Shifting the Burden

HSE will recover all of the costs it incurs following action taken helping businesses to comply where they are breaking health and safety law.

Those who comply with the law will not pay a penny as a result of an HSE inspection and there will be no fees in relation to purely technical breaches.

How is HSE planning to share more of its costs with those that create the risks?

HSE is introducing ‘fee for intervention’ for all costs of an inspection or investigation where a business is in material breach of the law.

Why should businesses have to pay for HSE involvement?
It is fair and reasonable that businesses that are found to have broken health and safety laws should pay the costs incurred by HSE in helping them to put matters right rather than the public purse.
‘Fee for intervention’ will also help create a level playing field for business. Employers who cut corners and put the workers and the public at risk should not enjoy a competitive advantage over those who invest in doing the right thing. ‘Fee for intervention’ may act as an incentive to employers who do not meet basic health and safety standards. Similar schemes are already in operation by other regulators in Britain, including the Environment Agency, Natural England and Ofwat (the Water Services Regulation Authority).

What is a ‘material breach’?
HSE is proposing to recover costs from interventions at which a material breach is found. A material breach is where, in the opinion of an HSE inspector, there has been a breach of health and safety law that requires HSE’s intervention in supporting the business in putting matters right.
For example, at its simplest, failure to properly display the health and safety law poster in an otherwise well- run firm would normally be dealt with by verbal advice, and costs would not be recovered. However, inadequate guarding of machinery, which could result in significant injury to employees, would result in costs being recovered.
What is the proposed hourly rate?

The proposed current estimate for ’fee for intervention’ is £133 per hour. If non-HSE specialist support is required to assist with HSE’s activity, the dutyholder would pay the costs of specialist support. Fees are exempt from VAT.
How will HSE collect the money owed for these fees?
HSE will invoice businesses and expect them to pay within 30 days. To assist them with cash flow and accounting arrangements, it is expected that invoices will be issued on a monthly basis as costs are incurred rather than collating all costs into one invoice issued when all work has been completed. If they do not pay, normal credit control action will then be taken, ie a series of reminders, a final reminder and then recovery through the courts.

When will these measures come into force?
The intention is ‘fee for intervention’ to be introduced from as early as April 2012.

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All reputable employers recognise the benefits of providing healthy and safe working conditions for their staff. Sensible health and safety at work helps to maintain a productive workforce and contributes to economic prosperity and growth.
But health and safety legislation is complex and employers – particularly those in small and medium businesses – are often unclear about what they need to do to meet their legal obligations. While some larger employers have in-house health and safety advisers, and there is a lot of helpful advice and guidance freely available from the Health and Safety Executive (HSE), many employers turn to health and safety consultants for professional help.
Unfortunately, the standards of consultation currently available are variable. There are no minimum standards for health and safety consultants and no way for employers to ensure that the advice they are being given is accurate and proportionate to the needs of their business.
The Government will clamp down on the rogue health and safety advisers who cost industry so much money by giving them advice which bears little relation to the actual requirements of legislation. To achieve this the Government have launched an Occupational Safety and Health Consultants Register (OSHCR) for those health and safety practitioners who are properly accredited to one of the professional bodies in the industry.

Applicants must be a member of a UK health and safety professional body and have a degree level qualification, a minimum of two years experience and engagement with a continued professional development scheme. This is usually at Chartered, Fellow or Registered Member status.

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