Paymaster General


Her Majesty's Paymaster General or HM Paymaster General is a ministerial position in the Cabinet Office of the United Kingdom. The incumbent Paymaster General is Penny Mordaunt.

History

The post was created in 1836 by the merger of the positions of the offices of the Paymaster of the Forces, the Treasurer of the Navy, the Paymaster and Treasurer of Chelsea Hospital and the Treasurer of the Ordnance.
Initially, the Paymaster General only had responsibilities in relation to the armed services but in 1848 two more offices were merged into that of Paymaster General: the Paymaster of Exchequer Bills and the Paymaster of the Civil Service, the latter followed by its Irish counterpart in 1861. They thus became 'the principal paying agent of the government and the banker for all government departments except the revenue departments and the National Debt Office'.
From 1848 to 1868, the post was held concurrently with that of Vice-President of the Board of Trade.
The longest-serving holder of the post was Dawn Primarolo, whose portfolio covered HM Revenue and Customs, and who served from 1999 to 2007.

Role

Today, the Paymaster General is usually a minister without portfolio available for any duties which the government of the day may designate. The post may be combined with another office, or may be left unfilled.
Though the Paymaster General was titular head of the Paymaster General's Office, his or her executive functions were delegated to the Assistant Paymaster General, a permanent civil servant who was answerable to the Chancellor of the Exchequer.

Office of HM Paymaster General

The Paymaster General was formerly in nominal charge of the Office of HM Paymaster General, which held accounts at the Bank of England on behalf of government departments and selected other public bodies. Funds which were made available from the Consolidated Fund were then channelled into OPG accounts, from where they were used by the relevant body. OPG operated a full range of accounts and banking transaction services, including cheque and credit, BACS and CHAPS services for its customers via an electronic banking system. Integration of OPG accounts held with commercial banks was provided by the private company Xafinity Paymaster which is now part of the Equiniti group.
However, in 2008, the government announced that the Office of the Paymaster General would be incorporated into a new body, the Government Banking Service, which also provides banking operations for HM Revenue & Customs and National Savings and Investments. Following the Bank of England's decision to withdraw from providing retail banking services, retail banking and payment services for the GBS are provided by a range of financial institutions including Barclays, Citibank, NatWest, Bottomline and Worldpay. although the Bank of England still plays a role in managing the government's higher level accounts.

List of paymasters general

19th century