Department for Enterprise defends £220k taxpayer-funded bonuses expenditure

DfE says bonuses are essential to attract private-sector expertise

The Department for Enterprise has defended its use of £220,000 in bonus payments over the past five years, arguing that such payments are necessary to attract private-sector expertise and that they are budgeted as part of overall salary packages rather than additional, unexpected costs.

The response comes after it was revealed that £81,676 had been awarded to seven staff members in 2023/24, more than doubling the previous year’s total.

The Department insists that these payments, while unusual in government, reflect commercially competitive pay structures and are limited to business development roles within the executive agencies (Business Isle of Man, Finance Isle of Man, Visit Isle of Man, Digital Isle of Man).

Justification for bonuses

A spokesperson for the Department said: "Whilst such contracts may be unusual across the broader public service, they are more typical in the private sector in business development roles in particular, and reflect the diverse nature of the Department."

The DfE says that it was granted 'special permission' to use individual contracts outside the standard Public Services Commission structure to attract commercial expertise, particularly in roles requiring business development skills.

Unlike standard public service positions, these contracts:

• Do not include pension contributions or full public sector benefits.
• Are typically limited-term with no guarantee of renewal.
• May include performance-based pay, negotiated as part of a pre-determined salary package.

The Department said that all remuneration, including bonuses, is assessed against total potential cost and compared to standard public sector contracts.

Who decides on bonus payments?

The Chief Officer of the Department has the final say on recruitment and bonus approvals.

All payments must be based on pre-agreed objectives, reviewed either by a senior officer or a remuneration panel.

Why the increase in bonus recipients in 2023/24?

The number of recipients more than doubled from three to seven in 2023/24. The Department attributes this to:

• New roles requiring limited-term contracts.
• Existing contracts expiring and being renegotiated.
• All roles being within the Executive Agencies, where business development expertise is required.

The DfE insisted that all contracts are assessed against total potential cost and weighed against the alternative of a full public service role, which includes pension contributions.

Are politicians eligible for bonuses?

The Department confirmed that no political members, including ministers or departmental members, received any of these payments, stating that they are not directly remunerated by the Department.

Transparency

While the DfE has defended its approach to bonus payments, it continues to withhold detailed performance criteria, citing data protection concerns.

It argues that disclosing this information could make it possible to identify individuals, breaching GDPR regulations.