The Government is consulting on changes to whistleblowing protections, employer duties and financial rewards for reporting economic crime

Background

The Government has launched a consultation on reforming the existing whistleblowing framework. It runs from 12 October 2026 to 8 January 2027, and a Government response is expected in 2027.

The existing framework was introduced by the Public Interest Disclosure Act 1998. It protects workers who make qualifying disclosures in the public interest from detriment and, for employees, from dismissal. The consultation also covers a proposed reward scheme for people who report economic crime to the Serious Fraud Office (SFO).

What is proposed?

The key proposals are:

1. Whistleblowing procedures: The Government is considering revised non-statutory guidance or a statutory duty requiring employers to have effective procedures, explain them to workers and follow up disclosures. Employers would take reasonable, proportionate steps to assess concerns; they would not have to formally investigate every disclosure. A duty could cover private-sector employers with 50 or more employees and all public-sector employers. Exemptions, phased implementation and civil penalties are also being considered.

2. Who and what is protected: The consultation asks whether protection should extend to groups such as some self-employed individuals, charity trustees and volunteers. The Government is also seeking views on how the public interest test works, whether better guidance is needed, and whether existing categories of wrongdoing cover emerging risks, including AI, misuse of public funds and abuse of authority.

3. Changes to reporting routes: The Government is considering removing the requirement for workers reporting to prescribed persons, such as regulators, to reasonably believe the information is substantially true. It is also exploring additional external routes, including through trade union officials.

4. Extended interim relief deadline: The current seven-day deadline for employees to apply for interim relief following a whistleblowing dismissal could be extended to 14 days.

5. SFO financial rewards: The SFO proposes rewards for significant, original information leading to a successful enforcement outcome against a company. Rewards would come from a proportion of the company’s fine or penalty and be paid after the case and appeal process conclude. Eligibility would be separate from the ERA 1996 test, so individuals need not be workers. The consultation also asks about offences for knowingly making false reports under the scheme and harassing or intimidating people who report to the SFO under it.
   

Next steps

The consultation closes on 8 January 2027. We will continue to report on developments.

For more information or advice, please get in touch with Elizabeth McTeigue in our Employment team.