The Group operates a share-based incentive scheme open to all employees of the Group although the current intention is that only the Company's executive directors (being both board directors and certain members of the executive committee) and selected senior employees will participate in the scheme. These awards will, under normal circumstances, vest subject to continued service and the achievement of performance conditions over a three-year period. Further details are given in the directors' remuneration report.

Performance share plan

The vesting of awards is subject to performance conditions set by the remuneration committee. The Group recognised a total charge of £834,000 for the year (2019: £472,000) with a corresponding entry to reserves. The weighted average fair value of share options granted during the year was £0.76 per share. Three outstanding awards had been granted to 31 March 2020:

During the year ended 31 March 2018 the remuneration committee granted 2,261,000 ordinary shares of 2.5p each at £nil value. The vesting of these awards will be dependent on the Group's underlying earnings per share performance over the three-year period from 1 April 2017 to 31 March 2020. The following vesting schedule applies:

Underlying EPS performance for year ended 31 March 2020% of award vesting
Equal to less than 6.76p0%
Equal to 7.98p or better100%
Between 6.76p and 7.98pbetween 25% and 100%

The assumptions used to measure the fair value of the shares granted are as follows:

Share price on date of grant£0.83*
Exercise pricenil
Expected volatility (using historic performance)26%
Risk-free rate0.5%
Dividend2.7p
Actual lifethree years

* Granted on 14 June 2017.

The Black–Scholes pricing model produced, using the above assumptions, an annual charge of £516,000 (2019: £50,000).

During the year ended 31 March 2019 the remuneration committee granted 2,224,808 ordinary shares of 2.5p each at £nil value. The vesting of these awards will be dependent on the Group's underlying earnings per share performance over the three-year period from 1 April 2018 to 31 March 2021. The following vesting schedule applies:

Underlying EPS performance for year ending 31 March 2021% of award vesting
Equal to less than 7.88p0%
Equal to 9.75p or better100%
Between 7.88p and 9.75pbetween 25% and 100%

The assumptions used to measure the fair value of the shares granted are as follows:

Share price on date of grant£0.84*
Exercise pricenil
Expected volatility (using historic performance)37%
Risk-free rate0.8%
Dividend3.0p
Actual lifethree years

* Granted on 20 June 2018.

The Black–Scholes pricing model produced, using the above assumptions, an annual charge of £nil (2019: £nil).

During the period ended 31 March 2020 the remuneration committee granted 2,861,509 ordinary shares of 2.5p each at £nil value. The vesting of these awards was dependent on the Group's underlying earnings per share performance over the three-year period from 1 April 2019 to 31 March 2022. The following vesting schedule applies:

Underlying EPS performance for year ending 31 March 2022% of award vesting
Equal to less than 8.41p0%
Equal to 10.39p or better100%
Between 8.41p and 10.39pbetween 25% and 100%
The assumptions used to measure the fair value of the shares granted are as follows:
Share price on date of grant£0.71*
Exercise pricenil
Expected volatility (using historic performance)54%
Risk-free rate0.5%
Dividend3.0p
Actual lifethree years

* Granted on 20 June 2019.

The Black–Scholes pricing model produced, using the above assumptions, an annual charge of £nil (2019: £nil).

Reconciliation of share awards outstanding under the performance share plan are as follows:

2020
Number
2019
Number
Outstanding at the beginning of the year7,084,2407,297,044
Granted during the year2,861,5092,224,808
Lapsed during the year(41,605)(244,921)
Vested during the year(3,611,776)(2,192,691)
Outstanding at the end of the year6,292,3687,084,240
Save As You Earn share option plan ('Sharesave')

The plan, which was established in 2015 and expires in 2025, is open to all employees on the UK payroll. Participants may elect to save up to £500 per month over the life of the plan under three-yearly savings schemes, each with a separate savings contract.

Under the 2017 Sharesave scheme, options were granted by the Company to participating employees to buy shares at a discount of 20 per cent from the then market price. At the end of the 2017 Sharesave scheme in 2020, these options become exercisable for a period of six months. A charge of £135,000 (2019: £135,000) was recognised in the current period in relation to the 2017 Sharesave scheme.

Under the 2018 Sharesave scheme, options were granted by the Company to participating employees to buy shares at a discount of 20 per cent from the then market price. At the end of the 2018 Sharesave scheme in 2021, these options will become exercisable for a period of six months. A charge of £183,000 (2019: £183,000) was recognised in the current period in relation to the 2018 Sharesave scheme.

Reconciliation of share awards outstanding under the Sharesave plan are as follows:

Save As You Earn option plan ('Sharesave')
2020
Number
2019
Number
Outstanding at the beginning of the year4,224,2005,771,734
Granted during the year2,622,874
Lapsed during the year(259,491)(1,090,436)
Vested during the year(413,309)(3,079,972)
Outstanding at the end of the year3,551,4004,224,200