§ 37. Mr. Eggarasked the Minister for the Civil Service if he will make a statement on progress introducing merit pay within the Civil Service.
§ Mr. HayhoeAs I told the House on 5 December, a scheme for performance bonuses is being introduced for an experimental period of three years. The necessary arrangements are now being made.
§ Mr. EggarHas my hon. Friend noted reports about the slowness of the introduction of merit pay? Is he not worried about the number of high-fliers who are leaving all Departments in Whitehall? Does he believe that morale would be improved if he moved speedily towards introducing merit pay and linking it with a more fluid promotion system?
§ Mr. HayhoeThe scheme is planned to start in April, which means that payments will not be made until much later in the financial year 1985–86. I assure my hon. Friend that there is no dragging of feet on this issue. On the wider questions that he raised about early leavers and promotion prospects, our proposals for merit pay will assist in retaining the services of some who might otherwise leave.
§ Dr. McDonaldIs the Minister aware that the Civil Service has been characterised by openness about pay and promotion? Will he confirm that the merit awards will be given to unnamed individuals? If so, will he explain what possible justification there is for secrecy over such merit awards?
§ Mr. HayhoeIndividual payments will not be published, but the criteria by which Departments will decide upon those payments are being discussed with the Council of Civil Service Unions, and I want them to be published Mrs. Kellet-Bowman: Has my hon. Friend had the benefit of studying the way in which merit awards work in Canada, where they prevented the early leaving of high-fliers and gave much job satisfaction to civil servants?
§ Mr. HayhoeI was not aware of the circumstances to which my hon. Friend refers, but I am delighted to have her assurance that this will be a helpful scheme with regard to the early leaver problem.