Outcome recommendations from the OEP review 2022 to 2023
Published 11 August 2022
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The Department for Environment, Food and Rural Affairs (Defra) completed a review of the newly established Office for Environmental Protection (OEP). The review was part of the government’s Public Bodies Review Programme. It was started in May 2022 and concluded in July 2022.
1. Background of the OEP
The OEP was established under the Environment Act 2021 to help protect and improve the environment by holding government and other public authorities to account.
It became fully operational in January 2022, after 6 months in shadow form. It has begun to advise government on and investigate potential breaches to environmental law.
2. Purpose of the review
The review aimed to ensure that the OEP – as a new public body – is:
- on track to be effective, efficient and aligned to the government’s priorities
- well governed and properly accountable for what it does
The review team was also asked to look at the long-term resource requirements of the OEP.
3. Recommendations and conclusions
A stage 1 review concluded that the OEP is in good health. It has plans and processes in place to meet minimum requirements for an arm’s length body (ALB).
A total of 12 recommendations were identified, to improve administration and governance processes. The recommendations aim to ensure that the OEP and Defra continue to meet minimum requirements as the OEP develops and the relationship with Defra matures.
This stage 1 review did not indicate the need for a full, independent review of the OEP at this early stage.
3.1 Efficacy
1. The OEP should develop and agree a memorandum of understanding (MoU) with its equivalent bodies in Scotland and Wales by March 2023. This should cover how they will work together to meet their objectives.
2. The OEP should agree its performance metrics with Defra. These should be in place by April 2023.
3. The OEP should develop internal guidance to ensure that projects and programmes are developed in line with HM Treasury’s Green Book and associated business case guidance. This guidance should be created by January 2023.
4. Defra will review the OEP’s budget and permitted headcount ahead of the next financial year, as further evidence becomes available. It will review these again in 2023 to 2024. This will ensure the OEP can deliver its statutory objectives as intended under the Environment Act.
3.2 Efficiency
5. The OEP should develop its approach to benchmarking to compare its costs by April 2023. It should then use this data to improve efficiency and effectiveness.
6. The OEP should develop a digital, data and technology strategy that improves its efficiency by December 2022.
3.3 Governance
7. The OEP chair should work with its departmental senior sponsor to consider the current and future skills and diversity needs of the board. This will ensure there is a clear strategy and pipeline around appointments. This work should commence no later than January 2023.
8. The OEP should ensure that all board members have appropriate training on financial management and reporting requirements. Board members should also have access to wider development opportunities.
9. The OEP should publish its board’s declarations of interests register no later than September 2022.
10. The OEP should work with Defra to develop its post-employment rules and procedures for board members by September 2022. These rules should cover the acceptance of appointments or employments after resignation (business appointment rules) or retirement. These should then be monitored and considered by Defra and the chair of the OEP.
3.4 Accountability
11. Defra and the OEP should agree the Common Framework document by August 2022.
12. Defra and the OEP should complete further work to agree its approach to risk appetite, in line with the government’s Orange Book guidance on risk management, by April 2023.