INTRODUCTION

As an employer or self-employed person, awareness of the costs of accidents and information about the type/frequency/location etc. of their occurrence can be of considerable value in improving health and safety management in your workplace.

COSTS OF ACCIDENTS

Many employers may not realise the extent of injury and ill-health arising from work activities.

There are an estimated 1.6 million accidents resulting in injury each year and 2.2 million workers suffer ill-health caused or made worse by their work. 30 million working days are lost each year with a cost to industry of some £700 million. Estimates of the overall cost to employers vary from between £4,000 - £9,000 million a year, some 5-10% of gross trading profit. On a national basis (including Social Security and NHS costs) it is estimated that the total cost to society is some £10-£15 billion per year.

A study¥ undertaken by the Health and Safety Executive (HSE) in the early 1990’s shed some light on the practical and financial consequences for businesses of accidents at work - the costs for one company totaled 37% of annualised profits whilst another suffered losses accounting to 5% of running costs. It is worth noting that the businesses suffered no fatalities, prosecutions or significant civil claims in the study period which would have increased these costs still further. The cost of accidents can be sub-divided into insured and uninsured costs. The average costs for the businesses studied are shown in the diagram below.

Average costs for businesses from accidents at work

Successful businesses are essential to both the national and local economy. Small to medium sized firms in particular give employment, develop new ideas and provide essential services on which many larger companies depend. Unfortunately, small firms often tend to have worse accident records than large firms, as a study carried out in the late 1980’s revealed - (see diagram on next page).

¥ Detailed in ‘The Costs of Accidents at Work’ (HS(G) 96)

Where standards are below average this is often due to a lack of knowledge and expertise rather than a flagrant contempt for health and safety, though regrettably, this is sometimes found.

WORKPLACE INJURY

Statistics on workplace injury are derived from two sources. The first of these are injuries reported under the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995 (RIDDOR). The second source of information is the Labour Force Survey (LFS), a systematic random sample survey of around 60,000 private households conducted on a rolling quarterly basis using 5 ‘waves’ each of 12,000

The LFS for 1993-1996 indicates the rate of total workplace injury in GB is approximately 4,530 per 100,000 employees and just under 4,000 per 100,000 self-employed workers.

A comparison of the LFS figures with those injuries reported under RIDDOR indicates that there is significant under reporting of injuries. For businesses in LA-enforced sectors the rate is estimated to vary from 11% to 28% compared with an all- industry average of 41%.

The LFS suggests that reported injuries (under RIDDOR) do not always reflect the risk of injury within various business sectors. Table 1 below shows the risk of injury (relative to the manufacturing industry) based on both LFS and RIDDOR information for a selection of business sectors.

Table 1:Risk of non-fatal injury relative to the manufacturing sector(Based on years 1993/4 -1995/6)

(Source: Government Statistical Service)

ACCIDENT / INJURY RATES

Studies indicate that there may be a difference between MAJOR and TOTAL injury rates in establishments of different sizes. For example, in 1990 HSE estimated that employees in firms of under 50 people were 20% more at risk of ‘major’ injuries than those in firms employing between 100 -1,000 and at least 40% more at risk than those in establishments of more than 1,000. Such major injuries include amputations, serious fractures and other conditions requiring admittance to hospital for more than 24 hours.

Although the relationship between establishment size and major injury is an inverse one (i.e. the smaller the firm, the higher the injury rate) it has been found that other reportable injuries (not being major ones but requiring more than three days off work) were found to increase with size. A recent study (LFS 1994-95) has suggested that the rates of total injuries in workplaces employing 25 or more workers are about 50% higher than those employing fewer than 25 staff.

Studies have also indicated that there is an under-reporting of accidents in smaller firms - only 40% of reportable accidents are actually reported in firms employing more than 25 people and 25% in firms employing less than 25 people.  It may be that greater size facilitates the development of safety management resources with more specialist knowledge, greater confidence and a more developed safety culture. There is also more likely to be a joint framework between employer and employee for consultation on, and management of, health and safety.  In smaller firms there may be greater pressure to return to work earlier.

INJURIES IN THE SERVICE SECTOR

The following information is taken from the Local Authorities Report on Health and Safety in Service Industries 1996 (C120 - HSE) with information derived from the RIDDOR database.

INJURIES TO EMPLOYEES

Note

1. 82% of all major injuries were due to a fracture of some type

2. Injury rates take into account changes in employment and are therefore a better indicator of risk in an industry. They are as follows:-

OVER 3 DAY INJURIES

What injuries in which industries?

All figures are percentages - figures in bold indicate areas of greatest concern from accidents

                                                                    Industry

Where do accidents take place?

                                                                       Industry

Over-3-day injury rates (per 100,000 employees)

INJURIES TO SELF EMPLOYED PEOPLE

All figures are percentages and relate to the period 1986-1995; figures in bold indicate priority areas.

                                              Severity of Injury

CHECKLIST -

ACCIDENTS - COSTS AND STATISTICS

REFERENCES/FURTHER DETAILS

1.Booklet HS(G)96 - The costs of accidents at work (HSE).ISBN 0 7176 1343 7.

2.Local authorities report on health and safety in service industries 1996 (HSE)

3.Booklet HS(G)65 - Successful health and safety management (HSE).ISBN 0 7176 1276 7.

         1-3  Available to view by prior arrangement at your Local Authority Environmental Health Department

4.Leaflet IND(G)132L – Managing Health and Safety- Five steps to successful health and safety management (HSE). www.hse.gov.uk/pubns/indg275.pdf

         Free copy available from your Local Authority Environmental Health Department.