Professional Documents
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Introduction
Introduction
Administrative classification will provide departments with the guidance and ability to create
arms length bodies that fulfil their governance objectives within a clear, consistent and
comparable system. This system will lead to a simplified and more transparent public bodies
landscape, promoting greater accountability. It will provide a clear and intelligible map of the
landscape and aid public and internal understanding of relationships between public bodies
and government ministers. It will also promote efficiency and effectiveness, helping to drive
strategic reform of the landscape and the development of best practice models.
This Classification of Public Bodies document is departmental guidance from the Cabinet
Office. It sets out the different categories of the UKs public bodies, and:
provides a high level introduction to the early decision making process for establishing different
types of public bodies;
summarises and provides a first point of reference on the main characteristics of each of the
ALBs that the Cabinet Office focusses on, as well as those of other forms of public bodies; and
provides information on the some of the now defunct or legacy forms of public bodies that
still exist.
This document is to be read as an introduction and high-level guide for establishing public
bodies. It should be read in conjunction with the rest of the Public Bodies Guidance Handbook,
which will cover in more detail the actual steps required to setting up ALBs, and related
issues. Part 1 of the Handbook provides guidance on the classification of public bodies and
provides definitions of the categories of public bodies that operate within the public sector.
The main focus is on arms length bodies, though for context it also provides an overview
of public corporations, certain Parliamentary bodies, public bodies belonging to the Devolved
Assemblies, Local Government public bodies and some entities that operate within Ministerial
Departments. Whilst there may be other entities that perform a public or Government function
unless they fall into the above forms, they are out of scope, as are private sector entities. It
updates and replaces the Categories of Public Bodies: A guide for Departments issued by
the Cabinet Office in April 2012.
Introduction
Public bodies are diverse, which means classification is not always a simple process. For ease
of reference, and to help departments understand the different delivery models that exist, this
guidance sets out the main categories of public body. This guidance covers:
The ALBs that are classified.
Other non-classified central government and parliamentary entities.
Department Specific, Devolved Assembly and Local Government public bodies.
Public corporations.
The information on bodies that are not administratively classified has been included to provide
an overview of the wider UK public bodies landscape. It does this in a way that allows for
relatively easy comparison between these different types of public bodies, by looking at
the sorts of factors that impact on their design and creation, then listing the key common
characteristics that make up and differentiate each category of public body.
Introduction
Public Bodies
A public body is a formally established
organisation that is (at least in part) publically
funded to deliver a public or government
service, though not as a ministerial department.
The term refers to a wide range of entities that
are covered as within the Public Sector. This
does not include forms of public entity that
do not require staff to carry out their functions,
such as public funds or trusts.
Charities
It is worth noting that some Public Bodies are
also classified and registered as charities by
the Charities Commission. This is a separate
system of classification that applies to
institutions that are established for charitable
purposes only and subject to the control of
the High Courts charity law jurisdiction. This
is mentioned for information only, and is not
within the scope of this document. More
information about UK charities can be found
here: https://www.gov.uk/government/
publications/what-makes-a-charity-cc4/
what-makes-a-charity-cc4
Chapter One
Yes:
Required
Function
Yes: Consider
Next Step
Similar: Link
To Existing
Entity
Yes: Consider
Next Step
Commercial: Provided
By Public Corporation
(Chapter 6)
Non Commercial:
Look To Provider
Gov: Provided By An
Arms Length Body
(Chapter 2) Or Within
Department (Chapter 3)
Parlt: Provided By
Entity Set Up By
& Accountable To
Parlt (Chapter 4)
LG or DA: Provided
By Entity Set Up By
& Accountable To LG
Or DA (Chapter 5)
1.2.2. Non-Classified
Government Entities:
1.2.3 Non-Classified
Parliamentary Bodies:
Chapter Two
Administrative
Categories available:
Yes
Accepts Direct
Funding. Close Dept.
Policy Alignment
Executive Agency:
Arm Of Department,
No Separate Legal
Personality
NDPB
Yes: Delivered
Internally Within
Ministerial Department.
