HSE - Fee for Intervention, 01 October 2012

The Fee for Intervention (FFI) scheme is now in full operation, and has been since it was introduced on the 1st October 2012. The HSE now levy charges against companies if they visit them and if that visit results in some form of enforcement action. This is not something that the HSE have discretion about, it is now mandatory.  How much money will the HSE raise and where will this money go are questions that are addressed in this short blog article. We also consider simple steps that organisations can take to stay on the right side of the law and avoid these charges, as well as avoiding prosecution.

 
How much may these charges be?
The cost recovery aspect for Fee for Intervention is set at £124/hour for 2012. The actual costs that will recovered by the HSE (under the Health and Safety (Fees) Regulations 2012 force) will be dependent on the complexity of the investigation that is required to follow all reasonable lines of enquiry, but some guideline figures are:

• Inspection with no action taken - No costs will be recovered
• Inspection which results in a letter - Approximately £750
• Inspection which results in Enforcement Notice - Approximately £1500
• Investigations carried out by the HSE - Ranging from approximately £750 through to several thousands of pounds to, in extreme cases, tens of thousands of pounds

Looking for some simple steps to avoid such charges?
The obvious answer is to do the common-sense things and ensure that you are (and remain) compliant with the relevant Health and Safety legislation and this will help you to avoid attracting the unwanted attention of the HSE:

• Keep your health and safety policy and associated procedures up to date.
• Keep your risk assessments reviewed and up to date.
• Ensure that you have adequate control over your contractors.
• Take action to prevent situations developing that may attract the interest of the HSE.
• Ensure that you keep suitable records.
• Keep your employee training records up to date.
• Keep your policies and procedures up to date.
• Consider taking professional Health and Safety advice.

So, who gets this money?
It now appears that the HSE won’t be keeping the full amount recovered under the scheme, the top layer is being skimmed off by the treasury.

The Health & Safety Executive will keep £10 million of the first six months’ revenue, rising to 17 of the projected £37 million recovery in 2013/14 (the scheme’s first full year of operation), and £23 million of the projected £39 million in 2014/15.

Part of the HSE’s original justification for FFI, which will enable it to recover the cost of inspectors’ time wherever they find a “material breach” of Health & Safety law justifying a letter or enforcement notice, was that it would support the executive at a time of budget cuts. The government’s 35% cut in the HSE’s funding will leave the regulator around £80 million a year worse off from 2014–15.

During the consultation period last autumn, the HSE advised that FFI, the introduction of which was delayed from April, could bring as much as £43.6 million a year from non-compliant businesses and operators of onshore boreholes.

It has since revised these estimates to reflect both the change in the hourly FFI rate and revisions to the expected cost recoverable activity.

This is good news for businesses as because the HSE will only gain a set amount from the FFI scheme, there will be no incentive to over-enforce to raise additional funds. However, in line with the reduction in the HSEs budget the overall staff numbers are still likely to decrease.

Parting Message
Your actions may protect your employees, but it is your records that will protect your Company and provide you with peace of mind.

Michael Ellerby

Director, LRB Consulting Limited
Tel: 01509 550023 www.Lrbconsulting.co.uk