Non-executive director appointments
Closed
What the inquiry looked at
“Non-executive directors (NEDs) serve on the boards of Government departments and arm’s-length bodies (ALBs). Their role is to provide challenge and expert advice grounded in experience to management boards and Government ministers. The Committee’s 2021 report on Government’s delivery through arm’s-length bodies noted controversy around the appointment of NEDs to departmental boards as raising questions about whether the public appointments process is fit for purpose, and concluded that the process does not give confidence that it is efficient, transparent and fair. In 2023, the Public Administration and Constitutional Affairs Committee (PACAC) reported that, while many NEDs have added value to departments in several ways, their use is somewhat ad hoc across Government. The report further highlighted several examples of appointees with seemingly political or personal connections to the Government, and recommended a clear separation between the role of political or personal advisers and that of objective non-executive board members. Based on a National Audit Office (NAO) review into NED appointments, the Committee will take evidence from Government officials including from the Cabinet Office on subjects including: Challenges in the NED appointment process and actions taken to improve it; Oversight and support for Departments and ALBs in this area; The current picture on the NED population in Government. If you have evidence on these issues, please submit it here by 23:59 on Sunday 3 March 2024. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. Please note that the Committee is unable to investigate individual cases. This inquiry was closed due to the 2024 General Election.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
Non-executive directors (NEDs) provide government departments and arm’s-length bodies with strategic leadership, scrutinising performance, promoting transparency and taking a long-term perspective. However, major issues remain with the appointments process which are taking too long to resolve. In particular, appointments take far longer than they should which is deterring candidates and posing a risk to the governance of government boards: on average, in 2022–23 appointments took over half a year—203 days to be precise—from the competition close date. The Cabinet Office’s Governance Code states that appointments should be completed within three months but only 7% of appointments met this expectation in 2022–23, while nine took more than a year to complete, with the longest taking more than 400 days.
The Cabinet Office is responsible for oversight of public appointments, but only monitors and tracks ‘regulated’ appointments—those appointments to bodies or posts listed in the relevant Order in Council (see paragraph 14)—of which there were 4,476 in post as of March 2022. Some regulated appointments are for NEDs, but not all. Many other types of appointment are also classed as regulated appointments, such as trustees, commissioners, advisers, chief inspectors, and adjudicators. The Cabinet Office does not know how many of those 4,476 were NEDs. Moreover, the Cabinet Office does not currently track unregulated appointments so it cannot say how many unregulated NEDs there are across government, how diverse they are, or how long they take to appoint.
Before 2023, the Cabinet Office’s only method of collecting data about regulated appointments was a manual exercise, requesting data from departments once a year.
The Cabinet Office has recently introduced a new applicant tracking system and requires all departments to use it for regulated public appointments. This system should allow government to understand better where delays are occurring and help to improve its oversight of regulated appointments. However, the new application system is still in its early stages, and not all departments and arm’s-length bodies are using it as intended, so the Cabinet Office still does not have the data it needs. While the Cabinet Office expects some departments will also use the system for unregulated appointments—so allowing the Cabinet Office to start collecting some data on those appointments—the Cabinet Office does not currently require them to do so.
We still do not have confidence that the public appointments process is efficient, transparent and fair. The Cabinet Office does not publish clear information about NEDs or the panels which select them. It launched a diversity action plan in 2019, with the ambition for 50% of all public appointees to be female and 14% of yearly appointments to be from ethnic minority backgrounds by 2022. It did not meet these targets by 2022 and has no plans to put in place a new diversity action plan or updated targets. While government has sought to strengthen its outreach activities, it cannot yet demonstrate how effective these have been in recruiting the best candidates for NED roles.
What the government said
The government responded on 11 July 2025.
The government states that it agrees with most of the Committee's recommendations, disagrees with one on the rules for appointments made without competition, and sets target implementation dates ranging from December 2024 to October 2025.