See Chapter 3
NDPB With
Advisory Function
Non Ministerial
Department: Distinct
From Dept., Usually
Separate Legal Personality
Independent
Monitoring Board
11
Examples
Comparable Characteristics
Determinant Factors:
Oversight / Accountability:
Dept sets policy, minister accountable to
Parliament.
Sources Of Income:
Included in home dept estimate.
Exceptions
Trading Funds: Usually EAs that are specially
classified by ONS as public corporations.
They are a means of financing the revenuegenerating operations of a Department or
public body which takes them outside the
supply process. They are not separate legal
entities and remain part of a Department
(or are Departments in their own right).
Trading funds are no longer an option for
EAs. Existing funds will be reviewed in the
ordinary course of business and can be
reclassified if necessary (see chapter 6).
NMDs with EA Status: For a variety of
historic reasons the previous classification
system allowed a number of EAs to be dual
classified as NMDs. This resulted in a lack of
consistency between NMDs, and possible
conflicts of governance. In future dual EA/
NMD classification is not an option. Existing
EAs with dual NMD classification will be
reviewed in the ordinary course of business
and can be reclassified if necessary.
Duration:
Permanent.
Appointments:
Minister appoints CEO via a civil service
commissioners appointment, and non-exec
chair.
Policy Alignment.
Executive Agency
Yes
Staffing:
Civil servants.
No: Requires
External Technical
Expertise, & Political
Impartiality
Accepts Direct
Funding.
Close Dept.
Policy Alignment
Accounting:
Produce their own but consolidate with home
dept.
12
Examples
Comparable Characteristics
Determinant Factors:
Oversight / Accountability:
Dept. usually sets strategic framework, minister
accountable to Parliament.
Exceptions
There are three NDPBs that are also Crown
entities, meaning they are not as separate
from the Crown as other NDPBs. This has
various effects, such as allowing them to
employ civil servants.
These are included here as an explanation
of the landscape but are exceptions to the
rule. As such new Crown NDPBs should not
be established in this manner.
Their sources of income: included within
home department estimate, usually delivered
as grant in aid (though with levy or charges),
less likely to alternative fund raising. Their
staffing: civil servants.
Sources Of Income:
From Dept. estimate, usually delivered as grant
in aid; other sources can include levy powers
and charitable donations.
Setup & Position In Government:
Established and sponsored by Dept. with
own separate legal personality, outside of
the Crown.
Duration:
At least three years.
Appointments:
Ministers normally appoint the chair and all
non-executive members, and are consulted
on the appointment of the CEO.
NDPB
Yes
Staffing:
Public servants
No: Requires
External Technical
Expertise, & Political
Impartiality
Accounting:
Produce own, consolidated within home Dept.
13
Examples
Advisory Council on the Misuse of Drugs,
Boundary Commission for England.
Determinant Factors:
Yes
No: Requires
External Technical
Expertise, & Political
Impartiality
Comparable Characteristics
(where different to NDPBs above)
Oversight/Accountability:
Dept. usually sets strategic framework,
advice is impartial and apolitical, with minister
accountable to Parliament.
Sources Of Income:
Included in Dept. estimate.
Setup & Position In Government:
Independent of but established by Dept.
without separate legal personality.
Appointments:
Minister appoints members.
Staffing:
Committee of Independent specialists
(supported by Dept. civil servants as a
secretariat).
Accounting:
Do not produce their own any income
or expenditure forms part of the Dept.s
accounts,
Examples
HMPs Pentonville, Long Lartin and Wormwood
Scrubs.
Determinant Factors:
Comparable Characteristics
(where different to NDPBs above)
Sources Of Income:
Included in Dept. estimate.
Setup & Position In Government:
Set up alongside new prisons, without separate
legal personality.
Duration:
Dependent on their home prison.
Appointments:
Secretary of State appoints board.
Staffing:
Unpaid volunteers as board.
