No bonus payments for Senior Civil Servants

Finance Minister, Sammy Wilson, today announced that senior civil servants would not be receiving any bonus payments this year.

Announcing his decisions on the 2009 pay award for senior civil servants in the Northern Ireland Civil Service, the Minister said: “I know that there has been a lot of public debate and controversy about senior civil service pay generally, and bonuses in particular. I have given this matter very careful consideration and, taking account of all the relevant factors, have decided on what I believe to be a very fair package, but one which does not include any bonus payments.

“In light of the significant pressures on public finances and the very real difficulties facing the wider economy, I believe it would not be appropriate to include bonus payments in this year’s pay award to senior civil servants. As a result, the package which I have decided will cost £1.1million less than if the Northern Ireland Civil Service had applied the pay award made to senior civil servants in Great Britain. This is a considerable saving to the taxpayer."

The Minister also announced that he is freezing senior civil service pay bands at their 2008 levels, with no cost of living increase at the bottom or top ends. The pay award will cover the 220 most senior civil servants in Northern Ireland in the Assistant Secretary, Deputy Secretary and Permanent Secretary grades.

The Minister continued: “At an overall cost increase of 3.5%, the award to senior civil servants is also slightly below recent awards for the rest of the civil service, but nevertheless allows me to reward senior civil servants for the vital work that they do in supporting Ministers in the Executive and in delivering public services. It has also allowed me to make inroads into addressing some of the structural problems with the senior civil service pay system by dealing with poor pay progression.”

Over a number of years annual pay awards to senior civil servants have included a combination of a basic pay award and a performance related bonus. Whilst base pay awards have been falling, the proportion paid in the form of one-off bonuses has been increasing. This model was again applied in Great Britain this year as part of the 2009 pay award, and the Minister’s decision will therefore mean that senior civil servants in Northern Ireland will be the only ones in the United Kingdom who will not have access to the system of bonuses.

The Minister said: “I know this decision will come as a disappointment to senior staff in NICS but I would want to emphasise that it does not mean that I do not value their commitment and dedication. Rather it reflects the very difficult economic climate we find ourselves in where we must all make sacrifices for the greater good.

“This decision affects only senior civil servants but I intend raising with my Executive colleagues at an early opportunity the subject of bonus payments in the wider public sector.”

Notes to Editors:

1. There are approximately 220 senior civil servants in the 11 Departments of the Northern Ireland Civil Service.
2. In recent years senior civil servants in Northern Ireland have tended to receive annual pay awards broadly in line with those received by their counterparts in Great Britain. These awards are based on recommendations made by the Senior Salaries Review Body, which is an independent body set up to provide advice to the Government on the pay of senior public servants.
3. Senior civil servants are treated as a single group for pay purposes, with a separate pay system and process for making annual pay awards from the rest of the civil service.
4. The 2009 pay award for senior civil servants is due with effect from 1 April 2009 and relates to the performance period April 2008-March 2009.
5. In 2008/09 the total pay bill for senior civil servants was £15million. In 2008/09 the total amount of non-consolidated bonus payments made to senior civil servants in Northern Ireland was £1.2million.
6. The 2009 pay award for senior civil servants in the civil service in England, Scotland and Wales included a bonus pot representing 8.6% of the total pay bill to be distributed to approximately 75% of senior civil servants.
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