Prime Minister Sir Keir Starmer is facing growing pressure to accelerate cuts to Britain’s quango sector after it emerged that more than 1,300 staff are earning salaries and benefits packages worth over £100,000 - some even more than the PM himself.
Starmer has already criticised the size of the public sector, describing it as too “flabby” and calling for a leaner, more “agile” state by reducing the costs associated with public bodies operating beyond direct political control.
However, new figures reveal that 223 employees within quangos are receiving higher salaries than the Prime Minister himself, who earns £172,153.
Homes England topped the list, with 111 staff members receiving total remuneration packages of at least £100,000. These packages include not just basic salary but also expenses, bonuses, compensation for loss of office, and pension contributions.
Starmer has criticised the size of the public sector, describing it as too 'flabby'
REUTERSFollowing Homes England, the National Employment Savings Trust and the Financial Conduct Authority had the next highest numbers, with 56 and 45 staff respectively earning over £100,000.
According to analysis by the TaxPayers' Alliance (TPA), 1,379 officials working in quangos earned more than £100,000 during the 2023-24 financial year, with 287 individuals receiving benefits exceeding £200,000.
The figures do not include public service broadcasters, though when these are factored in, the TPA’s wider analysis found that a total of 1,472 employees in publicly funded, non-ministerial bodies had remuneration packages worth over £100,000.
The findings highlight the scale of the task facing Starmer as he attempts to rein in spending on quasi-autonomous non-governmental organisations.
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There are currently 32 quangos where at least ten employees receive total remuneration packages exceeding £100,000.
The highest-paid quango executive was Mark Thurston, chief executive of HS2, who earned £618,195. He was followed by Andrew Haines, chief executive of Network Rail, with a salary of £588,000.
The largest loss-of-office payment went to Michael Grenfell, the executive director for enforcement at the Competition and Markets Authority, who received £157,500.
Close behind was the director of countryside policy and management at the South Downs National Park Authority, awarded a £136,773 severance payment.
Additionally, two senior officials at the Teaching Regulation Agency each secured loss-of-office payments exceeding £90,000.
In total, 28 quango leaders received pension contributions worth £100,000 or more, while at least 25 officials were awarded bonuses larger than the UK's average salary.
Among these, five individuals received bonuses of more than £100,000 during the 2023-2024 financial year.
Quangos cover a wide range of areas, from the Food Standards Agency to Sport England.
The highest-paid quango executive was Mark Thurston, chief executive of HS2, who earned £618,195
GETTY
Some, such as Companies House- which manages corporate information- provide significant value to the government, according to the TaxPayers’ Alliance (TPA).
However, the TPA warned that the number and influence of quangos have steadily increased, raising concerns that ministerial responsibilities are being handed over to unelected officials while public costs continue to soar.
The TPA’s chief executive, John O’Connell, said although the numbers were shocking, the “bigger problem is that in many areas of Government policy these quango bosses reign supreme, with minimal ministerial or parliamentary oversight”.
He added: “The Government may have signalled an intent to get a grip of the quango state, but as well as restoring political accountability there needs to be serious review of some of the functions they perform.”
However, a Government spokesman said: “The Chancellor of the Duchy of Lancaster has launched a review of all arm’s-length bodies across government and we will close or merge any that cannot be justified.
“We have already announced we’ll get rid of the largest arm’s-length body, NHS England, by merging it with the Department of Health and Social Care. This will increase efficiency and help to deliver the Plan for Change.”
The Cabinet Office is also planning to reduce civil service administration costs by 15 per cent by 2030, redirecting spending to frontline services.
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