The Rising Cost of Non-Compliance

In recent years, health and safety has moved higher up the agenda for businesses across the UK. It is no longer just a requirement to protect staff, contractors, and the public, it now comes with serious financial consequences of failing to comply.

The Health and Safety Executive (HSE) continues to issue record-breaking fines, and the new sentencing guidelines introduced in June 2025 have raised the stakes even further, particularly for large organisations.

The Sentencing Council’s updated guidance has made it clear that very large organisations, those with turnovers exceeding £50 million, can expect significantly higher penalties than ever before.

Multi-million-pound fines are no longer exceptional, they have become a real possibility. Even medium and smaller companies are not exempt. Fines are dependent on turnover, making compliance a priority for businesses of all sizes.

Recent high-profile prosecutions provide stark illustrations of these risks. Major construction contractors have faced fines exceeding £800,000 after incidents involving apprentices and falls from height. Manufacturing firms have been penalised with multi-million-pound fines following machinery accidents, and oil and gas operators have faced substantial financial penalties after serious breaches on offshore platforms. In each case, the HSE emphasised that the risks were known and could have been prevented with the right systems, training, and oversight.

The consequences of non-compliance extend well beyond the headline figure of the fine. Businesses face reputational damage, which can make clients hesitant to award contracts or enter partnerships. Operational disruption is another real issue, as investigations and legal proceedings can halt work for months. Insurance premiums frequently rise following a conviction, while employees may lose confidence in their employer, affecting morale, engagement, and retention. When considered together, the full cost of non-compliance often dwarfs the fine itself.

Avoiding these outcomes requires a proactive approach. Comprehensive, up-to-date risk assessments, effective training programmes, and robust leadership are all critical. Regular audits help identify gaps before the HSE does, and maintaining clear records demonstrates due diligence and compliance. Leadership plays a crucial role, as a culture that prioritises safety is most effective when modelled from the top down.

Questions often arise about what this means in practice. Many business leaders ask how large fines can be, whether directors can be held personally liable, and which industries are most at risk.

Fines can range from six figures to several million pounds. In severe cases, directors and managers can face personal prosecution or even imprisonment. While construction, manufacturing, logistics, and energy remain highly scrutinised, all industries carry responsibilities under UK law.

Ultimately, health and safety is no longer just a compliance issue, it is a core business risk that can impact finances, reputation, and people. With sentencing guidelines tougher than ever and regulators increasingly active, the cost of ignoring safety cannot be underestimated.

At Ranmoor Health and Safety, we help organisations stay ahead of these challenges. Our audits, training, and compliance support are designed to protect both your people and your business. Contact us today to discuss how we can help you avoid costly mistakes and build a culture of safety that endures.