Public Sector Bonuses To Face Crackdown After RBS Payouts Row

Public Sector Bonuses

First Posted: 13/02/2012 10:59 Updated: 13/02/2012 11:04

Ministers have ordered a crackdown on public sector bonuses following the uproar over six figure sums awarded to senior bankers.

According to the Daily Telegraph, cabinet office minister Francis Maude and chief secretary to the Treasury Danny Alexander have written to all Whitehall departments telling them to reassess how they award bonuses to senior mandarins.

"This is not about getting rid of performance pay. It is about making sure that performance pay is there for genuine excellence and not just run-of-the-mill performance," Alexander told the paper.

The paper reports that the change could also affect executives at organisations that are partially publicly owned such as the Royal Mail and the BBC, which will soon appoint a new director general.

The letter states: "The departments will need to apply their own judgment on which bodies to include in the audit but where in doubt, will need to include bodies that are likely to attract public comment."

Whitehall civil servants secured bonuses worth more than £105m in 2010-11 the Independent reported last week.

Jeremy Beeton, the director general for the Government Olympic Executive, pocketed at least £130,000 on top of his £225,000 salary, it said.

The move comes as public sector workers, including civil servants, face a pay freeze and a squeeze on their pensions.

Stephen Hester, the chief executive of taxpayer-backed RBS, recently turned down a near £1m bonus in the face of political and media pressure.

But other executives at the bank are inline to receive substantial bonuses after the Treasury said it would not micro-manage payments at the bank.

Labour leader Ed Miliband has said bonus restraint should extend beyond publicly backed institutions and be applied across the private sector.

While Downing Street has warned that too heavy an attack on bonus culture in the City risks driving crucial financial service industry companies out of the UK.

FOLLOW HUFFPOST UK POLITICS

Ministers have ordered a crackdown on public sector bonuses following the uproar over six figure sums awarded to senior bankers. According to the Daily Telegraph, cabinet office minister Francis Ma...
Ministers have ordered a crackdown on public sector bonuses following the uproar over six figure sums awarded to senior bankers. According to the Daily Telegraph, cabinet office minister Francis Ma...
Filed by Ned Simons  | 
 
 
  • Comments
  • 66
  • Pending Comments
  • 0
  • View FAQ
Post Comment Preview Comment
To reply to a Comment: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to.
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
10:15 PM on 02/14/2012
Do the labour party, the FSA, and banks even realise
what damage they have done too this country.
It beggars belief.
There would be a revolution in any other country.
wes
This user has chosen to opt out of the Badges program
Mickey Mouse 1
There are no lies or deceit on a chess board.
12:45 PM on 02/14/2012
More than 400 MP's out of 650 MP's were found to be fiddling their expenses, including Gordon Brown , David Cameron and Nick Clegg. The MP's who were jailed for fiddling only served a fraction of their sentences. How is this supposed to restore the public confidence?
06:28 PM on 02/14/2012
The figures are disgusting, as are the sentences.
You know the old saying though, dont do as i do,
do as i say.
What chance have we got, the blind leading the blind,
or should i say the crooks, leading the crooks.
wes
This user has chosen to opt out of the Badges program
Mickey Mouse 1
There are no lies or deceit on a chess board.
07:30 PM on 02/14/2012
If they can strip Fred Goodwin of his knighthood, they can also rid the Lords of arsonists, thieves and crooks too.
This user has chosen to opt out of the Badges program
Mickey Mouse 1
There are no lies or deceit on a chess board.
12:38 PM on 02/14/2012
Government pay and bonuses should be slashed. It's obscene that high ranking officials should be walking away with £million pension pots paid for by the taxpayer or by the licence fee payer.It is also obscene that quango bosses can get away without having to pay the full amount of tax. The BBC is just another bloated, overpaid government department.
04:25 PM on 02/13/2012
The government seems to have decided to get it's own back on the public sector workers who are now standing up against the NHS 'Reforms' and the only way it see's it can do this by setting the public against the workers.....

