Pay

Department for Energy and Climate Change written question – answered on 23rd February 2015.

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Photo of Caroline Flint Caroline Flint Shadow Secretary of State for Energy and Climate Change

To ask the Secretary of State for Energy and Climate Change, how much was paid by his Department to its staff in each of the last four years in (a) performance-related payments and (b) other payments, allowances and benefits in addition to their core salary; how many and what proportion of officials received such payments; and what the monetary value of the 10 largest payments made in each such year was.

Photo of Amber Rudd Amber Rudd The Parliamentary Under-Secretary of State for Energy and Climate Change

The Department of Energy and Climate Change (DECC) uses performance related pay to help drive high performance and to recognise exceptional contributions and achievements over and above what is expected of people in fulfilling their employment contracts. These payments, which are in-line with HM Treasury pay guidance, are cost effective as they are not consolidated into staff’s basic pay and have to be re-earned every year.

All staff in the Department are eligible to receive performance in-year and end-of-year rewards.

End-year non-consolidated performance awards are used to reward the department’s highest performers as assessed in their end of year appraisal reports.

In-year awards are used to recognise and incentivise corporate behaviours and values which might not be fully reflected in a performance appraisal report. These may be used to reward staff for exceptional pieces of work or taking on additional responsibilities.

Only the top 25% of Senior Civil Servants received a non-consolidated performance award and the maximum amounts were limited in line with cross-Government guidance.

In order to improve efficiency while remaining accountable to the UK taxpayer, as well as to satisfy the requirements of the right to public data, the Department for Energy and Climate Change (DECC) regularly publishes information in the public domain on where and how money is spent – for example www.data.gov.uk shows who does what in the Department and its public bodies and how much they are paid (6 monthly), pay multiples are also included in the Annual Accounts and in line with the transparency agenda the Department discloses salaries at and above £150,000:

http://reference.data.gov.uk/gov-structure/organogram/?dept=decc&post=1.

The data for non-consolidated performance related payments for the last four year is available on the DECC website at https://www.gov.uk/government/collections/decc-non-consolidated-performance-related-payments, as required by Cabinet Office

(a) Other payments, allowances and benefits in addition to staff core salary; how many and what proportion of officials received such payments; and what the monetary value of the 10 largest payments made in each such year.

A breakdown of this data is enclosed in tables below

Table 1

Period

Feb 2011- Jan 2012

Feb 2012- Jan 2013

Feb 2013- Jan 2014

Feb 2014- Jan 2015

Allowance payments (£)

£2,304,678

£2,711,421

£3,034,422

£3,566,443

Headcount

1170

1286.01

1432.66

1519.93

Number of staff receiving an allowance

392

437

494

572

%

34%

34%

34%

38%

Table 2

Period/Amount of payment

Feb 2011- Jan 2012

Feb 2012- Jan 2013

Feb 2013- Jan 2014

Feb 2014- Jan 2015

1

£35,998

£37,790

£39,500

£39,500

2

£35,808

£36,358

£36,000

£36,000

3

£34,891

£35,185

£34,600

£34,600

4

£34,836

£34,891

£32,000

£32,000

5

£30,812

£31,121

£34 891

£27,000

6

£30,713

£28,632

£24,000

£24,000

7

£28,348

£22,848

£23,000

£23,000

8

£27,264

£22,553

£17,000*

£17,000*

9

£22,621

£22,235

£16,000**

£16,000**

10

£22,235

£20,359

£15,000

£15,000

The above amounts reflect the exceptional positioning of the Department with the majority of these (except the ones marked otherwise) relating to the Departments aspiration to secure delivery of its challenging Oil and Gas agenda.

1. Because of the unique circumstances presently found in the oil and gas industry, the Department agreed with the Cabinet Office and Treasury to make new, targeted, non -consolidated, non-pensionable market-related recruitment and retention allowances available to its oil and gas specialists. These allowances were determined by the following factors:

2. The total reward package – which must be affordable, evidence-based and informed through pay surveys (around the market median) that reflects the oil and gas “service market” (e.g. suppliers) and not the “operators market” (e.g. BP, Shell etc.) in line with the department’s position is that it is neither appropriate, nor sustainable to align with the “operators”

3. Reward principles such as the Public sector pay policy, affordability and practice within the Civil Service, the oil and gas specialist know-how and skills that require any pay enhancements and provides for performance-based pay progression.

4. That any pay arrangements for these specialists must be informed by a national recruitment market (that is UK-wide), while recognising that Aberdeen provides a unique concentration of oil and gas specialist workers.

*Commercial Specialist Ring-fenced Allowance

As an integral part of the review of commercial skills within the Department, linked directly to Lord Deighton’s work to improve the commercial capability within key infrastructure Departments, DECC also received an exceptional approval from Cabinet Office and Treasury to introduce variable non-consolidated, non-pensionable Pay enhancement of up to a maximum £17,000 to a limited number of predefined roles, all of which are on two year fixed-term contracts, which have been identified as business critical and at high retention risk.

** Pivotal Role Allowance

There is also a small number of staff who are in receipt of Pivotal Role Allowance as per the recommendation of the SSRB to address recruitment and retention issues for critical roles such as Senior Responsibility Officers.

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