§ Mr. John Marshall
To ask the Chancellor of the Exchequer if he will make a statement about the impact of performance-related pay.21W
§ Mrs. Gillian Shephard
Performance-related pay in the form of additional increments depending on assessment in annual reports now covers the vast majority of civil servants. Managers in departments have generally welcomed the introduction of performance-related pay as a means to attract and retain quality people and to motivate them to produce high sustained performance.
There are other ways in which pay is related to performance in the civil service. There is a special bonus scheme which departments can use to reward individuals or groups for particular achievements. In addition a number of agencies have introduced group bonus schemes which pay bonuses if staff beat targets for efficiency savings. Also the majority of industrial civil servants are covered by bonus schemes. All these schemes are designed to encourage efficiency and motivate staff.