An internal report at the BBC has concluded that £80 million-a-year is being wasted by the corporation through poor management of under-performing staff, as well as through the increase of salaries for staff who do not qualify for one.

The report, leaked to The Guardian by the BBC’s People department has identified the savings that could be made as part of the strategy to save £400 million in budgets following the recently freeze on the licence fee by the Government.

According to the report, the corporation is paying out over £50 million each year to ‘poorly performing staff’ and has recommended that a new management appraisal system is introduced, with 910 staff identified as being ‘poor performers.’

£28 million is also being paid to staff for ‘unpredictability allowances’ who did not work unpredictable hours.

The BBC is currently implementing cost cutting measures across the corporation in order to lower its wage demands following the licence free freeze, which includes the axing of over 1,000 jobs at BBC World Service, and a threat to cut its local radio services, and replace them with content taken from Five Live.

Rumours have also circulated that BBC 2 could also see it’s daytime output consist of news from the BBC News channel, with current political programmes on the channel, and children’s TV remaining as part of its schedule also.