The UK government has unveiled plans to “fundamentally reshape” the civil service by incentivising underperforming employees to leave their roles, while linking the salaries of top officials to their performance. Cabinet Office minister Pat McFadden stated that the current structure is not “match-fit” for the country’s needs and must be reformed to improve efficiency.
These changes are part of a broader set of reforms expected to be detailed next week, alongside an upcoming intervention by the prime minister. One key proposal includes a “mutually agreed exits” process, which would encourage civil servants who are not meeting performance expectations to leave voluntarily. Senior officials failing to improve after being placed on development plans could face dismissal within six months. Additionally, the most senior figures in the service will have their pay directly tied to their performance outcomes.
McFadden emphasized that the civil service must be focused on delivery and efficiency, stating that the government’s plan is to create a workforce where “every official is high performing.” He explained that those who contribute effectively should be incentivised and rewarded, while those who do not must “move on.”
The move comes at a challenging time for the Labour government, which has struggled in the polls and faced criticism over its performance. Ministers believe the civil service must be not only leaner but also more adaptable, with McFadden keen to shift resources from administrative roles to frontline public services. While he ruled out using “crude headcount targets” as a measure of efficiency, he did highlight that staff numbers have increased by 15,000 over the past two years.
The government also plans to digitise more public services and employ additional staff in key roles. However, the proposed reforms have drawn criticism from unions. Dave Penman, general secretary of the civil servants’ union FDA, dismissed the announcement as a “soundbite” lacking a credible plan for real change. He warned that expecting improved performance while simultaneously cutting resources is unrealistic and urged ministers to focus on setting clear priorities instead of repeatedly introducing new performance management processes.
As Labour continues its efforts to establish itself as a government capable of delivering real change, the success of these reforms will depend on how they are implemented and whether they achieve tangible improvements in public service efficiency.
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