§ Lord Kennet
asked Her Majesty's Government:
Whether they intend to introduce performance related pay into the Civil Service; and, if so, how, in terms of what, at what stage of policy implementation the peformance is to be evaluated, and by whom. [HL4584]
§ Lord Falconer of Thoroton
Performance related pay was first introduced into the Senior Civil Service in 1987 and to groups within the wider Civil Service in 1988. A condition of the delegation of pay to departments and agencies in 1996 required that all pay increases should be related to performance.
The 1999 Modernising Government White Paper described the Government's work on changes to current systems to ensure that pay is used more creatively to provide effective incentives—and minimise disincentives—for sustained high quality performance and particularly to encourage innovation, risk-taking, mobility, cross-cutting thinking collaborative working and service delivery. We are also looking for new ways of rewarding organisational performance and success-sharing in the Civil Service, for example, by using team bonuses or by linking rewards to the achievement of performance or efficiency improvements.