As stated.
Driven by HM Treasury under a certain G Brown as a cost saving measure. Majority of civil servants hate it, because as stated, its non-consolodated, and replaced the old pay rises based on how well you/your department did. So as others have stated, it reduced the overall civil service pay bill, for it's non-consolodated and non-pensionable, but it has made good tabloid fodder and yet again set the civil service up as a popular political target. So pay will be cut again, civil servants will be more hacked off, so the service they provide to where it matters will be hit.