Having seen the outcry over big banker bonus culture the government is now saying it is going to sort out the bonus's in the public sector but have you noticed it has yet to say how much these bonus's are worth or what is the highest figure paid and to who.....apart from the guy in charge of the 'Olympics'

They have just come out the 'generic' term public sector which everyone knows include many of the lowest paid workers in Britain...If they really meant the 'Civil Service' why not just say so?
HUFFPOST SUPER USER
Allyb999
05:23 PM on 02/13/2012
Never had a bonus as a public sector worker, maybe you have to be special to get one?
03:48 PM on 02/13/2012
I must be stupid then... i didnt believe that public sector managers got bonus's as well.... this is a disgrace. Just how incompetent are these sucessive governments that allow this to happen when the rest of us poor sods are struggling to fill the shopping bag and the car every week... You couldnt write this BS.
04:07 PM on 02/13/2012
Believe me, they do! And it's usually on the backs of the front line workers. I never quite understood why managers needs incentives above they pay they accepted when the joined the job but everyone else's incentive is called "Doing the right thing". Democracy is slipping away from us, not at a political level but due to huge international corporations dictating the policies that government set.
03:38 PM on 02/13/2012
I get a bonus every year anything from £1 to £1300 a year so does this mean the goverment are going to stop my bonus .I am not lucky enough like mps who have expense's who can claim on houses fuel second homes light bulbs etc etc i have to live of mine , the bonus is part of my wages .The private sector is what it says so the goverment can butt out as they make enough mess as it is.
04:09 PM on 02/13/2012
I suppose the question is. If they made your bonus a permanent part of your wage, would you work less harder on the grounds you don't get a bonus..
HUFFPOST SUPER USER
Allyb999
05:25 PM on 02/13/2012
So how about the private sector getting bailed out to the tune of many many billions by government? Or government incentives to companies to locate at certain location?
03:36 PM on 02/13/2012
Watch this story develop. Who will lose their bonuses? It won't be the senior people, it will be the lowest paid public sector workers who will lose out.
HUFFPOST SUPER USER
Allyb999
03:42 PM on 02/13/2012
Low paid public sector don't get a bonus so no fear of losing it.
03:48 PM on 02/13/2012
No they don't get bonuses...they'll just lose their jobs to leave more money for the managers.
07:55 PM on 02/13/2012
No, they will just be screwed to pay for the bosses bonus, that's how they will lose out
photo
HUFFPOST SUPER USER
Nathan0316
TrueBlueTory Age quod agis
03:17 PM on 02/13/2012
Bonuses are are what they sound like. A "bonus" should only be paid out if something above and beyond expectations has been achieved. However, if that is what has happened, then the bonus should be paid, without fuss, because that's what it's for. An encouragement to people to work harder, try something new and increase overall performance, not just show up Mon-Fri, 9-5, and expect to get it anyway.

If you remove the bonus structure, then you will have a situation where nobody does anything, because, why bother? You only have to look at Communist Cuba, Russia or China to see what happens when you pay everyone the same, regardless of the amount of work put in. There was a documented case in the Russian Post Office, where a letter took three weeks to be moved from one side of the building to the other. When quizzed about it, the staff member responsible shrugged and said "As long as they pretend to pay me, I'll pretend to work."

