The Health and Safety Executive has revealed that, as of Saturday 6 April 2019, it is increasing the amount it charges under the Fee for Intervention (FFI) programme by 19.4%.
The new hourly fee of £154 – up from £129 – will be applied from 6 April, which marks the beginning of the new financial year.
The Fee for Intervention scheme was introduced in October 2012 and designed to shift some of the costs of regulating workplace health and safety from the taxpayer to those responsible for breaches.
Under the scheme, those found to be in ‘material breach’ of health and safety laws will be served with a ‘Notice of Contravention’ and thereafter be liable for payment of HSE's related costs, including those incurred as a result of inspection, investigation and taking enforcement action. The charges are also meant to cover the administration costs of invoicing businesses, travel, training and paying staff, telecoms and even IT.
Businesses are charged by the hour from the second a breach is found. The total charge depends on how long it takes HSE to identify and conclude its regulatory intervention. The increase in the recovery rate, alongside increasing penalties under the Sentencing Guideline, means that organisations really will have to priortise health and safety compliance, or else face significant financial repercussions.
A material breach is a contravention of health and safety law an HSE inspector finds serious enough to formally write to your business about, demanding action be taken. If an inspector believes something presents a considerable risk, a material breach will be declared.
FFI applies to businesses whose enforcing authority is the Health and Safety Executive (HSE). This will include employers, the self-employed, public and limited companies, partnerships and Crown and public bodies.
In recent years, the amounts charged to businesses through FFI have hit record highs. Those in manufacturing and construction sectors, which are typically high risk and see greatest levels of enforcement activity, are undoubtedly set to be hit hardest by the latest rise.
The best way for businesses to avoid charges is to comply with health and safety law, but we would suggest to those businesses who are considering paying an HSE invoice to state that the payment should be regarded as ‘without prejudice’ and paid for administrative purposes only, to ensure it is not used against them at a later date. Businesses may also wish to consider querying FFI invoices where the sum claimed appears excessive.
For further information, please contact Kathryn Turner & Heather Vyse.
Kathryn Turner
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