Accounting:
Do not produce their own any income or
expenditure forms part of the Dept.s accounts,
Yes
No: Requires
External Technical
Expertise, & Political
Impartiality
14
Examples
Comparable Characteristics
Oversight / Accountability:
Sets own delivery policies, though Dept. can
set the strategic framework, usually minister
accountable to Parliament.
Exceptions
There are some examples of NMDs that
also hold Executive Agency status, which
has resulted in a lack of consistency
between NMDs. Whilst in practice there is
a dominant choice of governance structure,
on paper there are conflicts between the
two categories. As such this practice is
to be avoided, and no future NMD should
be given dual NMD and Executive Agency
status. Existing multi-classified bodies will be
reviewed in the ordinary course of business
and have their classification reassessed if
and where necessary.
Determinant Factors:
Is it necessary for the Government
to provide the service or function?
Yes
Should the service be delivered
Sources Of Income:
Usually from own estimate; other sources can
include levy powers.
Duration:
Permanent.
Appointments:
Sponsoring minister usually appoints board
members, though usually subject to preappointment scrutiny by parliament.
a ministerial department?
Externally
Yes
No: Requires
External Technical
Expertise, & Political
Impartiality
Staffing:
Civil servants.
Accounting:
Produce own accounts.
15
Chapter Three
Yes
Yes: Delivered
Internally Within
Ministerial
Department.
Project Or Taskforce
In Dept: Requires
Individual Treatment.
Office or
Taskforce.
Working
Group.
Expert
Committee.
Statutory
Office
Holder.
Department
Specific
Public Body.
There now follows a breakdown covering each of the non-administratively classified government options available.
17
Comparable Characteristics
Determinant Factors:
Oversight/accountability:
Part of Dept. as such sets own policy,
minister accountable to Parliament.
Sources of Income:
Included in Dept. estimate.
Examples
Better Regulation Executive, Office of Tax
Simplification
Staffing:
Civil servants, with external support if required.
Accounting:
Does not produce own, any income or
expenditure included in Dept. accounts.
18
Comparable Characteristics
Determinant Factors:
Oversight / accountability:
Part of Dept. as such sets own policy,
minister accountable to Parliament.
Sources of income:
Included in home Dept. estimate.
Examples
Stakeholder Working Group on Unrecorded
Public Rights of Way, and the Purchases
Survey External Stakeholder Working Groups
Staffing:
Civil servants, with external support if required.
Accounting:
Does not produce own, any income
or expenditure included in Dept. accounts.
19
Comparable Characteristics
Oversight / accountability:
Dept. usually sets strategic framework,
advice is impartial and apolitical, with
minister accountable to Parliament.
Examples
Expert Committee on Pesticides, and
the Workplace Health Expert Committee.
Sources of income:
Included in home Dept. estimate.
Setup & Position In Government:
Independent of, but established by and seated
within Dept. without separate legal personality.
Duration:
Varies, though usually permanent.
Appointments:
Flexibility for Minister or Dept. officials to
appoint members (and chair if there is one).
Determinant Factors:
Is it necessary for the Government
to provide the service or function?
Yes
Should the service be delivered
or administered internally within
a ministerial department?
Internally
Is this function carried out as a discrete
project within the Dept. by its staff, or
by external staff?
Attached to Dept. though separate
Resulting option, dependent on
function and staffing:
Expert Committee
Staffing:
Independent external experts, supported by
civil servants.
Accounting:
Does not produce own, any income or
expenditure included in Dept. accounts.
20
Examples
Comparable Characteristics
Oversight/accountability:
If part of Dept., acts apolitically, with minister
accountable to Parliament. If independent of
Dept., reports directly to Parliament.
Sources of income:
Depending on who establishes, may be via
grant in aid, or exceptionally own estimate.
Setup & Position In Government:
Set up either by legislation or prerogative,
to work on behalf of the Crown or not, as
appropriate. Can have separate legal
personality as a corporation sole.
Duration:
Varies, though usually permanent.
Determinant Factors:
Is it necessary for the Government
to provide the service or function?
