The London Fire and Emergency Planning Authority has switched 450 operational managers from a fixed salary to pay based on performance.

Staff will only be able to progress through the salary scale if their performance can justify it. However, it means that high-performing staff will have the opportunity to earn more than they currently can under national pay arrangements.

The authority believes that this will avert further pay disputes within the organisation.

Brian Coleman, chairman of the London Fire and Emergency Planning Authority, said: "This is a major step forward by the authority in introducing pay flexibility and matching reward to individual performance and contribution.

"It has the potential to transform the way the authority rewards its staff in the future," he added, "and sets an example to fire authorities on what can be achieved when they are left to negotiate locally."