Public Sector: Pay
Rachel Reeves (Leeds West, Labour)
To ask the Chancellor of the Exchequer
(1) how many public sector workers are being paid off-payroll in (a) the NHS, (b) non-maintained schools and (c) publicly-owned banks; and if he will publish the details of any such arrangements;
(2) with reference to his review of the tax arrangements of public sector appointees, how much has been spent on legal fees relating to the review; how much the review cost; how many staff in his Department were allocated to the review; how many deals he considers are too expensive to unwind; and if he will publish all exemptions to the rules and the reasons for them.
Danny Alexander (Chief Secretary, HM Treasury; Inverness, Nairn, Badenoch and Strathspey, Liberal Democrat)
The review collected information in relation to off payroll engagements that cost the Government more than £58,200 per annum—the senior civil service pay minimum—in central Government Departments and their arm's length bodies. The review did not collect information in relation to non-senior staff engaged off payroll in any public sector organisation. The publicly owned banks were outside the scope of the review, as I set out on
The review was financed from within existing Treasury and departmental budgets—and no estimate of the overall cost of the review has been made. The review was led by officials in the Treasury's Public Spending Group, supported by officials from across the Treasury, Cabinet Office, HMRC and other Government Departments. No external legal advice was sought by the Treasury as part of the review.
The review's recommendations will be applied to existing contracts, subject to ensuring value for money for the taxpayer. As Departments are currently taking forward these recommendations, it is not yet possible to estimate the number of contracts that will be unwound as a result of the review. However, Departments will report to Parliament on the outcome as part of the 2012-13 annual report and accounts process.