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GORDON BROWN is facing a “fat cat” row as official figures show that the highest earners in the public sector have seen their pay rise by six times the rate of inflation and more than three times the national average.
The top 300 bosses in the state sector saw their salaries increase 12.8% last year, boosting their pay to an average £237,564, according to a public sector “rich list”. Seventeen earned more than £500,000 per year.
The report prepared by the TaxPayers’ Alliance, a pressure group trying to cut tax, undermines Brown’s pledge to keep pay rises for rank and file public sector workers within the government’s 2% inflation target.
“It’s all very well increasing top pay in the public sector but it is difficult to see what we are getting for the money,” said Chris Grayling, the Conservative shadow work and pensions secretary. “In many parts of the public sector things aren’t getting any better and people are asking: where’s the money going?”
The study, which also identifies high-earners who underperformed or failed in their duties, understates the full extent of the pay bonanza because it only lists those whose earnings are declared in published accounts.
Several thousand unnamed GPs meet the £150,000 of annual earnings to qualify for the list, as do many executives and broadcasters at the BBC. The TaxPayers’ Alliance issues a separate rich list to cover largesse in local government.
The 10 highest paid on its list earn an average of £799,000, 40 times as much as the basic pay for a nurse or soldier.
Some of those on the list were awarded bonuses despite failing to fulfil important duties or leaving for better-paid posts.
“There is a complete mismatch between rewards and performance,” said Corin Taylor, research director at the TaxPayers’ Alliance. “Taxpayers don’t begrudge proper salaries being paid to people who perform but this list shows that plenty of people have been paid extremely well for poor performance.”
Brown has repeatedly insisted that public sector pay must be kept under tight control. In a speech to the Trades Union Congress in September, he said: “Pay discipline is essential to prevent inflation, to maintain growth and to create more jobs.”
Despite the high salaries some public sector executives receive perks such as free cinema tickets, gym use and rail travel.
Brown’s pay of £188,849, which combines his pay as premier with his parliamentary salary, is only enough to secure him 143rd place. Tony Blair was 88th last year, indicating rapid pay inflation.
Whitehall mandarins prosper. There are 10 civil servants, each from the Cabinet Office and the Ministry of Defence, on the list.
At the top of the league sits Adam Crozier, group chief executive of Royal Mail, who saw his total package increase by 21% last year to £1.25m, even as he cancelled the second mail delivery and increased the price of stamps. The figures show that he can earn £1,000 in an hour and 27 minutes seated at his desk.
Eleven of the top 100 public sector executives are from Ofcom, the broadcasting regulator, which was caught on the hop by recent scandals over televi-sion phone-in competitions.
The figures were derived from the annual reports of 126 public sector bodies. The TaxPayers’ Alliance said the information should be more freely available.
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