- On transparency about delays, the government agrees and will implement a refreshed approach to data and transparency in relation to public appointments "from April 2025", saying the general election meant it could not report by the Committee's September 2024 deadline.
- On unregulated appointments, the government agrees and says the Cabinet Office "will write to all departments on this issue by the end of December 2024". It says that expanding use of the digital platform to all of them will be done "incrementally over a period of time".
- The government agrees to publish a new plan to improve diversity by October 2025, and says the outcomes of its bias review and consultation on recruitment and selection will be reflected in that new approach.
- The government disagrees with applying the rules on appointments made without competition to unregulated appointments, saying this "would require ministers to consult the Commissioner for Public Appointments on appointments over which he has no remit".
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 10 January 2024 to 11 July 2025.
- Oral evidence 18 Mar 2024
- Report 8 May 2024
- Government response 11 Jul 2025
- Correspondence 3 letters
What it recommended 11 recommendations · 12 conclusions
2Mandate government departments to use new applicant tracking system for all appointments.
3Publish comprehensive data on non-executive directors, panel diversity, and independence standards.
4Publish new public appointments diversity action plan and report on panel diversity data collection.
5Evaluate outreach activities, enhance NED training, and create a new governance code.
1Committee took evidence on non-executive director appointments across government.
6Delays in public appointments deter candidates and risk creating governance gaps.
7Public appointments process remains too slow, despite recent reductions in average time.
8Public appointments data collection prior to April 2023 was manual, infrequent, and error-prone.
9New centralised applicant-tracking system launched to improve public appointments data collection.
10Departments fail to consistently use new system, resulting in inaccurate and delayed data.
11Cabinet Office lacks comprehensive data on total non-executive directors serving across government boards.
12Cabinet Office does not recognise non-executive directors as a distinct appointment category.
13No central list or mandatory system use currently exists for unregulated public appointments.
14Cabinet Office yet to outline a plan for improving transparency of appointment data.
15Explicit standards of independence for NEDs are lacking; political donations not tracked.
16Ministers ultimately select independent and senior independent panel members for appointments.
17Cabinet Office failed to meet 2022 diversity targets and lacks future aspirations.
18Government lacks comprehensive diversity data for NEDs, particularly on social background and disability.
19No requirement or tracking exists for scrutinising job advertisements for unconscious bias.
20Ministerial responsibility for Advisory Assessment Panel composition affects diversity in public appointments.
21Cabinet Office does not monitor diversity of Advisory Assessment Panels, contributing to insular processes.
22Cabinet Office prioritises and conducts varied outreach activities to diversify public appointment applicants.
23Outreach measurement for public appointments remains incomplete, lacking social and professional background data.
Evidence
Oral evidence sessions 1
- 18 Mar 2024Non-executive director appointments4 witnesses, listed belowparliament.uk ↗
Who gave evidence 4 witnesses
- Elizabeth PasseyChair, Rural Payments Agency
- Michael JaryGovernment Lead Non-Executive, Cabinet Office
- Simon MaddenDirector of Policy & Strategy, NHSX
- Sir Alex ChisholmPermanent Secretary, Cabinet Office
Correspondence 3 letters
- 16 Apr 2024Correspondence from Simon Madden, Director of Propriety & Ethics, Cabinet Office, re Public Accounts Committee – Oral Evidence update Non-Executive Director appointment, dated 2 April 2024
- 15 Apr 2024Correspondence from Simon Madden, Director of Propriety & Ethics, Cabinet Office, re Public Accounts Committee oral evidence session on Non-Executive Director Appointments - 18 March: transcript change requests, dated 2 April 2024
- 15 Apr 2024Joint correspondence from Sir Alex Chisholm, Civil Service Chief Operating Officer and Permanent Secretary, Cabinet Office, Simon Madden, Director, Propriety and Ethics, Cabinet Office, and Michael Jary, Government Lead Non-Executive, Cabinet Office, re Public Accounts Committee oral evidence session on Non-Executive Director Appointments - 18 March: Cabinet Office follow up actions, dated 26 March 2024