A news report that is unlikely to do much to raise Christmas cheer reveals that civil servants by been paid £130 million in bonuses this year, a cost of £2 for every person in the UK – and a 25% increase on last year. And the largest bonus was £50,000 given to a civil servant in the Department of Health.

This is obscene.

No civil servant should ever get a bonus anywhere that amount – and considering both the fact that the UK is in the longest recession ever and that the Chancellor has just set a 50% tax on bankers whose bonuses are larger than £25,000 it is even more inappropriate. Especially since civil service bonuses are not covered by this new tax.

Possibly the worst bit is the response from the civil service:

Sir Gus O’Donnell, the Cabinet Secretary and the country’s most senior civil servant, has said that the most senior officials will give up bonuses and accept below-inflation pay rises this coming year to show that the Government is tightening its belt in the recession. (The Telegraph)

Senior civil servants should do more than merely give up their bonuses and accept a “below inflation” pay rise for a year. They should give up bonuses for the rest of their careers and take at the very least a pay freeze – just like most of the private sector has this year – or, preferably, a substantial pay cut.

But what is needed in the long term is the eradication of the gold-plated remuneration enjoyted by the entire public sector. Their final salary schemes should be abolished for all, including existing members. The current situation whereby they get market rate pay and a final salary pension is untenable and must end.

Unfortunately, however, it appears that the civil service is planning to pay out even more in bonuses next year…