SHE Matters: The Department for Environment, Food and Rural Affairs review of the Office for Environmental Protection

The new Office for Environmental Protection (OEP) was legally created in November 2021, under the Environment Act 2021, sponsored by the Department for Environment, Food and Rural Affairs (Defra). The OEP is an independent non-departmental public body whose primary purpose is to protect and improve the environment by holding Government and other public authorities to account. Since it became fully operational in January this year, the watchdog has begun to advise Government on potential breaches to environmental law and to investigate such occurrences.

From May 2022 to July 2022, Defra initiated a review of the OEP as part of the Government’s Public Bodies Review Programme. The reason for the review was to check that the OEP is both well governed and properly accountable for what it does as well as being effective, efficient and aligned to the Government priorities.

The outcome of the Stage 1 review was that the OEP is in good health and is on track to meet the minimum requirements for an arm’s length body. The review did not identify the need for a further, more comprehensive review to be carried out.

As part of the review process, recommendations have been made which focus on the enhancement of administration and governance processes. There are 12 recommendations in total which can be summarised as falling under matters relating to efficacy, efficiency, governance and accountability.

In relation to efficacy it was identified that: a memorandum of understanding should be developed in collaboration with the relevant bodies in Scotland and Wales by March 2023; Defra agreed performance metrics should be in place by April 2023; internal guidance ensuring project compliance with HM Treasury’s Green Book and associated business case guidance should be in place by January 2023; and Defra should review the OEP’s budget and headcount ahead of the next three financial years to monitor the deliverance of the OEP’s statutory objectives.

The recommendations relating to efficiency require the development of a benchmarking strategy so data can be used to compare costs and to improve efficiency by April 2023, together with the requirement to develop a digital, data and technology strategy by December 2022.

The governance related recommendations require the OEP chair to: consider the skills and diversity needs of the board to provide for a clear strategy for board appointments by January 2023; to ensure appropriate training for board members on financial management and reporting requirements is carried out; publish its board’s declarations of interests; and to work with Defra in relation to post-employment rules and procedures for board members.

Under the topic of accountability, the recommendations require Defra and the OEP to agree the Common Framework document by August 2022 and to take into account the guidance on risk management provided by the Government, in order to agree a common approach to risk by April 2023.