Over 300 top officials at UK quangos earned higher salaries than the prime minister last year, new findings reveal. The data, published by the TaxPayers’ Alliance (TPA), has sparked renewed debate on public sector pay and accountability.
A quango short for quasi-autonomous non-governmental organisation is funded by taxpayers but operates independently from direct government control. These include public watchdogs, agencies, and services like the prison system.
The key phrase “quango pay needs reform” has become central in the ongoing debate over public sector governance.
Sir Keir Starmer, who earns £172,153 annually as prime minister, recently scrapped NHS England the UK’s largest quango. His government is now reviewing hundreds more in a bid to reduce bureaucracy and boost accountability.
The TPA found that 315 quango bosses out-earned the prime minister in 2024. At the top of the list, Channel 4’s CEO earned £619,000, while HS2’s chief executive received £618,195. The head of Network Rail took home £588,000.
Additionally, 1,472 quango staff earned over £100,000 in total compensation last year. This figure includes salary, pension, and other benefits. According to the TPA, “quango pay needs reform” to ensure greater transparency and accountability.
John O’Connell, head of the TPA, said taxpayers would be “shocked” by the scale of high salaries in lesser-known bodies. He argued that many of these organisations function with limited democratic oversight despite controlling crucial public services.
The Labour government has already launched over 20 new quangos, such as Great British Energy and Skills England. Critics claim this expansion contradicts its promise to cut waste. However, officials insist these bodies will help deliver on green energy and employment goals.
Meanwhile, the government plans to merge the Valuation Office Agency into HMRC by April 2026. The Treasury believes this move will reduce duplication and improve efficiency.
The phrase “quango pay needs reform” was echoed again in Westminster last week as pressure mounts on ministers. Reform advocates are calling for the scrapping of unnecessary roles and the return of vital services to direct political control.
Yet, some experts warn against blanket pay cuts. Matthew Gill from the Institute for Government noted that low pay may harm recruitment. He stressed that strong leadership in public bodies requires competitive salaries compared to the private sector.
Almost 60% of routine government spending now flows through quangos. In 2022/23, these bodies received a combined £353.3 billion in funding.
Despite previous cuts under the coalition government, many now ask if a new “bonfire of the quangos” is coming. Ministers say they aim to create a more agile state while restoring accountability.
Clearly, with salaries rising and scrutiny deepening, quango pay needs reform a message resonating louder with each new report.
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