PCS launches indicative ballot on new FCDO performance-based pay system

The union has rejected the Treasury’s 3.25% pay remit (plus 0.5% for low pay), arguing it fails to address inflation, low pay, or restore previous cuts.

The FCDO’s offer includes:

• A consolidated award (pensionable pay increase)
• A non-consolidated award (one-off, non-pensionable payment)

We have raised concerns that combining these figures misrepresents the true pay increase. We also oppose diverting funds from consolidated pay to performance bonuses, leaving 21% of staff with less than the expected 3.25% increase.

Crucially, future pay awards will now be tied to performance ratings from 2024–2025 – a change introduced without proper consultation. We argue that this retrospective application is unfair, as staff were unaware that their performance ratings would affect future pay.

Risks to equality and fairness

PCS has long campaigned against performance-related pay, citing evidence that it disproportionately affects women, disabled staff, and those with caring responsibilities. Staff who take parental leave, secondments, or unpaid leave may find themselves excluded from pay awards under the new system.

And to add insult to injury the FCDO has created a new performance management system which has no right of appeal. This is despite PCS stating at every consultation meeting that there must be a right of appeal before dismissal. So not only is pay now determined at the whim of a line manager, if you disagree with their decision that you are a poor performer and are on an improvement plan you cannot appeal that. PCS is challenging this.

PCS is calling on members to vote in an indicative ballot to express their views on the new system, an email has been sent to members containing a link to the ballot. This is not a vote for industrial action but will guide future campaigning. The ballot is due to close at noon on 29 August.