MINISTRY of Defence officials are in line for 20% bonus payments at the same time as the Government enforces its 1% pay cap for other public sector workers.

Senior MoD staff who already earn over £100,000 could end up pocketing sizeable top-ups as a reward for their performance.

The UK Government last week narrowly avoided defeat after Labour MPs attempted to lift the 1% pay cap on public sector workers such as nurses, teachers, police officers and fire-fighters.

Long-running wage restraint has been a key plank of the UK Government's drive to cut the deficit, and a narrow majority of MPs upheld the unpopular policy.

However, the Defence Equipment and Support (DE&S), a trading entity and organisation within the UK Ministry of Defence, has been criticised over plans that could allow some of its highest earners to get generous income boosts.

DE&S, which employs around 12,000 civil servants and military personnel, is the “bespoke trading entity” that purchases all the equipment and services required by the armed forces.

According to the MOD website, the top priority of DE&S is supporting the armed services and “delivering better value for money to the taxpayer”.

Its new staffing structure is believed to have five pay bands, with administrators having the potential to earn between £15,000 and £35,000, while senior professionals can earn up to £120,000.

The “performance awards” scheme, which is at the proposal stage, makes clear that staff in the two lowest bands can get bonuses of between 3% and 6%.

However, staff in the ‘professional 1’ category can get a maximum 14% top-up, while senior professionals stand to receive a 10% hike for a “good” performance”, 15% for “very good” and 20% for exceptional.

MOD literature states that “your performance will drive your reward”, and lump sum bonuses, if the proposal is agreed, will be paid in August next year.

A spokesperson for the PCS trade union, which represents MOD staff, hit out at the plans: “DE&S believes that the proposed figures replicate how the outside pay market would operate. However, the trade unions do not accept that position and when negotiations recommence on pay shortly we will be firmly rejecting that proposal.

“Our union will be seeking to get the funding currently allocated to bonuses to be reallocated to basic pay and, if that is not achievable for any bonus payments to be fairly allocated to all staff.”

Labour MP Lesley Laird, who is the Shadow Secretary of State for Scotland, said: “It cannot be the right priority to be giving out bonuses to staff while our nurses and firefighters haven’t seen a real-terms pay rise for seven years.

“Labour’s amendment would have lifted the pay cap for all public sector workers, as part of our plan for a government that would work for the many, not the few. ”

SNP MP Carol Monaghan said: ''Service personnel welfare has to be a major priority for any government and the Tories have a shocking record - from poor MoD housing to slashing overall number and base closures. This unfair discrepancy would be the perfect opportunity for them to look at an overhaul and get some fairness into these payments.''

An MOD spokesperson said: "Performance awards help us recruit and retain the best possible staff needed to deliver our world class equipment plan to our Armed Forces.”