Recommendations & Conclusions
14 items
2
Conclusion
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 new applicant tracking system, introduced in April 2023, should allow it to build up a picture of how each department is performing on appointments, including timeliness and causes of delay. It currently requires departments to use the new system for all regulated appointments. However, the Cabinet Office does not yet have the data it needs because not all government departments and ALBs are adding accurate data to the system or using the system as intended. For instance, some departments are still running the recruitment process outside of the new system or making errors when inputting data. The Cabinet Office does not currently track unregulated appointments so cannot say how many unregulated NEDs there are across government, how diverse they are, or how long they take to appoint. While it expects departments to use the new system in the future to track unregulated appointments, it does not currently require them to do so. Recommendation 2: In response to this report, the Cabinet Office should: a) confirm in the Treasury Minute that all regulated appointments are now being run through the new applicant tracking system and what steps it is taking where departments do not comply; 6 Non-executive appointments b) write to departments mandating that they use the new applicant tracking system for all unregulated appointments.
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Government response AI summary
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 approach to build capacity.
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HM Treasury
3
Conclusion
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 does not break the data down by role so we do not know how many of those appointments are NEDs as opposed to other types of public appointment. Furthermore, the Cabinet Office does not collect or publish any data on either unregulated public appointments (an unknown number of which are NEDs) or about those who serve on Advisory Assessment Panels (which interview applicants and produce a list of appointable candidates, such as their diversity characteristics). Advisory Assessment Panels are required to include independent panel members, with some “significant appointments” requiring a “senior independent panel member”. The Cabinet Office has not set out what determines a suitable level of political independence for NEDs, independent members, or senior independent panel members. It says that around 3% of all regulated appointments have declared a political interest, but it relies on self-declaration by candidates of, for example, conflicts of interest or donations to political parties. Recommendation 3: The Cabinet Office should: a) Include data in its annual public appointments data report about numbers and diversity of: Ȥ non-executive directors specifically; and Ȥ unregulated public appointments. b) Centrally collect data about those who serve on Advisory Assessment Panels, including diversity data, and publish the aggregate data at least annually. c) Set out clearly the standards of independence expected of non-executive directors, independent panel members, and senior independent panel members, including what matters must be registered.
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Government response AI summary
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 Commissioner on unregulated appointments.
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HM Treasury
4
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 female and 14% of yearly appointments to be from ethnic minority backgrounds by 2022. The Cabinet Office did not meet those targets, reporting that in 2021–22 47% of all serving public appointees were female and 12% of all appointments and re-appointments went to people who were from an ethnic minority background. We recognise that the National Audit Office’s analysis found that the diversity of new appointees has improved: it found that in 2022–23, 53.7% of new appointees were female and 14.6% were from an ethnic minority background. But the Cabinet Office has not put in place a new diversity targets and has no plans to do so. Nor could it point us to convincing examples of how it deals with conscious and unconscious bias within the appointments process. Without checks on any bias, the current Non-executive appointments 7 process—in which ministers appoint the Advisory Assessment Panels who identify appointable candidates on which ministers then make a final decision—risks seeming insular and circular. While Ministers can only directly appoint a non- executive director in “exceptional cases” when making regulated appointments, there is no such restriction for unregulated appointments and it is not apparent if this has occurred or how frequently. Recommendation 4: In its Treasury Minute response to this report, the Cabinet Office should: a) state a date by when it will put in place a new diversity action plan for public appointments; b) set out the steps it has taken so far to review the feasibility and usefulness of compiling data on the diversity makeup of members of Advisory Assessment Panels, and the date by which it would report its conclusions to Parliam
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Government response AI summary
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.
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HM Treasury
5
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 apply for public appointments from a wide range of sectors, including the private and voluntary sectors, as well as veterans and disabled groups. The Cabinet Office has sought to strengthen its outreach activities to encourage people to apply for public appointments, for example, by holding in-person events around the UK and by running a Boardroom Apprentice Programme, whereby people with no experience on boards can serve as an observer on a board for a year to gain experience. The Cabinet Office could do more to demonstrate the effectiveness of these activities and to learn lessons to better focus its outreach work: for instance it does not have data of sufficient quality on the social and professional backgrounds of candidates. It is important that, as part of being fully effective, candidates to be a non-executive director should expect to regularly engage with ministers at all levels within a department. Recommendation 8: a) In its Treasury Minute response to this report, the Cabinet Office should set out how it is measuring the effectiveness of its outreach activities and what plans it has to develop them further to reach a wider pool of candidates. b) The selection and recruitment process for non-executive directors should cover the need for them to regularly engage with ministers at all levels within a department, and there should also be in-post training to support this objective. In addition, the Cabinet Office should draw up a new code of best governance practice, which should include a requirement that all ministers and non-executive directors attend departmental board meetings as a matter of routine – this new code s
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Government response AI summary
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 appointment guidance documents.
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HM Treasury
1
Conclusion
Thirtieth Report - Non-executive appoin…
Accepted
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
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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
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Government response AI summary
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.
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HM Treasury
6
Conclusion
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 the first place because they fear it will take too long. It said that executive search firms reported that people will take private sector posts instead of public appointments because they envisage the process for the latter will take longer to be completed.9 Delayed appointments can also lead to either gaps on boards or necessitate that public bodies resort to temporary appointments or extensions to fill those gaps. The Cabinet Office acknowledged that this situation is not desirable.10 The Government’s Lead Non-Executive told us that boards that are below strength are at risk of not being able to fully carry out their function with regards to governance. He also noted that if the chair of the audit and risk committee is vacant then there is a gap in the governance of the Department, so filling these roles promptly is important.11
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Government response AI summary
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.
