Select Committee · Public Accounts Committee

Non-executive director appointments

Status: Closed Opened: 10 Jan 2024 Closed: 28 May 2024 11 recommendations 12 conclusions 1 report

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 …

Clear

Reports

1 report
Title HC No. Published Items Response
Thirtieth Report - Non-executive appointments HC 460 8 May 2024 23 Responded

Recommendations & Conclusions

14 items
2 Conclusion Thirtieth Report - Non-executive appoin… Accepted

Mandate government departments to use new applicant tracking system for all appointments.

The Cabinet Office does not yet have the data it needs to oversee the appointments process effectively. Until April 2023, the Cabinet Office’s only method of collecting data about public appointments was a manual exercise, requesting data from departments once a year, in which errors and inconsistencies were common. Its …

Government response. The government agrees the new applicant tracking system should be preferred and will write to all departments by the end of December 2024 to encourage wider use for unregulated appointments. They note that expanding full use will require an incremental …
HM Treasury
3 Conclusion Thirtieth Report - Non-executive appoin… Accepted

Publish comprehensive data on non-executive directors, panel diversity, and independence standards.

The Cabinet Office does not publish transparent information about NEDs, the diversity of panels who select them, or the requirements for independence in these roles. The Cabinet Office publishes an annual report on regulated public appointments, of which there were 4,476 in post as of March 2022. However, this report …

Government response. The government states it considers current processes for integrity and independence, governed by existing codes and principles, to be rigorous and therefore does not deem further guidance or process necessary. They also disagree with a separate recommendation regarding consulting the …
HM Treasury
4 Recommendation Thirtieth Report - Non-executive appoin… Accepted

Publish new public appointments diversity action plan and report on panel diversity data collection.

The appointments process is not set up to encourage diversity amongst NEDs. In June 2019, the government launched a Public Appointments Diversity Action Plan to focus on broadening access and improving the diversity and quality of appointees. The plan included an ambition for 50% of all public appointees to be …

Government response. The government agrees to the recommendation and commits to starting data collection on the diversity makeup of Advisory Assessment Panel members across departments in the 2025-26 financial year, for subsequent publication.
HM Treasury
5 Recommendation Thirtieth Report - Non-executive appoin… Accepted

Evaluate outreach activities, enhance NED training, and create a new governance code.

We are not convinced that current outreach activities are helping government to recruit the best candidates for NED roles. The Cabinet Office, the Government Lead Non-Executive, and the Commissioner for Public Appointments have all publicly declared their interest in improving outreach in order to encourage diverse and talented applicants to …

Government response. The government states it agrees with the recommendation and claims it is already implemented, believing the current system for job descriptions and scrutiny works appropriately. It commits only to reinforcing the message of quality assurance and clearance in existing public …
HM Treasury
1 Conclusion Thirtieth Report - Non-executive appoin… Accepted

Committee took evidence on non-executive director appointments across government.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Cabinet Office, the Government’s Lead Non-Executive, and the Chair of the Rural Payments Agency (RPA) about non-executive director appointments across government departments and public bodies.1

Government response. The government states it agrees and has implemented the recommendation, describing ongoing work by the Cabinet Office to improve efficiency, training, and data use in the public appointments system, including establishing a digital resources hub.
HM Treasury
6 Conclusion Thirtieth Report - Non-executive appoin… Accepted

Delays in public appointments deter candidates and risk creating governance gaps.

The NAO and the Commissioner for Public Appointments have noted that delays can put off candidates, leading them to withdraw their application or deterring them from applying in the first place.8 The Cabinet Office also told us that its outreach work showed that people can feel put off applying in …

Government response. The government agrees to review and consult on how to streamline recruitment and selection processes to reduce delays and improve diversity, with the outcomes to be published in a new approach by October 2025.
HM Treasury
7 Conclusion Thirtieth Report - Non-executive appoin… Accepted

Public appointments process remains too slow, despite recent reductions in average time.

The Cabinet Office agreed that it is not satisfactory that the appointments process takes so long. It noted that it is a ministerial priority to speed up the process. It reported that its latest data shows the number has fallen from an average 203 days in 2022–23 to 146 days, …

Government response. The government agrees with the principle of transparency but states that the current process, where ministers publish decisions and the Commissioner for Public Appointments records exceptional appointments, is already sufficient and no new, separate publication process is necessary.
HM Treasury
12 Recommendation Thirtieth Report - Non-executive appoin… Accepted

Cabinet Office does not recognise non-executive directors as a distinct appointment category.