I don't think either side has it right at the moment. I can't believe it's possible that the Director-General of the BBC should recieve a huge bonus, but whoever came up with Downton Abbey or Call The Midwife certainly deserve some recognition. Look at football, get into the Champions League, make half a million quid like Harry Redknapp, or lose a game 5-1 and get the sack like Mick McCarthy. Big risks, big rewards or big failure.
HUFFPOST SUPER USER
Allyb999
03:43 PM on 02/13/2012
No pay people a decent wage if they work well they keep their job if they don't they lose it, much better incentive than a bonus.
04:38 PM on 02/13/2012
Pay people a decent wage , yes . But Performance related pay can have its uses provided it is accompanied by quantifiable objectives and targets and a robust appraisal system. If PRP is in place it should aply to all employees in a fair way and not just the chosen few.
04:12 PM on 02/13/2012
Once upon a time. "something above and beyond expectations" was called, A Promotion!
HUFFPOST SUPER USER
fredro
02:13 PM on 02/13/2012
What do you mean 'shifts focus'? I'm not particularly aware the the Coalition has done much about private sector bonuses; and they've been public-sector-bashing from day one.
03:15 PM on 02/13/2012
The clue is in the word "private". Let private business sort itself out. It is not necessary for anyone other than the owners/shareholders to get involved. Public sector should be held accountable as its our money. The private sector is as it says.
HUFFPOST SUPER USER
Allyb999
03:48 PM on 02/13/2012
Yet when "private sector" ie the bankers ruin the economy we are all in it together. Explain that one to me then, since they are not suffering but I am?
04:23 PM on 02/13/2012
Of course they should be accountable. Half the banks still exist because of "our money". 200 odd billion pounds of quantitative easing. Guess who's money that is. 4 billion pounds a year into national railways [classed as a private company with share hoders] Would you like me to continue........
01:51 PM on 02/13/2012
Tit for tat i fear, at the same time abuse or
OTT payments must be dealt with.
My question is, how did it take so long.
wes
This user has chosen to opt out of the Badges program
01:09 PM on 02/13/2012
The bonus system seems to have been a way of 'hiding' obscene rates of (and increases in) pay from the general public (much like the parliamentary expenses system). The people at the sharp end, who actually do the work, see little or none of this money because they are required to do their jobs (often with the rquirement of 'exceeding customer expectation') for the specified amount of money. Isn't it about time these Onanists had to do the same?
01:09 PM on 02/13/2012
Bad Policies and bad people only get away with it because the good people allow them to get away with it. Have the courage to stand up and be counted. United we stand divided we fall. Join together in peaceful protest and make it clear to politicians that you demand a good standard of living if you are working hard all week. It's no good just moaning about the situation you have to make the effort to do something about it. Write to your MP, make the effort to join peaceful protests and then the Politicians can't just say that there were only a small number of protestors and therefore most people in Britain are happy with their lives and government policy. Democracy is meaningless unless the public are prepared to take peaceful protest action.
01:55 PM on 02/13/2012
I agree, bad people get away with it because
they are all in it together.
You scratch my back, ill scratch yours,
as the saying goes.
wes
05:11 PM on 02/13/2012
If you want taxpayer funded services, you have to pay for them. Without them, think how much more money we would all have in our pockets. But if all social welfare benefits, for instance, were scrapped, who would be the first to complain? If government finances were controlled and we had an economy that was in balance then your standard of living would be largely up to you!
12:57 PM on 02/13/2012
I think Huffington Post are trying to stop the general public in Britain from organising a mass peaceful protest because sometimes they block my postings for no good reason.
01:58 PM on 02/13/2012
There are wheels within, we only think we are free.
big brothers watching.
wes
This user has chosen to opt out of the Badges program
photo
02:57 PM on 02/13/2012
Correct Wes...im not allowed to fan some people on here.
12:51 PM on 02/13/2012
Meanwhile - the Politicians and the Rich generally just go on with their own privaledged lives regardless of the plight of the low paid. The rich are all still smiling in this crisis, going to their posh restaurants, the theatre, posh cars, posh houses, posh holidays, etc., whilst the low paid workers are sitting in their houses with no money to go out/have a break from their slave labour lives. The British people need to get more militant and demand that the wealth that is created by the hard work of the workers is more evenly shared out. The pay differences in Britain are too extreme, the gap is too wide.
01:20 PM on 02/13/2012
Trouble is things what be a lot easier for the Tories if the poor were a lot poorer. They must be breaking their back to find a way around the minimum wage. Although "welfare for work" appears to be a good start! All thats left then is the child labour laws and we can be back to the bad old days of brutal mill owners and medieval terms and conditions for ordinary workers. For those that think they are beyond these changes with company cars and company health insurance, think again. They may be starting at the bottom but they will work their way around to you eventually. Nobody is safe!
HUFFPOST SUPER USER
halingei
01:59 PM on 02/13/2012
Anyone who goes on about, 'Tories', 'Libs', 'Labs', has no idea what the game is!
They're all the same and concentrating on them is a mere distraction. Raise your eyes from the gilded gutter that these creatures live in and see what's really going on!
photo
HUFFPOST SUPER USER
Norman Mitchison
12:33 PM on 02/13/2012
What about GLC who supported Eds leadership campaign with £25k and earn millions in bonuses? Is he condoning their payouts........