Francis Maude wants to reward civil servants who reduce costs

CABINET office minister Francis Maude has told City A.M. he would like to see greater rewards for civil servants who cut the cost of central government contracts.

“There is a bonus scheme and we should definitely reflect to a greater extent than currently happens the success of civil servants in achieving meaningful savings,” he explained.

However, he said it would be “very controversial” to make a direct link between saving the Treasury money and Whitehall pay. 

Maude was speaking as the cabinet office announced it made £10bn of cost savings over the last financial year by reducing the number of civil servants, demanding better rates from suppliers, and moving from physical premises as part of a digital-first strategy.

But Maude said he was still only “10 per cent” of the way to making Whitehall operate to the same standards as a FTSE 100 company.

Yesterday the department invited City analysts who cover the outsourcing sector to scrutinise its accounts and hear about the new demands it will be placing on big suppliers such as Capita and Serco.