UK government introduces performance bonuses for senior civil servants
Senior staff to receive 2.5 per cent base rise with 1 per cent withheld for bonuses, while majority get 3.5 per cent increase
The UK government has announced a new pay structure for senior civil servants, introducing performance-related bonuses for the first time to reward high achievers. Under the plan, senior staff will receive a base pay rise of 2.5 per cent, with 1 per cent withheld to fund bonuses for top performers. The majority of civil servants will receive a 3.5 per cent pay rise.
Cabinet Office minister Darren Jones stated the initiative aims to reward “doers, not talkers” and rewire the civil service. The government rejected the pay review body’s recommendation for a uniform 3.5 per cent increase for senior staff, opting instead to retain cash for bonuses. An uplift of £5,000 will be applied to the lowest band of senior civil servant pay.
Jones described the move as part of a broader ambition to “rewire” the civil service, announced in January, to encourage excellence and improve delivery. The government aims to create savings of £2bn a year by 2030 through these reforms. Jones said the changes are a step toward ensuring Westminster decisions are followed through in local communities.
The union FDA welcomed the move as addressing long-standing issues with pay progression but noted that improvements for the wider civil service have not yet been secured. Union representative Lauren Crowley highlighted that pay systems have suffered from a lack of meaningful pay progression for nearly two decades. She noted that while the changes address senior ranks, progression for the majority of membership remains unsecured.
Prime Minister Keir Starmer is facing pressure to demonstrate delivery amid potential leadership challenges from figures such as Wes Streeting and Andy Burnham. The concept of performance-related pay for senior civil servants was previously announced as a trial by the Conservative government before the last election. The Labour government has since championed the idea, with Jones pledging in January to bring in bonuses for top performers across senior ranks.