The head of the prison and probation service has announced that he will retire later this year.

Phil Wheatley, who started his career as a prison officer at HM Borstal Hatfield in the late 1960s, has led the Prison Service since 2003 and became head of the troubled National Offender Management Service (NOMS) at the beginning of 2008. During that time he implemented major financial constraints in the service.

In 2008, after speaking at the annual conference of the Prison Officers' Association about how he had to find savings of £100m, the union issued a vote of no confidence in him and his management team.

However, Wheatley has also proved popular with staff for his actions in other areas. This year the Public and Commercial Services Union nominated him for a diversity award, which he subsequently won, in recognition of his stance in combating racism by upholding a Prison Service ban on the employment of members of racist organisations such as the British National Party.

Speaking after the announcement, justice minister Jack Straw said the 62-year-old former prison governor was "an extraordinarily dedicated individual" with "a record of public service that is second to none".