FFI Means Lawbreaking Firms Will Face £124 Per Hour HSE Charges

As previously reported on 1st October by Unionsafety (see Outrage From Employers Over HSE Charges Begin To Emerge), the Health and Safety Executive’s scheme called Fee For Intervention; is now up and running.

Whilst the full details of how the scheme works may be considered to be only an issue for employers, it is nevertheless important that Union Safety Reps are fully aware of the details of the scheme along with the advice given to employers by the HSE regarding the effects on them, but also the guidance given to HSE inspectors who will be utilising the scheme.

To this end, Dave Joyce from the CWU’s Health & Safety department has issued a full and comprehensive letter to all CWU branches explaining how the HSE are using the scheme and how it will affect the H&S culture of the UK.

Many commentators believe that FFI is just the first step towards the full introduction of the US H&S culture into the UK, whilst others believe that the principle of the employer paying for breaking H&S legislation is a good deterrent.

However, it must be remembered that the Government aim is to minimise compensation for deaths and injuries at work caused by bad employers, whilst at the same time decimating legislation designed to protect people at work.

In his LTB788/12, issued today (17th October) Dave explains the background to the FFI scheme:

‘Despite objections from many Industry sectors, Employers and Employers bodies such as CBI, IoD, EEF, UK Contractors Group and others including Trade Bodies, the Health and Safety Executive (HSE) "Fee for Intervention' ('FFI') scheme came into force this month. The Health and Safety Executive ('HSE') will now be able to recover, via a process known as 'Fee for Intervention' ('FFI'), the cost of regulation and enforcement from businesses and organisations which contravene health and safety laws.

In a major shake-up of how health and safety inspections are funded in this country it will see charges introduced for inspections and accident investigations where a ‘material breach’ is found. The 'FFI' scheme has the support of the TUC, CWU and all Trade Unions including the HSE workforce's Unions as the revenue raised goes back to the HSE and not to the Treasury and will counteract some of the impact of Government's 35% budget cuts which would have resulted in compulsory redundancies at the HSE and further cuts in an already overstretched and under-resourced organisation.

HSE's Fee for Intervention ('FFI') Scheme extends the regulator's cost recovery powers. Its potential consequences are perhaps wider than anticipated and should certainly receive due consideration from employers and businesses likely to be affected.

The Scheme shifts the financial burden of investigating material breaches of health and safety law from the tax payer on to the errant duty holder.

The HSE has produced guidance on FFI, which was brought in through the Health and Safety (Fees) Regulations 2012.

Under FFI, the HSE will only recover the costs of its regulatory work from duty holders considered by the HSE to be in material breach of health and safety law. The HSE will not seek recover its costs under FFI in relation to any prosecution costs in England and Wales after information is laid at a Magistrates’ Court (in the event of a formal prosecution) as any subsequent HSE prosecution costs will be recovered in the normal way if the prosecution succeeds and prosecution Costs are awarded by the Court.’

The LTB then goes on to explain the details of the scheme and explains what a ‘material breach’ is:

‘A 'material breach' occurs where, in the opinion of the HSE inspector, there is or has been a breach of health and safety law, and in those circumstances, the HSE must first issue notice in writing of that opinion to the duty holder. The means of notification will include, but is not limited to improvement or prohibition notices, clearly stating which contraventions are considered to be material breaches.

The FFI covers the HSE’s reasonable costs during its regulatory work in relation to a material breach and includes work undertaken in identifying that breach up until their intervention is concluded or a prosecution commenced. The fee rate is intended to be subject to review but is currently set at £124 per hour (except where third party experts/HSE laboratories are involved where the actual cost of work will be recovered).

Invoices will be sent to duty holders every two months, payable within 30 days, and any debts to the HSE may be recovered through the Civil Court. No VAT will be charged on the invoices.

The introduction of FFI means that companies and organisations will need to consider carefully the potential impact of FFI and thereby establish improved dialogue with the HSE with the aim of satisfying legal compliance and duty requirements.’

The full LTB (including attachments) can be downloaded here

The individual documents attached to the LTB,  HSE guidance to inspectors, FAQ sheets, and HSE employers guidance can be downloaded separately from the E-Library Database. Simply Input the search word ‘Fees’.

See also: Outrage From Employers Over HSE Charges Begin To Emerge

Source: CWU

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