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Recent findings from the TaxPayers’ Alliance (TPA) highlight a significant financial disparity in public sector salaries. Over 300 executives from quangos earned more than the Prime Minister last year.
Quangos, or quasi-autonomous non-governmental organizations, are public entities funded by taxpayers but operate with relative independence from direct government oversight. This category includes various organizations, from regulatory bodies to elements of the prison system.
In a significant policy shift, Labour leader Sir Keir Starmer recently dissolved NHS England, marking the largest quango elimination to date. The government is currently reevaluating multiple quangos as part of a broader initiative to curb bureaucratic excess and enhance operational efficiency.
John O’Connell, TPA’s chief executive, emphasized the urgent need for increased transparency regarding the compensation of these “quangocrats,” who are perceived to receive substantial salaries with little public accountability.
The Prime Minister’s salary stands at £172,153, which is approximately five times the median UK annual wage of £37,430 as reported by the Office for National Statistics in April 2024.
According to the TPA, a total of 315 quango executives commanded salaries exceeding that of the Prime Minister. Notably, the highest earners include Channel 4’s chief executive at £619,000, followed closely by the HS2 chief executive at £618,195, and the head of Network Rail at £588,000.
The report revealed that at least 1,472 employees across various quangos received total remuneration surpassing £100,000, encompassing salary, expenses, and pension contributions.
The TPA broadly defines quangos to include a variety of public entities, such as non-ministerial departments and public corporations detailed in the government’s list of departments, agencies, and public bodies, which encompasses organizations like the Bank of England and the BBC.
O’Connell expressed support for the Labour government’s review of quangos, advocating for a sharper focus on dismantling redundant functions and restoring significant services to political oversight.
He commented, “Taxpayers will be taken aback to realize that numerous quango leaders earn considerable salaries while overseeing organizations largely unknown to the public. Furthermore, these executives often operate with minimal ministerial or parliamentary safeguarding, especially given the critical nature of their responsibilities.”
O’Connell added, “While the government has indicated a desire to manage the quango landscape more effectively, restoring political accountability paired with a thorough reassessment of their functional roles is essential.”
In counterpoint, Matthew Gill, program director at the Institute for Government, warned that increased focus on quango executives’ salaries may not provide the complete picture. “Public organizations must remain democratically accountable,” he noted, “but constant micromanagement from ministers is unrealistic. Attracting talented individuals to lead these organizations requires competitive compensation.”
Gill also stressed the importance of contrasting public sector salaries with private sector benchmarks to adequately assess whether compensation levels are justified.
Under Starmer’s leadership, the Labour government has initiated the establishment of over 20 new quangos, such as Great British Energy, aimed at promoting renewable energy investments, and Skills England, intended to assist individuals in securing employment.
Quangos currently manage nearly 60% of daily government expenditure, with £353.3 billion allocated for the fiscal year 2022/23, according to the latest data.
The last major restructuring of quangos occurred under the Conservative-Liberal Democrat coalition government, which eliminated nearly a third of them, including agencies like the Audit Commission and the UK Film Council.
When questioned last month about the potential for another round of quango eliminations, Downing Street indicated that the Prime Minister advocates for a more “active and agile state,” steering away from delegating authority to external bodies.
In a recent development, the government announced plans to merge the Valuation Office Agency into HM Revenue & Customs by April 2026, reflecting ongoing efforts to streamline operations and eliminate redundancies.
Source
www.bbc.com