The bonus system in the civil service needs a fundamental overhaul, so that departments which do not meet targets do not get rewards, the Prime Minister told MPs today David Cameron said that he wanted only "genuine excellence" to be rewarded with a bonus.
Addressing the House of Commons liaison committee on the Government's civil service reform programme today, he said: "We have changed the bonus culture in the civil service but I agree that if divisions and departments don't perform, there should not be bonuses.
"I think we need to change the whole system more fundamentally." Mr Cameron said that he was weighing up options in introducing an 'earnback' scheme, but he was not "mad" about the idea.
The Government and Labour clash over the scale of inquiry into the banking scandal. Labour want a full, independent one.
The new government inquiry will look both into the culture of banking and into the setting of Libor rates
The Chancellor's team says his announcement to the Commons will "shoot Labour's fox."