Yes
Should the service be delivered
or administered internally within
a ministerial department?
Internally
Is this function carried out as a discrete
project within the Dept. by its staff, or
by external staff?
Attached to Dept. though separate
Resulting option, dependent on
function and staffing:
Statutory Office Holder
Appointments:
Minister appoints Office Holder.
Staffing:
Sole Office Holder (public servant), can be
supported by civil servants on Dept. loan or
have powers to employ staff.
Accounting:
Produces own accounts.
21
Determinant Factors:
Examples
22
Chapter Four
4.1 Parliament
Also known as the Legislature, Parliament is
made up of three central elements: the House
of Commons, the House of Lords and the
Monarchy. The majority of its business occurs
in the two Houses. It is the highest legislative
authority in the UK, scrutinising the work of
the government and examining, debating and
approving new laws. Parliament also holds
the power to set certain taxes and debate
the important issues of the day.
Government
The Prime Minister and Ministers (who head
departments) that make up the government
are themselves drawn from Parliament. While
government and Parliament work closely
together, they are separate institutions with
separate functions. Also known as the
Executive, the government has responsibility
for developing and implementing policy and
for drafting laws.
Comparable Characteristics
Oversight / accountability:
Usually sets own policy and directly
accountable to parliament.
Examples
National Audit Office, Independent
Parliamentary Standards Authority
Sources of income:
Usually has own estimate.
Setup and Position In Government:
Usually established by legislation with separate
legal personality. Not part of the executive.
Duration:
Varies, though usually permanent.
Appointments:
Usually headed by statutory board, appointed
by parliament.
Staffing:
Public servants, though can be supported by
civil servants on Dept. loan.
Accounting:
Produces own accounts.
24
Chapter Five
Exceptions
Category Specific Aspects
Local government public bodies vary widely
in terms of size, duration, function and
governance structure.
Examples
Age Concern Wiltshire, Colchester Port,
Transport for London.
26
Exceptions
Sectoral Classification
Examples
Scottish Further Education Unit, Belfast
Health and Social Care Trust, Sports Council
for Wales.
27
Chapter Six
Public Corporations
28
29
Chapter Seven
Genuinely Unique
& Unclassifiable
Awaiting Significant
Structural Change
Some currently unclassified ALBs may
be awaiting modification to their structure
or governance which would impact on
administrative classification. In such cases,
it would be practical to await the outcome
of the changes before formal classification,
though Departments will be encouraged to
notify the Public Bodies Reform Team to advise
on how classification should be addressed in
the interim.
31
32
Annex A
34
35
A.4 Appointment
& Management
Established by Department
set up by ministerial fiat
Executive appoints
Established by Parliament
set up by Parliament
Statute
set up and operates under legislation
Non-executive appoints
Department
part of and set up by Government
Independent no direct connection
to Government, usually for certain types
of public corporation
36
37
Annex B
Relationship To Department
Accountability
Oversight
Executive Agency
Minister
accountable
Dept.
sets policy
Non Departmental
Public Body
Minister
accountable
NDPB with
Advisory Function
Income / Funding
Establishment
Status of Staff
Financial
Accounting
Position
Setup
Duration
Management
Appointments
Included In
Dept. Estimate
Part Of Dept.
No separate
legal personality
By Dept. Can be
with legislation
Permanent
CEO, &
Non-Exec Chair
Minister appoints
CEO & Chair
Civil Servants
Produce own,
Consolidated within
Dept.
From Dept.
Usually via
grant In aid
Has separate
legal personality
By Dept. Various
forms.
At least
three years
CEO, &
Non-Exec Chair
Minister appoints
Chair & Non-Exec
Board, consulted
on CEO
Public Servants
Produce own,
Consolidated within
Dept.
Minister
accountable
Included In
Dept. Estimate
Independent
of but established
by Dept.
At least
three years
Committee of
independent
experts.(can have
Chair)
Minister appoints
members.
Independent
Specialists
(Supported By CS)
Do not produce
own, Covered
within Dept.