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HM Treasury
7
Conclusion
Thirtieth Report - Non-executive appoin…
Accepted
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, …
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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, but acknowledged that additional work is needed to bring the number down to closer to the target of 90 days.12 The Cabinet Office attributed some of the delays to ministerial turnover as well as security vetting and reference checks. It is optimistic that the new applicant tracking system will allow it to identify where delays are occurring and intervene as needed.13 Poor data
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Government response AI summary
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.
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HM Treasury
12
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 majority of public appointments are non-executives but not all of them would be described as non-executive directors. They could, for example, be trustees, commissioners, advisers, board members, chief inspectors, adjudicators.19
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Government response AI summary
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.
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HM Treasury
15
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 clarified that “independence”, in this context, does not mean that they should be immune from politics, but it should be declared. The Cabinet Office told us that it relies on self-declaration. The Cabinet Office noted that about 3% of regulated public appointments have a declared political allegiance.25 We further questioned the witnesses about whether NEDs could be political donors. The Cabinet Office told us that appointees would be expected to declare donations above £5,000 (from 1 January 2024 the limit was set at £11,180).26 When we asked how many had done so, it told us that it did not track that information specifically. The Cabinet Office noted that public appointees are bound to follow the Code of Conduct for Board Members of Public Bodies and there is an expectation that they will abide by the Nolan principles.27
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Government response AI summary
The government believes the current processes are rigorous and therefore does not consider further guidance or process necessary.
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HM Treasury
17
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 from ethnic minority backgrounds by 2022.32 The Cabinet Office did not meet these targets. Its Public Appointments Data Report for 2021–22 reported that 47% of all serving public appointees were female and 12% of all appointments and re-appointments were people from an ethnic minority background. However, the NAO’s analysis found that the diversity of new appointees had improved in recent years. In 2022–23 53.7% of new appointees were female and 14.6% were from an ethnic minority background. The Cabinet Office has not set aspirations beyond 2022 and does not have any plans to do so.33
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Government response AI summary
The Cabinet Office will publish a new plan to improve diversity across the public appointments system by October 2025.
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HM Treasury
18
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 post are women. The Cabinet Office also told us that the most recent numbers showed 14.5% of appointments made in the year were to people identifying as from an ethnic minority, slightly below the corresponding 15% of the economically active population.35 The witnesses told us that they were also focused on increased diversity of thought, regional diversity, and social background. When we queried what data they used to measure diversity of background and what data they held on disability, the Government’s Lead Non-Executive noted that government did not hold this data for all NEDs because the system to collect the data was not in place for the entire population of current NEDs.36
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Government response AI summary
The Cabinet Office will publish a new plan to improve diversity across the public appointments system by October 2025.
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HM Treasury
19
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 expect job advertisements to be scrutinised for such bias before being provided to ministers for approval but it was not a requirement or something it tracked. It also said that it should include such considerations in its guidance and training.38 The Cabinet Office undertook to review alternative options for applicants to supply information on their relevant skills and experience when applying for roles that did not rely on traditional CV and personal statement formats, in particular the use of anonymised application forms.39
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Government response AI summary
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.
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HM Treasury
22
Conclusion
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 professionals, volunteers, veterans, disabled peoples’ forums, and faith communities.46 The Cabinet Office has also held “roadshow” events for prospective applicants, including in Darlington, Exeter, and Edinburgh.47 A Boardroom Apprentice Scheme has been rolled out, led by the Department for Levelling Up, Housing and Communities, which offers opportunities for people with no previous board experience to learn how a board works, both receiving classroom training and practical experience.48
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Government response AI summary
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.
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HM Treasury
23
Recommendation
Thirtieth Report - Non-executive appoin…
Accepted
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 …
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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 has held so far strongly agree that they would recommend interest or involvement in the public appointments process to friends or colleagues. It told us that it was continuing to measure data against gender and ethnicity, but that its measures are less good for social background and it has not analysed by professional background either. The Government’s Lead Non-Executive noted that hosting outreach 40 C&AG’s Report, para 3 41 Q 73 42 Q 81 43 Q 88 44 Correspondence from Cabinet Office to Public Accounts Committee, 26 March 2024 45 Q 75 46 Q 77; C&AG’s Report, paras 13, 3.12, 3.13 47 C&AG’s Report, para 3.12 48 Q 84; C&AG’s Report, Figure 12 Non-executive appointments 15 evens is a big cost to Government so it needs to be sure that what it is doing is working. He told us that it is important that Cabinet Office measures the impact and holds itself to account for whether these activities are successful.49 When we asked how the new website might help broaden outreach, the Cabinet Office told us that it was recycling candidates from past searches who were found appointable but were not appointed. When we asked what was being done to reach new talent, the Cabinet Office assured us it was seeing fresh talent coming through but also want to make use of ‘near misses’ from past campaigns. When we asked if it was advertising opportunities in places where they would be seen by diverse audiences, the Cabinet Office told us that it was primarily using the official government website. It told us that 12,000 people had registered for the government website and approximately 5,000 had uploaded their CVs.50 49 Q 80 50 Qq 77–79 16 Non-executive appointments
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Government response AI summary
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.
Read full response →
HM Treasury