Curbs placed on mandarins' bonusesv

The Prime Minister said the bonus pay pot for senior civil servants and senior NHS managers would be reduced by two-thirds this year, saving 15m.

Only the top 25 per cent of staff – those making an "exceptional contribution" – will be handed a bonus.

David Cameron said the Government needed to "get on with the difficult job of tackling our country's record budget deficit".

"I believe that to do this we need to lead from the front. That's why last week the Cabinet and I agreed to take a 5 per cent pay cut," he said.

"Now we need senior civil servants to join us in showing leadership as we reduce the deficit, while protecting the vital public services on which we all rely.

"We all need to take responsibility if we are to overcome the problems this country faces."

Cabinet Secretary Sir Gus O'Donnell is now set to review the overall performance and appraisal process for senior civil servants.

Cabinet Office Minister Francis Maude said it was right that the most highly paid civil servants "play their part" in reducing the public sector pay bill.

"An effective system will reward the best performers and provide the right incentives for all to get the best for the taxpayer," he said.

"We want to see a more consistent and streamlined system."