A significant disparity in pay increases has emerged at the BBC, with a record 130 executives now earning over £178,000 annually, while rank-and-file staff were offered raises of only 1.5 percent. This widening gap comes as the corporation faces scrutiny over its funding model, with potential changes to the license fee on the horizon.
Overall, 61 executives received pay raises exceeding £10,000 this year. The BBC is required to disclose the compensation of any employee earning more than £178,000 in its annual report. In the past year, executives earning above this threshold collectively received £31 million, a notable increase from £15.4 million in the 2022/23 financial year.
These raises were implemented despite a significant decline in license fee payments. Last year, 539,000 households stopped paying the fee, reducing the total number of households funding the corporation to 23.3 million, the lowest figure since 1999.
Among the top earners, BBC's chief content officer Kate Phillips saw her potential pay rise from £314,999 to £459,999. Rhuanedd Richards, whose title changed from 'Nations Director' to 'Interim Director, Nations,' received the second-largest increase, with her salary climbing from £194,999 to £279,999. Director of news John McAndrew's pay rose by £60,000 to £289,999 following a role change. Similarly, director of sport Alex Kay-Jelski's salary increased by £60,000 to £294,999, despite no change in his job title.
Storm Fagan, formerly chief product officer and now chief technology and product officer, received a £55,000 increase, bringing her pay to £409,999. Even Deborah Turness and Tim Davie, who resigned in November amid controversy, received pay increases before their departures. Ms. Turness's salary rose by £15,000 to up to £449,999 for 2025/26, and Mr. Davie's increased by the same amount to up to £559,999.
Director-general Matt Brittin has defended the BBC's practice of offering competitive salaries to attract talent, while also stating he would review the number of senior managers. The number of HR directors earning over £178,000 has more than tripled in three years, from three in 2022/23 to 11.
In contrast, the average annual pay increase for license fee payers was 4.1 percent, with other rank-and-file staff receiving only 1.5 percent. The corporation also issued 292 redundancy payments exceeding £100,000 last year, totaling £37.1 million.
A BBC spokesperson attributed the pay increases to promotions to more senior roles and increased responsibilities, occurring within a highly competitive market. The corporation also faced scrutiny over hospitality offerings at the Proms festival, where guests reportedly received reduced catering, with one instance of hors d’oeuvres being replaced by pub snacks to save an estimated £2,000 annually.