§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer for what reasons he has introduced performance-related pay into the public service.
§ Sir George YoungPerformance-related pay helps to support the Government's citizens charter objective to establish a regular and direct link between the contribution made by individuals to the standards of service provided, and their reward. First, it is fair, because it rewards those who have made the greatest contributions. Secondly, more flexible pay systems help to achieve a more effective distribution of resources. Thirdly, performance-related pay focuses effort on the delivery of key objectives by reinforcing an organisation's performance management system.