BBC cuts 2,000 jobs, but still pays 274 ‘stars’ £65m a year
contribution by Rachel Oldroyd
The BBC yesterday announced details of how it intends to save £670m a year by 2016 in a plan which will have an impact on every corner of the corporation and see as many as 2,000 jobs axed.
The budget for BBC News will be cut by £24m a year with further ‘limited reductions’ in current affairs across television and Radio 4. These proposed cuts will see the Politics Show axed and replaced by a weekend version of Daily Politics. World Service and BBC News will be brought more closely together with the aim of producing One BBC News.
A 55-page document, outlines the proposed cuts. The document does much to try to address fears that the cuts will impact the news output of the BBC.
The intention, it suggests, is to cut duplication and make news production more efficient. Indeed its flagship current affairs show, Panorama is to be given an increased investigations fund. This news organisation applauds this particular move.

Impacting news
But full details of the proposals are starting to filter down into the newsrooms of the BBC. Helen Boaden, head of news, has already revealed that 800 jobs will be lost and that funding for Radio 5 Live will be cut by 20% including the loss of 5 Live investigates.
Already insiders are suggesting that despite promises the plans will have an impact on an already stream-lined news function.
Reporters, for example, will be pooled across Today, World at One, PM, the World Tonight and Newsnight. Currently these programmes have their own dedicated reporters, often working in competition. While duplication in back-office support may not be a good thing, competition across programmes often produces better journalism.
Furthermore insiders say that the new, pooled team of reporters will mean three reporters will be cut from the radio-side alone.
These are the people that produce what the BBC management describes as ‘the best journalism in the world’ and are the reason that ‘the standards, breadth and timeliness of its news output form the bedrock of the trust placed in the Corporation.’
The document goes on to outline how other areas of the corporation will be impacted by the cuts. BBC Four will, for example, see a 9.6% cut to its budget and Radio 4 Extra a 17.2% cut.
The proposals also outline a very ambitious plan to cut management, axing 150 senior managers. This it claims will reduce management numbers by 20% and its cost by 25%.
Talented pay
What isn’t touched on, however, is the far more difficult issue of the many high salaries paid out to talent.
Earlier this year, under increased public pressure, the BBC revealed for the first time that 19 radio and TV stars were paid more than £500,000 and that a total of £14.6m was paid out to ‘talent’ earning more than £1m.
The BBC’s annual report, boasted it had cut overall spending on presenters, journalists and musicians by £9m and that nearly a third of this – £2.9m – related to those earning more than £100,000.
But the cut to high-paid talent amounted to just 4.1%, a tiny fraction more than the 4% cut made to the BBC’s overall staffing costs.
In other words, the BBC cut its talent bill in line with other staff cuts. So much for cutting back on talent.
The Corporation also paid out £65m to just 274 members of its ‘talent’ – those earning six or seven figure salaries.
The majority of the BBC’s ‘talent’ earn less than £50,000 – 50,029 people in fact. Yet this massive pool cost the Corporation £140m, just over double that paid out to its super-talent.
Many of those earning less than £50,000 would only have been employed for a very short period – an extra in one show for example – so the comparison is not totally fair. What the comparison does reveal, however, is just how much a small number of people earn.
The BBC will argue it needs to pay ‘stars’ such high rates, otherwise they would jump ship and go to rival, commercial channels. The answer to this is: really? How many other similar high-end openings are there? Freelancers in television often struggle to earn over £30,000 a year, let alone four times this.
Before the BBC starts cutting into its bedrock news coverage, perhaps it should properly address the money paid out to some of the stars that earn well-over six figure salaries. If the Corporation can justify reducing its senior management bill by 25% by the end of this year, surely it can shave a bit more than 4.1% off the £65m it pays out to highly-paid stars?
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Article first published by Rachel at The Bureau of Investigative Journalism
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Reader comments
“The Corporation also paid out £65m to just 274 members of its ‘talent’ – those earning six or seven figure salaries.”
At an average of around £230,000 per “star” that hardly puts them in the same category as Premiership footballers does it?
I don’t think the amount BBC pays to stars is the key factor in the BBC’s current problems.
Given the disparity in levels of workload between talent, and the inability to compare exactly what is being given for the amount of money paid, it’s more than a little unfair to rail on the talent that have, by all accounts that I’ve read, been cautiously engaging in processes to reduce their pay.
The reality though, as with any job, is that if you reduce people’s pay too much below market rate, there is only so much that a “love” for the organisation can fill that divide before it is taken over by resentment of being disrespected.
This kind of article stinks for me anyway, the problem with the BBC isn’t it’s wage bill, it’s that it’s being asked to cut it’s spending at all. Why engage with the rhetoric that the BBC could be cutting this or that, when the reality is that an average £15ish rise over the next few years to the BBC budget could stop these cuts in their tracks, independently of any other review in to the effectiveness of spending.
“The budget for BBC News will be cut by £24m a year ”
Oh, great. So more press releases from the odious “Taxpayers’ Alliance” will be presented as news items.
The BBC will argue it needs to pay ‘stars’ such high rates, otherwise they would jump ship and go to rival, commercial channels.
And the problem is?
There must be thousands of talented people who would work for the BBC for nothing and it should not be trying to compete on the same playing field as commercial channels when they cannot extort money from citizens with the support of the state.
@4 – Ah yes, because it’s state funded people should work for them for nothing.
…
You once more parody your own views. Anything which is state funded has to be wrecked and ruined…
@ 5
I certainly wouldn’t agree that Beeb employees should work for nothing, or even for low wages. But the BBC does have a different brief than the commercial channels (i.e. its job is not simply to make as much money as possible).
