Home Business NewsHundreds of council staff out-earn Starmer as local authority pay hits record high

Hundreds of council staff out-earn Starmer as local authority pay hits record high

by Thea Coates Finance Reporter
14th Apr 26 12:37 pm

More than 300 council employees across the UK are now earning more than the Prime Minister, according to a new report highlighting a continued rise in senior local authority pay.

The analysis by the TaxPayers’ Alliance (TPA) says around 320 council workers received pay packages above Sir Keir Starmer’s £172,153 salary during the 2024–25 financial year.

The right-leaning campaign group, which publishes an annual “Town Hall Rich List”, said the number of local government staff earning above the PM had increased by roughly a third compared with the previous year.

Overall, the report estimates that 4,733 council employees across Great Britain and Northern Ireland are now paid more than £100,000 a year—the highest level recorded since the TPA began tracking the figures in 2007.

Within that group, 1,255 staff are said to have received at least £150,000 in total remuneration, marking a further increase on the previous year.

The report also claims that the highest-paid council employee earned £457,500, although it does not identify the individual or provide a breakdown of the role or compensation structure.

The figures are likely to fuel debate over public sector pay levels at a time when local authorities are under pressure from tight budgets, rising service demand and wider fiscal constraints.

Critics of high public sector salaries argue that pay at senior levels has drifted upwards too quickly, while supporters say councils must offer competitive packages to attract experienced professionals capable of managing complex services and multi-million-pound budgets.

The findings are expected to intensify political scrutiny of local government pay structures, particularly as central government continues to emphasise efficiency and value for money across the public sector.

John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Taxpayers are caught in a pincer movement with a record-breaking tax burden on one side and a bloated public sector feathering its nest on the other.

“Our latest Town Hall Rich List exposes a surging class of council bosses enjoying six-figure packages, even as they plead poverty, slash frontline services, and hike council tax bills far beyond inflation.

“Residents can see exactly how many local bureaucrats are receiving plush packages and judge for themselves whether they’re getting value for money.”

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