We challenged the Cabinet Office on how it can provide effective oversight if it does not know how many NEDs there are serving on all government boards. The Cabinet Office responded that it does not recognise NEDs as a distinct category of public appointment. It told us that the vast …

Government response. The government agrees to include data in its annual public appointments data report about numbers and diversity of non-executive directors specifically and unregulated public appointments, with a target implementation date of April 2025.
HM Treasury
15 Recommendation Thirtieth Report - Non-executive appoin… Accepted

Explicit standards of independence for NEDs are lacking; political donations not tracked.

We questioned the witnesses about what standards of independence they would expect from NEDs, in particular how independent they should be from ministers with whom they will be working. The Cabinet Office told us that this is not set out explicitly and that it is a judgment call. It further …

Government response. The government believes the current processes are rigorous and therefore does not consider further guidance or process necessary.
HM Treasury
17 Recommendation Thirtieth Report - Non-executive appoin… Accepted

Cabinet Office failed to meet 2022 diversity targets and lacks future aspirations.

In June 2019, the Cabinet Office launched a Public Appointments Diversity Action Plan (the Plan”) to focus on broadening access and improving the diversity and quality of appointees.31 The Plan set out ambitions for 50% of all public appointees to be female and 14% of all public appointments to come …

Government response. The Cabinet Office will publish a new plan to improve diversity across the public appointments system by October 2025.
HM Treasury
18 Recommendation Thirtieth Report - Non-executive appoin… Accepted

Government lacks comprehensive diversity data for NEDs, particularly on social background and disability.

We questioned the witnesses about their current approach to diversity. The Government’s Lead Non-Executive noted that he thought the only target that would make sense in the long-run would be a 50% split of gender between men and women.34 The Cabinet Office told us that currently 48% of NEDs in …

Government response. The Cabinet Office will publish a new plan to improve diversity across the public appointments system by October 2025.
HM Treasury
19 Recommendation Thirtieth Report - Non-executive appoin… Accepted

No requirement or tracking exists for scrutinising job advertisements for unconscious bias.

We asked about what was done to address conscious or unconscious bias in the way jobs are advertised and described. The Cabinet Office said that the written description and criteria were vital and, indeed, served as the basis for judging who would be appointable.37 It told us that it would …

Government response. The government states that job descriptions and advertisements are already scrutinized and cleared by a senior civil servant and the responsible minister, and will reinforce the message of appropriate quality assurance and clearance in public appointment guidance documents.
HM Treasury
22 Conclusion Thirtieth Report - Non-executive appoin… Accepted

Cabinet Office prioritises and conducts varied outreach activities to diversify public appointment applicants.

The Cabinet Office told us that one of its priorities is outreach, to develop a talent pool of potential applicants. The Government’s Lead Non-Executive and the Commissioner for Public Appointments have also declared their intention to improve outreach. The Cabinet Office told us that it has reached out to private-sector …

Government response. The government stated it has revamped its talent and outreach offer, reaching over 2,500 people and doubling its social media reach, and will continue and enhance this activity, while tracking the progress of attendees through the applicant tracking system.
HM Treasury
23 Recommendation Thirtieth Report - Non-executive appoin… Accepted

Outreach measurement for public appointments remains incomplete, lacking social and professional background data.

We questioned the witnesses about their outreach initiatives and how success will be measured. When we asked how they measured success of “roadshow” events, the Cabinet Office told us that it tracks whether people sign up on the website and noted that 84% of attendees to the outreach events it …

Government response. The government stated it has revamped its talent and outreach offer, reaching over 2,500 people and doubling its social media reach, and will continue and enhance this activity, while tracking the progress of attendees through the applicant tracking system.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
18 Mar 2024 Elizabeth Passey · Rural Payments Agency, Michael Jary · Cabinet Office, Simon Madden · NHSX, Sir Alex Chisholm · Cabinet Office View ↗

Correspondence

3 letters
DateDirectionTitle
16 Apr 2024 Correspondence from Simon Madden, Director of Propriety & Ethics, Cabinet Offic…
15 Apr 2024 Correspondence from Simon Madden, Director of Propriety & Ethics, Cabinet Offic…
15 Apr 2024 Joint correspondence from Sir Alex Chisholm, Civil Service Chief Operating Offi…