The rising cost of FFI

The cost of an invoice under the Health and Safety Executive’s (HSE) Fee for Intervention (FFI) scheme has increased by 40 per cent since it was introduced in 2012 – with the average price tag now more than £700.

The latest information shows that in the August 2015 invoice run, which covers notices of contravention issued in April and May this year, the HSE sent out 2,922 invoices for a total sum of £2.01 million, an average of £715.

Every two months the HSE sends out a tranche of invoices to companies which have been issued with a notice of contravention by inspectors who consider them to have been in material breach of the law. Invoices are issued regardless of whether any investigation has been completed, meaning the actual cost of a notice of contravention may be higher.

The manufacturing and construction sectors received the largest total bills, £750,000 and £591,000 respectively, while the service sector was charged £565,600.

On the basis of individual invoices, the extractive industry faces the highest cost per invoice with an average of £972. This is followed by the service industry (£914) and waste management (£618).

Based on the August figures, HSE can expect to generate over £12 million a year from FFI. The impact assessment for the introduction of the Health and Safety (Fees) Regulations, which provides the legal underpinning of the cost recovery scheme, estimated that up to £43.6 million a year in fees could be generated, meaning it’s highly likely that the number of FFI interventions will continue to increase.

We can help companies avoid FFI fees by offering 3rd party independent health and safety audits that enable us to spot concerns before the HSE inspectors do.

To discuss this topic in more detail please call on 01772 736522 or email admin@aegis-services-ltd.co.uk