Local authorities and police forces have come out on top of the 2008 Workplace Equality Index, a list of the UK’s most gay-friendly employers, compiled by gay rights campaigner Stonewall.

Local authorities were most represented in the list, with 21 entries, followed by police forces with 17.

Top of the list was crime reduction body Nacro, which became the first charity to be named the most gay-friendly employer since the index started four years ago.

Paul Cavadino, chief executive of Nacro, says: "We have a clear and strong policy of equality for gay staff. If people feel comfortable about being ‘out’ and being themselves at work, it means they work better."

In the top 10 were Greater London Authority, Hampshire Constabulary, Staffordshire Police, IBM, Lloyds TSB, Manchester City Council, Transport for London, Brighton and Hove City Council and PricewaterhouseCoopers.

The Index ranks the top 100 gay-friendly employers on their policy and practice relating to lesbian, gay and bisexual (LGB) staff.