Spies are quitting MI5 for private sector jobs with better pay, more career progression and improved work-life balance, security sources have said.
Britain’s intelligence agencies risk losing a key talent pool of spies as they grapple with budget cuts and increasing threats to the UK from hostile states, The i Paper has been told.
Intelligence sources and experts also previously said big tech firms such as Google and Meta are luring away prospective spies while they await vetting approval, which can take up to a year, with much higher salaries.
It comes after the Government announced a 14 per cent funding cut for intelligence agencies, including MI5, MI6 and the UK’s communications agency, GCHQ.
This led to a promotions freeze at MI5, as well as fewer resources for potentially sensitive operations aimed at keeping the UK safe, according to one source.
“Very significant” individuals are leaving UK intelligence, they said, adding: “It’s not just a freeze on promotions. As a result of spending cuts, operations have been halted.
“There are significant financial issues in defence and intelligence.”
Intelligence staff at MI5 were told about the promotions freeze shortly after the cuts were announced in the spring Budget, according to two intelligence sources who spoke to The i Paper.
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The freeze has led to retention issues, with younger officials in intelligence analysis roles seeking roles outside the public sector. The sources said they are in search of the higher salaries and better working conditions on offer at private intelligence and defence firms.
One of the sources left MI5 last year for a private sector role with substantially increased pay. They said they had previously passed up lucrative jobs, but hearing about the freeze after working “so hard to get in” was a “shitty deal”.
While MI5 does offer the chance to work from home, work-life balance is an issue due to the high-risk nature of the job. Monitoring and protecting the country against threats while being unable to offload entirely to their loved ones, due to strict secrecy laws – which is not an issue in the private sector – can take its toll.
A starting salary at MI5 is around £39,000 a year, with a promised increase to £42,000 after one year of service. But officials working their way through the ranks, seeking higher salaries, are believed to be frustrated with the lack of career progression.
While recruitment to MI5 has been healthy in recent years, retaining talent is a challenge as there are limited leadership roles, as is the case with many organisations, said Dan Lomas, an assistant professor of International Relations at the University of Nottingham.
He added that competition from the private sector where work-life balance, pay and career development is more attractive is now accelerating.
Frances Tammer, a professor in strategy and security at the University of Exeter, said: “With the expansion of the private intelligence sector over the past five to 10 years, it is not surprising it is proving increasingly attractive to those who otherwise sought to join, or are already serving, in the UK intelligence agencies.
“The inevitable outcome of this freeze is that MI5 will lose its pipeline of talent and a pool of future experienced officers.”
GCHQ was already facing recruitment and retention challenges before the funding cut. Its total headcount shrank to the lowest level in three years, according to data published in 2023 by Parliament’s Intelligence and Security Committee.
Spies quitting while MI5 faces new pressures
Britain’s spy agencies are under increasing pressure to protect national security as the threat from hostile states and home-grown sabotage attacks increases, reaching Cold War-era levels.
The war in Ukraine and conflict in the Middle East has added to their workload. Geopolitical tensions have increased the demand on the UK intelligence community’s need for resources, including staff, to tackle criminal gangs, cyber attacks, and “grey zone” military tactics.
Earlier this year, the Security Minister, Dan Jarvis, said the number of state-threat investigations run by MI5 last year rose by 48 per cent. “That statistic is a stark indication of the increased threat,” he said.
Adapting to new and emerging threats means UK intelligence agencies need to hire specialists, intelligence officers, translators and analysts on demand. But a lack of funding, combined with what insiders called a “bloated” middle management at MI5, is hampering their ability and leading to frustration, according to the intelligence sources.
The i Paper previously revealed that security vetting delays were damaging the ability of intelligence services to recruit staff, resulting in an “over-reliance” on private contractors who have had less rigorous screenings.
Amid the retention issues in MI5, the Government has taken steps to try and attract talent in cyber defence roles across Whitehall, offering a “fast track” career path in the public sector.
Such roles help build capabilities in Government departments, which helps release pressure and reliance on UK intelligence.
The Ministry of Defence currently offers candidates £40,000 as a starting salary for a cybersecurity role in the armed forces, while the Cabinet Office’s Cyber Security Fast Stream allows successful candidates to earn between £45,000 and £55,000 in their first role. An average salary in the UK is around £37,000.
The Government refused to comment on issues of national security.
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