Total reward for senior civil servants has been reduced by around 17% in real terms over four years, according to a report by the National Audit Office (NAO).
The report concluded that, owing to pay freezes and changes to pensions and benefits, promotion in the senior civil service is becoming so financially unattractive as to put off talented people.
The NAO has warned that the latest moves to increase pay flexibility and offer incentives for business-critical roles may not be enough to recruit, motivate and retain the right people.
It also welcomed the Civil Service Reform Plan earlier this year, and emphasized the urgent need to make progress, given that the plan underpinned the government’s chances of achieving further savings.
Amyas Morse, head of the National Audit Office, said: “The real challenge is to shift the long-standing culture in the civil service to create a leadership group with the full range of skills needed for success, today and in the future, and which is a shared resource across government.
“This is far easier said than done. The case for a corporate approach is now inescapable, but achieving full buy-in from departments will take time. Progress will need to be rapid and involve all senior civil servants, not just those on corporate talent programmes.”