In short
In England and Wales, courts follow the Sentencing Council's guideline for health and safety offences, in force since 1 February 2016. The court decides how far the business fell short and how much risk of harm it created, then uses its turnover to find a starting point. There is no upper limit on fines, and individuals can be sent to prison for up to two years.
Example
pricing the job properly
Sam runs a four-person roofing firm. On a tender for a school roof, the cheapest price meant leaving out edge protection and relying on harnesses alone. Sam knew that courts normally add money saved by cutting corners to a fine. He priced in scaffold edge protection and wrote a clear method statement. He lost that tender. The next client chose his firm because the plan showed exactly how the roof would be done safely.
An illustrative example, not a real case.
How the court works out the fine
- 01
Culpability
How far the business fell short of the standard: very high, high, medium or low.
- 02
Harm
How serious the harm risked was and how likely it was. Nobody has to be hurt: the offence is creating the risk.
- 03
Turnover
The organisation's turnover sets the starting point and range, from micro to large.
- 04
Adjust
The court weighs aggravating and mitigating factors, checks the fine against the firm's overall means, then reduces it for a guilty plea.
Starting points for smaller firms
Low culpability, harm category 4
- Micro (turnover up to £2 million)
- £200
- Small (£2 million to £10 million)
- £700
Medium culpability, harm category 3
- Micro (turnover up to £2 million)
- £14,000
- Small (£2 million to £10 million)
- £24,000
High culpability, harm category 2
- Micro (turnover up to £2 million)
- £54,000
- Small (£2 million to £10 million)
- £100,000
Very high culpability, harm category 1
- Micro (turnover up to £2 million)
- £250,000
- Small (£2 million to £10 million)
- £450,000
Note: Harm category 1 means a high likelihood of death, or of injury leaving someone dependent on care for life. These are starting points only: full ranges run from £50 to £450,000 for micro organisations and £100 to £1.6 million for small ones.
What moves a fine up or down
- Up: cutting costs at the expense of safety, previous convictions, a poor safety record, falsified documents or obstructing the investigation.
- Up: exposing a number of people to the risk, or being a significant cause of actual harm.
- Down: a good record, effective procedures, prompt steps to put things right, self-reporting and cooperation.
- Down: a guilty plea, which normally earns a reduction of one third at the first stage of proceedings, and less later.
Prison for individuals
Since the Health and Safety (Offences) Act 2008, individuals convicted of most health and safety offences can be sent to prison for up to two years. That includes directors, managers and employees. In the most serious cases, the guideline starting point is 18 months' custody.
Why prevention costs a small firm less
- The guideline says it should not be cheaper to offend than to take the right precautions, so money saved is normally added to the fine.
- Courts can also order you to pay the prosecution's costs on top of the fine.
- A fine can close a small firm. The guideline says that may be an acceptable result in some bad cases.
What the courts have said
R v F Howe and Son (Engineers) Ltd [1999] 2 All ER 249
The Court of Appeal said a fine needs to be large enough to bring the safety message home to managers and shareholders, while reflecting what the business can pay. Deliberately running a risk to save money makes an offence more serious.
R v Tata Steel UK Ltd [2017] EWCA Crim 704
Two workers lost parts of fingers in machinery; the judge said an interlock on a gate would have prevented the second injury. The Court of Appeal cut the total fine from £1,985,000 to £1,500,000, finding harm less likely than the judge had, because the machine had run about 150,000 working hours without incident.
Common questions
What is the maximum fine for a health and safety offence?
In England and Wales there is no upper limit in either the magistrates' court or the Crown Court. For organisations, the guideline ranges run from £50 to £10 million, and courts can go higher for very large companies.
Does a bigger company get a bigger health and safety fine?
Yes. In England and Wales, the court uses the organisation's annual turnover to find the starting point: micro (up to £2 million), small (£2 million to £10 million), medium (£10 million to £50 million) or large (£50 million and over). It then checks the fine against the firm's profit and overall means, and can move outside the range.
Can a health and safety fine put a company out of business?
Yes, in serious cases. The guideline for England and Wales says it is relevant whether a fine would put the organisation out of business, but in some bad cases this may be an acceptable consequence. The court can allow time to pay, or order payment in instalments, if necessary over a number of years.
How much is a fine reduced for a guilty plea?
By up to one third, if you plead guilty at the first stage of proceedings. After that the maximum reduction is one quarter, falling to one tenth by the first day of trial (Sentencing Council guilty plea guideline, England and Wales). The earlier you indicate a guilty plea, the bigger the reduction.
Can a court make you pay the prosecution's costs as well as a fine?
Yes. In England and Wales, a court that convicts you can order you to pay the prosecution's costs, in an amount it considers just and reasonable (section 18 of the Prosecution of Offences Act 1985). Where the offence caused injury, loss or damage, the court must also consider ordering you to pay compensation.
Can you go to prison for breaking health and safety law?
Yes. Since the Health and Safety (Offences) Act 2008, individuals convicted of most health and safety offences can be sent to prison for up to two years (Schedule 3A to the Health and Safety at Work etc. Act 1974). This includes directors, managers and employees. In England and Wales, the guideline starting point for the most serious cases is 18 months' custody.
How are health and safety fines for individuals worked out?
In England and Wales, the court uses the same culpability and harm steps, then sets the fine as a share of the person's relevant weekly income. The bands run from Band A, 50% of weekly income, to Band F, 600%. The most serious cases start with a prison sentence instead (Sentencing Council guideline for individuals).
Does someone have to be hurt before a business is fined?
No. The offence is failing to manage a risk. If the breach was a significant cause of actual harm, the court can increase the fine.
How NXT-HSE can help
NXT-HSE can audit your sites and systems so you can find and fix gaps early, and investigate accidents and near misses to find the causes. Your legal duties stay with your business.
Sources
- Sentencing Council: health and safety offences by organisations
- Sentencing Council: health and safety offences by individuals
- Sentencing Council: reduction in sentence for a guilty plea
- Health and Safety at Work etc. Act 1974, Schedule 3A: penalties
- R v Tata Steel UK Ltd [2017] EWCA Crim 704 (National Archives)
- Prosecution of Offences Act 1985, section 18: costs
Sources checked 28 September 2026 against current Health and Safety Executive guidance and legislation. This guide is general information, not legal advice; your legal duties stay with your business.
