Health and Safety (Fees) Regulations 2012
In the last year over 18,000 improvement and prohibition notices were issued and this was an increase of over 15% from the year before. Due to HSE budget reduction it is likely that the HSE's role will have to be more enforcement led as they have less time to advise and become more centered on their cost recovery.
Currently when a business owner is found in breach of H&S legislation they are served a notice that requires them to improve a situation, however there are no formal costs levied by the HSE. Plans are now being discussed to change this so the business owner will also receive a bill for the time spent by the HSE on the case, known as the Fees for Intervention (FFI) Scheme. The exact fee structure and operating guidelines are still being reviewed since consultation with stakeholders ended in October 2011.
No formal timetable has been issued but it is generally expected that from autumn 2012 the new scheme will operate. The HSE have quoted an hourly rate of £133 for their staff (except for HSE laboratory or specialist staff who will cost more) with an inspection which results in a letter costing £750. Inspections that result in an enforcement notice could cost £1,500 and other investigations ranging from £750 to tens of thousands of pounds. Currently the fee structure will only operate by HSE inspectors and not by local authorities although this has not been confirmed.
The ethos of the revised charging system will be to financially penalise those businesses that break the law - if you don't have any breaches you won't be expected to pay; if you do however then you will be financially liable. In introducing a revised charging model it is hoped that this will be a deterrent not to break Health & Safety law but if you do then you will pick up a greater share of the costs. In changing the regulations involved the HSE will, in time, be more self funding and less reliant on the UK tax payer to pay for its work with those guilty of breaking the law paying a higher charge than those who don't.
Whilst the scheme has not formally started it signals a change in the way the HSE operate and will make it a leaner more effective organisation but does it mean that business owners will bear the brunt of the new scheme? Essentially yes it does and should you be concerned? Again the answer is yes, but only if you are breaking the law. If you believe you are doing everything you can and are able to demonstrate this, then you should have nothing to worry about. If, on the other hand, you are not complying with the law then you should have some concerns.
HSE inspectors will not routinely drop in so unless they have a cause for concern you are likely to be left alone. If you do find yourself at the attention of an inspector, you could face a stricter interpretation of the law than previously, cynically you could say with the express intention of trying to find issues to which they can charge you for. Again, if you don't have any issues the inspector cannot charge you so overall it is better to concentrate on keeping your employees and customers safe as it will be more cost effective than the alternative.
About the Author
Nigel J Welford is a qualified Health & Safety professional and believes in making health and safety as simple as possible whilst still being effective and meeting all the regulations. For his free report "The Secret To How Health & Safety Can Improve Your Business And Profits: 7 Everyday Pitfalls To Avoid" from http://bit.ly/TI68sD
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