Whistleblowing failures cost taxpayers millions

Failing to act on whistleblower warnings has cost UK taxpayers at least £426 million, according to new research by the whistleblowing charity Protect. The study analysed three major scandals: the Post Office Horizon IT scandal, the Countess of Chester Hospital/Lucy Letby case, and the collapse of construction giant Carillion. Each case revealed significant financial losses due to a lack of accountability and failure to heed whistleblower warnings.

The research estimated the financial impact as follows:

• £178m lost in the Post Office Horizon scandal
• £39m in costs from the Countess of Chester/Lucy Letby scandal
• £209m due to Carillion's collapse

These figures account for public inquiries, police investigations, delays to infrastructure projects, and compensation payments. Protect emphasised that the lost funds could have been used to build 14 new schools or employ 1,440 doctors or 2,580 nurses for five years.

Elizabeth Gardiner, chief executive at Protect, says whistleblowing failures impose significant costs on individuals, employers, and the public: "It is Central Government that is left picking up the pieces of avoidable scandals. Employers are still not listening to whistleblowers or creating cultures where they can speak up safely and effectively."

Joe Powell MP, chair of the APPG on Anti-Corruption & Responsible Tax, expressed concern about the human and financial impact of these scandals: "The impact of these scandals on individual people cannot be overstated, it is shocking and heart-breaking. Without whistleblowers, we would be blind to wrongdoing, yet too often they are ignored. This powerful research shows how essential whistleblowers are and the role they play in preventing financial losses and public harm."

The study, funded by the Joseph Rowntree Charitable Trust, categorised financial losses from whistleblowing failures into three groups:

• Unavoidable costs: Expenses incurred before whistleblowing takes place, regardless of employer response.
• Avoidable costs: Costs arising because whistleblowers were ignored or their concerns dismissed.
• Fallout costs: Expenses linked to public exposure, including inquiries and legal proceedings.

Former Post Office sub-postmaster Mark Baker reflected on the impact of whistleblowing failures: "Beyond the human cost of the Post Office Horizon scandal this research makes it clear that listening to whistleblowers could also have saved the taxpayer millions of pounds. Sub-postmasters, like me, knew there were problems. We challenged the system and were dismissed. It’s taken years to get our voices heard and the truth exposed."

Beyond the three cases studied, Protect noted that whistleblower warnings were ignored in other high-profile disasters, such as the Infected Blood scandal and the Grenfell Tower fire.

Gardiner urged the government to take action: "Whistleblowers are a vital early warning system, but 40 per cent of the 3,000 callers to Protect’s legal advice line in 2024 said their concerns were ignored. If the Government wants to avoid unnecessary costs from whistleblowing failures in the future, action is needed to change employer behaviour."

Protect is calling for key reforms to improve whistleblowing protections in the UK, including:

• A legal duty for employers to investigate whistleblower concerns.
• Expanding whistleblower protection to include sub-postmasters and other vulnerable workers.
• Elevating whistleblowing policy to the Cabinet Office to ensure greater accountability across all sectors.

The research underscores the economic and moral necessity of listening to whistleblowers. Without urgent reforms, the cost of future scandals—both financial and human—will continue to rise.