The second Post-Implementation Review of the Control of Asbestos Regulations 2012 has been published.
Based on research supporting the PIR, including evidence from a stakeholder survey, cost benefit analysis and epidemiological data, the PIR concluded that:
- the Regulations are achieving their intended objectives and the objectives remain valid
- intervention by regulation is still required and remains the most effective way to control the risks of exposure to asbestos
- it is not necessary to amend the provisions of CAR 2012 at this time
The cost benefit analysis concludes that the Regulations have a net present value to society of £16.3 billion and the case for maintaining them remains strong. The assessment demonstrates that the benefits of CAR 2012 outweigh the costs and will continue to do so for the foreseeable future, as long as exposures continue to be controlled effectively.
As a result of modelling adjustments and improved assumptions in the 2022 PIR, the estimated social value of CAR 2012 has narrowed modestly since the 2017 PIR. Estimated costs and benefits have increased due to modelling enhancements and improved evidence. Overall, the social value remains beneficial with an estimated value of £16.3 bn.
The updated annual costs for complying with CAR 2012 are estimated to be approximately £741m, with a low estimate of £493m and a high estimate of £1,096m. This results in a present value estimate of costs of £12.4bn between 2016 and 2115, with a low estimate of £8.2bn and a high estimate of £18.3bn. Per annum benefits over the same period vary, but their present value is approximately £28.7bn. Uncertainty surrounding cost estimates has been reduced in the 2022 PIR, which has allowed us to report a detailed cost estimates that were not reported in 2012. The net present value of CAR 2012 has narrowed from approximately £18.6bn in 2017 to £16.3bn in 2022 due to improved estimates that increased costs more than benefits. The low estimate of costs informs a net present societal value of CAR 2012 of £10.4bn, with the high-cost estimate informing a net present value of £20.5bn.
This PIR demonstrates that the impact of CAR 2012 has a large social value and the case for maintaining the regulations remains strong. This cost benefit assessment allows us to conclude that the benefits of CAR 2012 outweigh the costs and will continue to do so for the foreseeable future, so long as exposures continue to be effectively controlled.
Download the full Control of Asbestos Regulations 2012 PIR.