Independent
Monitoring Board
Minister
accountable
Included In
Dept. Estimate
Independent
to Dept. but no
separate legal
personality
On creation of new
prison or detention
centre
Depends
on prison or
detention centre
Board members
Secretary Of State
appoints members
Unpaid volunteers
Do not produce
own, Covered
within Dept.
Non Ministerial
Department
Minister usually
accountable
Usually As Dept.
with separate legal
personality
By Prime Minister
Permanent
CEO &
Non-Exec Chair
Minister usually
appoints Board,
with Parlt. scrutiny
Civil Servants
Produces own
accounts
Office of
Department
Minister
accountable
Included In Dept.
Estimate
Part Of Dept. No
separate legal
personality
By Dept.
Usually Dept.
official as head
Minister appoints
Head (and Board if
there is one)
Civil Servants
Do not produce
own, Covered
within Dept.
Working
Group
Minister
accountable
Included In Dept.
Estimate
Part Of Dept. No
separate legal
personality
Established by
Dept.
Usually members
and Chair
Minister or official
appoints members
and Chair
Civil Servants
(supported by
external Non-CS)
Do not produce
own, Covered
within Dept.
Expert Committee
Minister
accountable
Included In Dept.
Estimate
Within Dept. no
separate legal
personality
Independent of but
established by Dept.
Varies, usually
permanent
Committee of
experts (Can Have
Chair)
Minister or Dept.
Officials appoint
members (and
Chair)
Independent
Specialists
(Supported By CS)
Do not produce
own, Covered
within Dept.
Statutory
Office Holder
(Departmental)
Minister
accountable
Independent with
separate legal
personality
By Dept. via
legislation
Varies, usually
permanent
Office Holder
Minister Or Dept.
Officials appoint
Office Holder
Public Servant
(Supported By CS)
Produces own
accounts
Statutory Office
Holder
(Parliamentary)
Office
Holder directly
accountable
Independent with
separate legal
personality
By Parliament, via
legislation
Varies, usually
permanent
Office Holder
Parliament appoints
Office Holder
Public Servant
Produces own
accounts
Parliamentary
Body
Usually directly
accountable
Usually from
own Estimate
Independent with
separate legal
personality
Established by
Parliament
Varies, usually
permanent
Usually by
statutory board
Parliament appoints
Public Servants
Produces own
accounts
39
Annex C
Where there could be more than 5 committee members standing at any given time.
Where more than one committee member is needed to cover the same issue under
scrutiny, and / or individual members cannot cover multiple issues (due to specialist
skills required for each issue).
indicative of which
classification may
be suitable.
** If the committee has
between 5 and 10
features should be relied
upon to indicate which
Duration
* To be aware, these
Generally where the secretariat could be greater than 2 FTEs. Where the ANDPBs staff
/ secretariat do more than administration for example, if they are involved in research,
analysis or policy development. Noting, that if additional staff are required to conduct
delivery (eg investigation work), then perhaps regular NDPB might be a better model
such as the HSE.
Generally where the secretariat is usually fewer than 5 FTEs. Where the
Expert Committee does not require additional staff to conduct research,
analysis or policy development (such activities can be carried out by the
home department).
Statutory framework
There can be underlying legislation. This will be especially evident if the legislation
requires advice that could only be provided by a body with the characteristics of
an ANDPB. No separate legal personality.
category may
be suitable.
*** If the secretariat has
between 2 and 5 staff
/ secretariat, the other
features should be relied
upon to indicate which
category may
be suitable.
41
Establishment
Reviews
Commissions
Governance
Documentation
Does not require (though can still have) a Framework Document or MOU; will still
require a Terms of Reference document.
Board
Appointments
Relationship
Expertise
The best suited candidates are chosen as Committee members to provide advice in the field required.
Evidence / Advice
High quality, impartial (and where needed) and expert advice, based on
relevant evidence.
High quality, impartial (and where needed) and expert advice, based on relevant evidence.
Transparency /
Openness
42