Radical civil service reforms are on the horizon in the UK, aiming to improve efficiency and effectiveness. A key component of these plans is incentivizing under-performing staff to leave their jobs through a new ‘mutually agreed exits’ process.
The UK government is set to introduce radical reforms aimed at improving the efficiency and effectiveness of the civil service.
According to Cabinet Office minister Pat McFadden, the changes will be ‘radical‘ but not an ‘ideological approach to stripping back the state.’
Pat McFadden is a British Labour Party politician who has been the Member of Parliament (MP) for the constituency of Wolverhampton South East since 2005.
Born on September 21, 1965, in Sheffield, England, he studied at the University of Warwick and later obtained a Master's degree from the same institution.
McFadden served as the Shadow Secretary of State for Scotland from 2011 to 2013 and has been involved in various parliamentary committees, including those focused on business, innovation, and skills.
The plans aim to incentivise under-performing staff to leave their jobs and link senior officials’ pay to performance outcomes.
Incentivising Under-Performing Staff
Under a new ‘mutually agreed exits‘ process, civil servants who are not meeting their requirements will be encouraged to leave their jobs. This system is designed to give employers the tools to deal with bad performance and ensure that staff are held accountable for their work.
The plans also include putting under-performing senior civil servants on development plans, with the possibility of being sacked if there is no improvement within six months.
Senior civil servants are high-ranking government officials responsible for implementing policy decisions.
They oversee various departments, manage budgets, and coordinate with other agencies.
Typically holding positions such as Permanent Secretaries or Under-Secretaries, they provide strategic guidance to junior staff members.
With a strong focus on public service, senior civil servants ensure the effective delivery of government programs and initiatives.
Performance-Based Pay

The most senior officials will have their pay linked to performance outcomes, a move aimed at ensuring that they are held accountable for delivering results. This approach will help to drive improvement and ensure that staff are focused on delivering high-quality services to the public.
Digital and Data Roles
The plans also include a significant increase in digital and data roles within the civil service. One in 10 civil servants will be employed in these areas within five years, delivered through apprenticeships and retraining staff. Currently, there are 25,000 digital and data civil servants, making up 5% of the civil service workforce.
Digital and data roles have become increasingly important in today's business landscape.
According to a report by Gartner, by 2025, 85% of organizations will use AI to augment human decision-making.
These roles involve collecting, analyzing, and interpreting large datasets to inform business decisions.
Professionals in these fields are in high demand, with data scientists and analysts being among the most sought-after skills.
As technology continues to evolve, digital and data roles will play a crucial role in driving business growth and innovation.
A Centre-Left Approach
McFadden emphasized that the government’s approach is guided by its centre-left values, which prioritize good public provision. The plans aim to get ‘bang for our buck‘ in terms of outcomes for the public, rather than simply reducing headcount.
Challenges Ahead
The reforms will not be without their challenges, with some critics arguing that they do not go far enough. Dave Penman, general secretary of the FDA union, accused the government of delivering a ‘soundbite, not a credible plan for change.’ He argued that meaningful reform must put substance before headlines and that ministers need to set realistic priorities.
A New Era for the Civil Service
The introduction of these radical reforms marks a significant shift in the way the civil service operates. With a focus on performance, accountability, and delivering high-quality services to the public, the UK government is seeking to create a more agile and effective bureaucracy.