part of a Machinery of Government Change in June 2007. This means that BIS in its current format did not exist to award performance awards in previous years. The information as follows has been drawn from various data sources and provides details for both of the former departments that were merged to create BIS.

Financial year BERR DIUS
2008-09 2,827,223 473,026
2007-08 2,958,888 207,041
2006-07 3,023,849 (1)-
2005-06 2,330,532 (1)-
2004-05 2,061,772 (1)-
2003-04 2,026,477 (1)-
(1) DIUS was created by a MOG change that occurred in June 2007 and did not exist before this date. The majority of annual bonuses paid to staff in 2007/08 were issued by the departments that staff had transferred from.

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