Source · Select Committees · Public Accounts Committee

Recommendation 8

8

Some functions, such as the Commercial function, have introduced pay flexibility in order to try...

Conclusion
Some functions, such as the Commercial function, have introduced pay flexibility in order to try and increase recruitment of specialists. The Cabinet Office told us that the use of flexibilities in the Government Commercial Organisation had been an effective way to bring in external talent and to consolidate internal talent. It said the turnover rate within the Commercial function had fallen from 25% to 7%, a figure that is lower than the average rate of turnover within the civil service. The Cabinet Office believes this marks a dramatic improvement in the rate of retention and that the pay arrangements introduced have successfully encouraged staff to remain in the civil service.17
Government Response Not Addressed
HM Government Not Addressed
2.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2021 2.2 The Cabinet Office confirms that all matters related to pay for grades below the Senior Civil Service (SCS) are delegated to departments. Functions have introduced measures to address pay disparities by, for example, establishing robust pay exception case processes. 2.3 The Cabinet Office reviews SCS pay across functions and professions through the Senior Salaries Review Body (SSRB) evidence each year. HM Treasury promotes the use of Pivotal Role Allowances as an effective tool for retaining members of the SCS in highly specialised roles including those delivering the riskiest major projects across government, providing extra flexibility to departments and functions when it comes to pay. 2.4 The Cabinet Office reviews the use of SCS pay exceptions on an annual basis (the next review is due in Summer 2021) to ensure the policy is being used appropriately. Most functions already play an active