ENFORCEMENT - 08.11.2012

Where’s the money going?

Money maker. As we stated previously, the HSE’s FFI scheme is now in full operation (yr.11, iss.3, pg.1, see The next step). However, it appears that the HSE might not do as well out of it as its officials had hoped. Gordon MacDonald, the HSE’s programme director, has revealed that the HSE will keep less than half of the projected £37 million of receipts raised during the first full year. The rest will go straight to the Treasury.

The numbers. The HSE will keep £10 million of the first six months of revenue, rising to £17 million of the projected £37 million recovered in 2013/14. This will increase to £23 million of the estimated £39 million in 2014/15. However, although these figures represent a significant income stream for the HSE, it doesn’t match the cuts that have been made to its budget. Estimates suggest that the HSE will still be £80 million a year worse off from 2014/15 than it would have been if previous government funding levels had been maintained.

The impact? This is pretty good news for a number of reasons. Firstly, and most importantly, because the HSE will only gain set amounts from the FFI scheme, there will be no incentive for it to over-enforce to raise funds. Plus, although it’s been suggested that once the HSE starts making money from the FFI scheme, inspector numbers etc. will start to increase, this now looks unlikely. If anything, because of the continued shortfall in funding, staff numbers across the board could be reduced still further.

Tip. Don’t think for one minute that this will change how inspectors act. To prevent fees being challenged on grounds of fairness, inspectors will have to apply them at all times. Apart from addressing any potential breaches before an inspector arrives, the only way to keep the costs down is to deal with the breach and respond to the inspector quickly.

For a previous article, visit http://healthandsafety.indicator.co.uk (HS 11.05.01).