Senior civil servants who deliver exceptional results could receive significantly higher performance bonuses, potentially worth tens of thousands of pounds, under a major new plan to reform Whitehall. The initiative, led by Sir Keir Starmer's chief secretary to the Treasury, Darren Jones, aims to inject private-sector-style practices into the heart of government.
Rewarding 'The Doers, Not The Talkers'
In a speech today, Darren Jones – often described as the Prime Minister's 'enforcer' – will promise to fundamentally shift the culture of Britain's civil service. He will pledge to reward 'the doers, not the talkers' and create a state capable of 'moving fast and fixing things'. This comes after an admission that the public sector has 'fallen unacceptably behind' private companies in efficiency and delivery.
The centrepiece of the reform package is a radical overhaul of the bonus system. Currently, more than half of all senior civil servants receive performance-related payments, typically around £1,000 for good performance. Some directors-general can get up to £12,500. The new plan intends to focus the bonus pot more tightly, offering higher payments to a smaller number of top performers, with the best potentially earning much more.
Facing Union Opposition and Performance Challenges
The proposals are likely to meet fierce resistance from Whitehall's powerful trade unions, which have historically opposed such performance-linked pay reforms. However, Mr Jones will argue that change is essential and that he is determined to work with unions to 'renew the state'.
The drive for reform is underscored by stark performance management statistics. Last year, out of 6,700 senior civil servants, only seven were placed on formal performance improvement plans, and a mere two were dismissed for poor performance. Labour has also signalled its intent to make better use of technology and to remove failing staff more effectively.
Conservative shadow Cabinet Office minister Alex Burghart was quick to criticise, stating: 'Under Labour, the Civil Service is growing in size and cost, whilst new quangos are being created by the day. Ministers just don't have a grip on Whitehall.'
A Digital State and New Training
Beyond bonuses, Darren Jones's vision includes a significant digital transformation. He is tasked with overhauling civil service operations through increased technology use, including the Government's digital ID scheme. In his speech, he will ask: 'The public rightly ask, if you can bank and shop online, in a quick and convenient way, then why can't it be done for public services too?'
The reform package also includes:
- Creating new, permanent taskforces modelled on the successful Covid-19 vaccine taskforce, to operate in 'peace time' as well as during crises.
- Establishing a new 'national school of government and public service' to train officials in digital skills.
- Focusing new training courses on key areas like artificial intelligence.
The push for higher bonuses arrives amid a contentious climate of tightened public budgets. It was recently revealed that Ministry of Defence civil servants received £57 million in bonuses last year – £25 million more than in 2019 – despite the department facing severe budget cuts and escalating global threats. Since 2019, MOD bonus payouts have totalled £200 million.
This revelation follows warnings to the Prime Minister from defence chiefs about a £28 billion military funding black hole, raising questions about spending priorities at a time of heightened international tension.
