Hundreds of fat-cat public officials were paid more than the Prime Minister last year – sparking calls for Labour to speed up its promised ‘bonfire of the quangos’.
More than 350 quango bosses received a higher taxpayer-paid salary than the £172,153 Keir Starmer is entitled to.
And almost 1,500 staff in publicly owned bodies received more than £100,000 in pay and perks last year, according to research published.
As taxpayers were forced to tighten their belts amid economic turmoil, some executives in public organisations were handed five-figure bonuses.
Sir Keir has pledged to shrink the bloated state by culling expensive and unaccountable bodies in a bid to save millions of pounds.
But there are fresh demands for him to ‘light the fuel on the bonfire’ after Labour actually created more than 20 bodies since the election.
John O’Connell, chief executive of the TaxPayers’ Alliance, which compiled the figures, said: ‘Taxpayers will be shocked to hear that there are hundreds of quangocrats heading up bodies they may never have heard of, taking home massive pay packets the average Brit can only dream of.
‘But beyond the healthy remuneration, arguably the bigger problem is that in many areas of government policy, these quango bosses reign supreme, with minimal ministerial or parliamentary oversight, despite the often highly sensitive and significant nature of what their organisation is responsible for.
More than 350 quango bosses received a higher taxpayer-paid salary than the £172,153 Keir Starmer is entitled to
Whitehall departments have since been told to justify the existence of every arms-length organisation they fund
‘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 a serious review of some of the functions they perform.’
Sir Keir’s promise to slim down the state and cut costs started earlier this year when he announced the abolition of NHS England, known as the world’s biggest quango.
Whitehall departments have since been told to justify the existence of every arms-length organisation they fund.
But Labour has in the meantime created 27 new bodies – including quangos, taskforces and advisory councils – since coming to power last year.
This month, an equal-pay watchdog was created as part of a new law forcing firms and public bodies to record staff wages by race.
Almost 300 bodies were abolished during the Tory/Lib Dem coalition’s own ‘bonfire of the quangos’, but many more remain, costing taxpayers £353 billion in 2022-23.
Shadow Cabinet Office minister Mike Wood said: ‘There are too many quangos wasting taxpayers’ cash, but Labour’s only answer is to create 27 more – including Rachel Reeves’ pet project, the Office for Value for Money, which will cost millions of pounds without any benefit for hardworking people.’
Maxwell Marlow, of the Adam Smith Institute think-tank, urged: ‘The Government must move quickly and ruthlessly to streamline the regulatory state.
Labour has in the meantime created 27 new bodies – including quangos, taskforces and advisory councils – since coming to power last year
‘Quangos cost taxpayers hundreds of millions, much of which can be saved, and cost the economy billions in regulations – the quicker these bodies are pruned and abolished, the faster the economy will be unleashed.’
The report finds that 1,472 quango staff received remuneration – salaries, bonuses, compensation for loss of office and pension benefits – above £100,000 in 2023-24. At least 343 received more than £200,000.
In one quango – Homes England – 111 staff had pay packets above £100,000. There were 33 employees of the Parole Board who took home similar sums and 30 in HM Prison and Probation Service.
Among the best-paid ‘quangocrats’ was Nuclear Decommissioning Authority chief executive David Peattie, whose remuneration totalled £710,633. This included a bonus of £282,429. The authority did not respond to requests for comment.
Ninety BBC employees received pay packets above £100,000, with director general Tim Davie receiving £525,000.
But a spokesman insisted: ‘The BBC is a global broadcaster operating in a fiercely competitive commercial market, and it’s well known that senior BBC staff are paid significantly less than their industry counterparts.’
Although a public corporation, the BBC is funded through the licence fee rather than general taxation.
Britain’s best-paid quangocrat is Channel 4 chief executive Alex Mahon, whose remuneration totalled £993,000 last year.
Ninety BBC employees received pay packets above £100,000, with director general Tim Davie receiving £525,000
It comes as Elon Musk’s Department of Government Efficiency claims to have saved $160 billion (£120 billion) since Donald Trump took office at the start of the year
The broadcaster – which is publicly owned but not taxpayer-funded – said: ‘Channel 4 is funded from commercial activities – mainly advertising – and receives no government funding or taxpayer money for its core operations.’
A government spokesman said: ‘The Chancellor of the Duchy of Lancaster has launched a review of all arms-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.’
It comes as Elon Musk’s Department of Government Efficiency claims to have saved $160 billion (£120 billion) since Donald Trump took office at the start of the year.
And in Argentina, president Javier Milei – famed for wielding a chainsaw – has slashed government spending by 30 per cent, including laying off tens of thousands of officials.
Callum Price, of the Institute of Economic Affairs think-tank, told the Mail: ‘The Government must light the fuel on its bonfire of the quangos as soon as possible. With our national debt almost 100 per cent of GDP and the tax burden approaching new heights, it is imperative.
‘Scrapping quangos should not just be about copying and pasting jobs, and their costs, into government departments.
‘The Prime Minister should follow Javier Milei’s lead and take a chainsaw to the bloated state.’
