- Jeremy Heywood will replace Cabinet Secretary
Last updated at 1:04 AM on 12th October 2011
Standing down: Sir Gus O'Donnell announced today that he is retiring at the end of the year
Britain's most powerful civil servant will retire at the end of the year with a 2.3million pension pot.
Sir Gus O'Donnell's 240,000-a-year job is to be split into three to try to curb the influence of the post of Cabinet Secretary.
As well as being head of the Civil Service and in charge of the Cabinet Office, the 59-year-old has worked closely with four prime ministers and organised last year's Coalition negotiations.
The fact that Sir Gus, who is likely to join the Lords, has been allowed early retirement at a time when public sector staff are being told to work longer before drawing their pensions enraged unions yesterday.
Mark Serwotka, of the Public and Commercial Services union, said: 'At a time of record public sector job cuts, civil servants who are suffering a pay freeze and facing a raid on their pensions will be angered by what appears to amount to a job-creation scheme for the Civil Service elite.
'While Gus O'Donnell heads for the House of Lords, pocketing a pension worth around 30 times more than the average for his staff, the future looks decidedly more bleak for the ranks of public servants who provide essential services day in, day out.'
John Spellar, a former Labour minister, said: 'It looks like one law for those at the top and another for those at the bottom.'
Sir Gus's 2.3million pension pot after 36 years of service is the equivalent to an annual payment of 105,000 and a lump sum of 315,000.
Advice: Sir Gus with Samantha and David Cameron, his fourth prime minister
David Cameron announced Jeremy Heywood, currently permanent secretary at Number 10, will become Cabinet Secretary and provide advice to him and Nick Clegg.
Another mandarin will be made head of the Civil Service, responsible for providing professional and corporate leadership to civil servants.
New role: Jeremy Heywood will replace Gus O'Donnell, combining his job with his role as Permanent Secretary at No 10
And there will be a separate permanent secretary in charge of the Cabinet Office, responsible for 'joined-up government' and cutting costs.
There has long been disquiet among the Tories that the Cabinet Secretary – nicknamed GOD from his initials – held too much sway. They fear Whitehall technocrats have become more powerful than elected ministers.
Backbencher Douglas Carswell said yesterday on his blog: 'It is these permanent officials that really decide most public policy. All too often, elected ministers end up as mere mouthpieces for the machine.
'It is precisely because we have such a smug, insulated technocracy in charge that voters are left complaining that no matter who they vote for, things rarely seem to change.'
Asked why the job of Cabinet Secretary was being split, the Prime Minister's official spokesman said: 'He is head of a department that has around 2,000 people.
'You are head of the Civil Service and all the permanent secretaries report to you, and you are secretary to the Cabinet and principal adviser to the Prime Minister. It is a very big job.'
If Sir Gus wants to move to the private sector, he will have to submit his bid to the Advisory Committee on Business Appointments. It allows former civil servants to take up such positions within as little as three months.
yet more jerry-mongering from cameron and co !!!!
- terry, a bosun at sea, 12/10/2011 05:16
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