An All-Party Parliamentary Group (APPG) on whistleblowing was launched in July 2018 with the aim to provide stronger protection for whistleblowers. Their work led to the Office of the Whistleblower Bill which is currently progressing through Parliament – its four main aims are to establish an independent Office of the Whistleblower (OWB) to protect whistleblowers and whistleblowing; to make provision for the OWB to set, monitor and enforce standards for the management of whistleblowing cases; to provide disclosure and advice services and to direct whistleblowing investigations; and to order redress of detriment suffered by whistleblowers.
The need for reform has been obvious for years. Not a week goes by when whistleblowing is not making headlines exposing tragedy and scandal. For those who dare to blow the whistle there can follow a loss of livelihood, reputational damage, poor mental health, and targeted attacks as whistleblowers. Research by the APPG showed that 77.8% of respondents to their survey declared that the organisation retaliated against them for blowing the whistle.
Yet law enforcement continues to rely on whistleblowers to do the right thing and bring serious criminality to light. Nick Ephgrave, Director of the Serious Fraud Office, is vocal about the need to financially incentivise whistleblowers and cites the US as great example of where monetary rewards for those who speak out are working in the fight against economic crime. The growing number of “failure to prevent” crimes which companies can commit (there will be three by the end of this year — failure to prevent bribery, failure to prevent tax evasion under the Criminal Finances Act 2017 and shortly failure to prevent fraud under the Economic Crime and Corporate Transparency Act 2023) will make whistleblowing even more relevant in the fight against corporate crime. The Serious Fraud Office have often claimed that whistleblowers can be a game changer in an investigation and prosecution where complex financial structures are difficult to unpick without the assistance of those who understand the organisation and how a crime has been hidden. Whistleblowers who can bring to life a case in front of a jury are invaluable to prosecution lawyers.
The current government are encouraging His Majesty’s Revenue and Customs (HMRC) to compensate whistleblowers. As part of her spring statement, Rachel Reeves spoke of an incentive scheme for whistleblowers “rewarding informants with compensation linked to a percentage of any tax taken as a result of their action”. Details of the scheme are not yet available beyond that it will be introduced at some point this year. HMRC already have a whistleblower rewards scheme, but it is discretionary and the limited information available about the scheme suggests rewards are in small amounts.
The Financial Conduct Authority does not offer financial rewards for whistleblowers but does have a dedicated hotline for whistleblowing. Over the last five years it has received over a thousand reports per year.
Whilst UK law enforcement all seem to recognise the importance of the role of whistleblowers the treatment of whistleblowers remains shockingly poor. There still seems to be a disconnect between what is needed and how the law is slowly looking to change.
Whilst the Bill is welcomed, it does not go far enough or fast enough and will not remedy the numerous life changing outcomes that all too often flow from making a protected disclosure. The Bill is only going to reach its second reading in Spring 2026, so it may be many months before it becomes law. It will then take time to set up and staff an OWB.
The obvious missing element from the Bill is a financial incentive scheme which evidence from other jurisdictions shows increases the effectiveness of economic crime investigations and is being called for by law enforcement.
The Bill widens the number of entities that can receive a whistleblowing report but does not offer guidance on which is the best route for a whistleblower to follow. It is not clear how the OWB will select which cases it takes on versus those it passes to the under resourced police or over worked regulatory bodies.
The Bill introduces a new criminal offence for people causing detriment to whistleblowers with a proposed maximum sentence of a fine or 18 months’ imprisonment. For whistleblowers who have lost everything the punishment is insufficient.
The Bill is a step in the right direction but will be little comfort to those who risk everything to the right thing.
Companies of all sizes should be updating their whistleblowing reporting mechanisms now. Ensuring staff are trained and managers know how to go about investigating and following up on whistleblower complaints. Whistleblowing needs a robust response and often involves criminal law, employment rights, and areas as diverse as health and safety to data breaches. Whistleblowing really is becoming a topic that everyone needs to know about.
Francesca Titus is a white collar crime litigation barrister and a partner in the London office of international law firm, McGuireWoods. She can be reached at ftitus@mcguirewoods.com
