Student loans chief Ed Lester to stand down
Friday 25 May 2012
Student Loans Company head Ed Lester will stand down when his
contract expires next year in the wake of controversy over his tax
Mr Lester was paid through a company in order legally to reduce his liability for tax until ministers intervened in February this year.
The Student Loans Company said his contract expires at the end of January next year and work had begun to recruit his replacement.
A Student Loans Company spokeswoman said: "Ed Lester's two-year contract ends on January 31 2013.
"The process to recruit his replacement is under way now to ensure that there is a smooth handover in the change of leadership at the Student Loans Company."
The arrangement for Mr Lester's pay was disclosed in an HM Revenue and Customs (HMRC) letter obtained under the Freedom of Information Act by Exaro News and BBC Newsnight.
Following the revelations in February, Treasury Chief Secretary Danny Alexander said the way in which Mr Lester received his £182,000 salary would be changed and launched a review of similar arrangements across Whitehall.
The review identified more than 2,400 cases of public sector staff being employed indirectly - some potentially avoiding full income tax for a decade or more.
Since January, 350 such contracts have been ended and tighter rules have now been introduced.
Yesterday Mr Alexander said everyone in the public sector "should be on the payroll and paying the correct amount of tax".
Fracking is turning the US into a bigger oil producer than Saudi Arabia
Missing Malaysia Airlines plane: Details emerge of two young Iranians using stolen passports in search for a better life
Three-quarters of Britons are saying it wrong - the top ten most common mispronunciations
Oscar Pistorius trial: Athlete's friend asked him if 'he was f***ing mad' after shooting through sunroof
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Exclusive: Impact of immigrants on British workers ‘negligible’
Katie Hopkins continues campaign to become Britain's most hated talking head with poorly timed Bob Crow tweet
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 1 Three-quarters of Britons are saying it wrong - the top ten most common mispronunciations
- 2 Watch: The student election Macklemore parody that isn't completely awful - and all the others that are
- 3 Son attacks Apple after it refuses to unlock his late mother’s iPad
- 4 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 5 First Kiss: Filmmaker gets 20 strangers to make out on YouTube with awkward results