As such, I think the BBC can do a good job without competing frantically with ITV etc for prime-time viewing figures. It would still need well-paid professional staff, but not celebrity presenters being paid six-figure salaries.
@6 – Without celebrities, the truth is that the audience would bleed away to other channels, and the BBC would be left producing news and a few dry documentaries.
And of course the Tories would take the lack of popularity as an excuse to shutter the BBC for good.
How come as many as 300 “senior managers” are to lose their jobs in the BBC? How ever will the BBC manage without them?
@ 7 Leon
“Without celebrities, the truth is that the audience would bleed away to other channels, and the BBC would be left producing news and a few dry documentaries.”
I’m sure that this would happen if the BBC took away enough of its big draws. However, I suspect it could lose a few expensive celebs (along with reality TV rubbish, unless that brings in more money than it costs) without destroying itself as a relevant channel.
“And of course the Tories would take the lack of popularity as an excuse to shutter the BBC for good.”
Very good point.
@ 5 Leon
The BBC is funded by, in the main, the Licence Fee, which is paid by the people of the UK (mainly taxpayers) and not the ‘state’. It is not ‘state funded’.
On a wider point – maybe now is the time to schedule the end the licence fee and give the BBC 5 years to go commercial?
@ 10 Max
“The BBC is funded by, in the main, the Licence Fee, which is paid by the people of the UK (mainly taxpayers) and not the ‘state’. It is not ‘state funded’.”
Close enough for government work. It’s state-controlled (albeit in a hands-off kind of way) and paid for by the majority of households. I admit it’s a bit of a special case, but I don’t think calling it “state-funded” is inaccurate in any important way.
“On a wider point – maybe now is the time to schedule the end the licence fee and give the BBC 5 years to go commercial?”
Let’s not. I really don’t want to see total private control over one of the most important media. Compare our news reporting to America’s.
@11 Chaise
If the Licence fee were a tax then your point would be more relevant. But it isn’t – it is an anomaly in that it is not a tax but failure to pay lands you in jail, unless you can prove that you don’t have a TV or a PC with a TV card in, or some such nonsense. It is, I understand, a criminal act not to pay, whereas not paying (eg) Sky is a civil issue.
Why is this in 2011? Why cannot I just watch everything else but the BBC and not pay for the BBC?
As for news reports – comparing the BBC to Sky would be more relevant. You may not like the Sky coverage – but you can choose not to pay for it, or watch it. Whereas I cannot choose not to pay for the BBC because someone (you?) has decided it is better and good for me.
OT – I llistened to Sunny on R4 this morning being roughed up by a professor who said ‘the BBC has enough money – just get on with it’.
@ 12 Max
Like I said, I treat it like a tax. After all, most taxes aren’t paid by everyone – you still get the benefits of income tax if you’re too poor to pay it, for example. And the whole point of taxes (and things like them) is to pay for things at the local or state level. My taxes go to all sorts of things that I don’t directly benefit from. I don’t see that the BBC’s so different.
And no, it’s not that you need to watch the Beeb because it’s “good for you”, it’s that we as a nation benefit from having a mix of private and state ownership of media. Telling me that I can pay to watch Sky suggests you kinda skipped over that point in my last post.
I thoroughly applaud the BBC in cutting the funds to its news broadcasts.
Firstly,even in its heyday, its news coverage ,with the exception of newsnight, was pretty awful. Now it is running scarred from the Tories its pretty much an expensive version of the Daily Mail. Whilst its breakfast news is totally nauseating its running news commentary throughout the day is typically banal. Personally I can easily make do with channel 4 and the esteemed organ to which I am currently writing.
We dont really need state TV do we?
1. Martin McGrath
At an average of around £230,000 per “star” that hardly puts them in the same category as Premiership footballers does it?
The average level of talent among the BBC’s “stars” hardly puts them in the same category as Premiership footballers.
I don’t think the amount BBC pays to stars is the key factor in the BBC’s current problems.
No but the mentality is the problem – there are any number of people who could do good TV. The BBC needs to pay its executives and “stars” much less and spend more time looking for people who could be the next big thing. It is a niche broadcaster. It needs to find the right niche, a good niche, and stay there.
Reactions: Twitter, blogs
- Liberal Conspiracy
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Nev Eryoumind
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Mark Forskitt
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Rory Murray
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Sara Palmer
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Martin McGrath
RT @libcon: BBC cuts 2000 jobs but still pays 274 stars £65m a year http://t.co/nT84xh4L <- £230k each average. Not premiership footballers.
- James Dennis
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Gael
RT @libcon: #BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/Rlr50wTD
- Helen Robertson
BBC cuts 2,000 jobs, but still pays 274 ‘stars’ £65m a year | Liberal Conspiracy http://t.co/6i5eeywc via @libcon
- Sheena
RT @libcon: #BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/Rlr50wTD
- Peter Lesniak
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- cllrdarrenfower
BBC cuts 2,000 jobs, but still pays 274 ‘stars’ £65m a year – http://t.co/JgQtJtIm
- AntennaRed
MEDIA: #BBC Cuts 2,000 Jobs But Still Pays 274 'Stars' £65m a Year http://t.co/An4c8nW5 #journalism #press #media #corporatemedia #UK #news
- Alex Braithwaite
BBC cuts 2,000 jobs, but still pays 274 ‘stars’ £65m a year | Liberal Conspiracy http://t.co/rM6MLs11 via @libcon
- A Man Called Wood
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Karen Hackett
BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/D5dzMPpL
- Oscar
RT @karen_hackett RT @libcon: BBC cuts 2,000 jobs, but still pays 274 'stars' £65m a year http://t.co/E0lPGbQG
- MayorWatch
@smalltown2k http://t.co/DHrWbybA
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