A quango is a quasi-autonomous non-governmental organisation. While there is no single definition of a quango, the Cabinet Office classifies what it calls ‘arm’s length bodies’ (ALBs) as public sector organisations that operate outside of direct ministerial authority. ALBs fall into three main categories: executive agencies, non-departmental public bodies (NDPBs) and non-ministerial departments.[1]
Quangos are funded through a mix of income streams, including government grants, contract income, donations and the collection of fees and levies. While some depend largely on public funding, many raise significant revenue by charging individuals, businesses or sectors they regulate. These funding arrangements are central to understanding how quangos operate, their accountability and the financial burden they place on taxpayers and the wider economy.
This note examines the total fees and levies charged by quangos in 2022-23. This is the first time the Cabinet Office has published data on quango income from fees and levies, so comparisons with previous years are not possible. However, the figures offer a starting point for greater scrutiny of ALB funding.
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Key findings
- ALBs charged a total of £9.5 billion in fees and levies in 2022-23, accounting for 2.6 per cent of the £363 billion total income budgeted for ALBs in the year.
- Homes England raised the most in levy and fee income in 2022-23, at almost £1.1 billion. This was 21 per cent of the total budgeted income for the ALB during the year.
- In 2022-23, 17 ALBs received 100 per cent of their budgeted income via fees and levies.
- A total of 21 quangos received at least £100 million in fees and levies, and 104 at least £1 million.
- Executive NDPBs raised over £5.8 billion from fees and levies in 2022-23, an average of £49.4 million per body. This was 62 per cent of the total across all ALBs.
- The Driver Vehicle and Standards Agency received £401.9 million in fees and levies, this was over 94 per cent of the total budgeted income for the ALB in 2022-23. Three quarters of driving test centres are currently at the maximum 24-week wait time to book a practical test.[2]
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[1] Cabinet Office, Guidance – Public Bodies, 7 January 2025, www.gov.uk/guidance/public-bodies-reform (accessed 13 May 2025).
[2] Edgington, T. & Reuben, A., Three quarters of driving test centres at maximum wait time, BBC, 23 April 2025, www.bbc.co.uk/news/articles/cvg91n5v44ko, (accessed 13 May 2025).