Government consults on reform to whistleblowing regime

Significant reforms of UK employment laws continue apace. On 12 October 2026, the Government launched a 12-week consultation on reforming the whistleblowing regime in Great Britain. The proposals are wide-ranging and include the introduction of mandatory whistleblowing policies and procedures, a broader route to a remedy for whistleblowers known as ‘interim relief’ and offering financial rewards in some economic crime cases. Even if only some of these options are taken forward, UK employers are likely to need to revisit wholesale their whistleblowing policies, procedures and wider speak-up arrangements.

In this legal update we discuss the key proposals and what the changes may mean for employers.

The current system

In the UK, the Public Interest Disclosure Act 1998 (PIDA) provides a framework to protect workers who blow the whistle. Where a worker attracts protection under PIDA, they have the right not to be subjected to detriment or be dismissed for having disclosed wrongdoing in the workplace.

PIDA established a clear framework in 1999 and was initially ahead of its time. The UK’s financial regulators and the Corporate Governance Code latterly introduced more whistleblowing regulation for businesses operating in financial services or where publicly listed. But for other businesses, the UK’s whistleblowing regime now lags behind those of other countries, especially since the introduction of the EU’s Whistleblowing Directive, which was not implemented in the UK post-Brexit. The current consultation therefore proposes a range of reforms.

Policies and procedures

PIDA does not stipulate that employers must have a whistleblowing policy. Current Government guidance encourages employers to have procedures, but these recommendations are not legal requirements.

The consultation proposes two options: revised guidance to help employers handle disclosures, or a new statutory duty requiring employers to have appropriate and effective procedures for dealing with whistleblowing disclosures, policies explaining these procedures to workers, and an obligation to follow up on disclosures. The consultation looks to the current Irish regime, as well as the Financial Conduct Authority’s (FCA) model under its Handbook (SYSC 18), for potential inspiration.

This reform would be the biggest practical change for employers and is proposed to apply to all public sector employers (regardless of size) and private sector employers (including charities and not-for-profit organisations) with 50 or more employees, with a possible exemption for organisations already subject to equivalent requirements, such as certain in-scope financial services organisations. The Government proposes civil penalties for non-compliance and seeks views on whether the duty should be phased in.

Interim relief

Interim relief is an urgent and potent tribunal remedy that can be sought by an employee if they believe they have been automatically unfairly dismissed for certain reasons, including because they have blown the whistle, and they apply to the tribunal within 7 days of their dismissal date. If successful, the employee’s employment (or payment of salary) continues until the final hearing of the dispute, which could be several years away.

The consultation seeks views on extending the application limitation period from 7 to 14 days after dismissal. This is still short, but it gives claimants more time to obtain advice and may increase the number of applications. For employers, interim relief applications already demand rapid evidence gathering, senior management time and legal spend. While we have seen a significant increase in these applications this year, largely because of AI-assisted claims (mentioned in the recent Presidential Guidance Applications for Interim Relief), employee success in our experience remains rare.

SFO financial reward scheme

The UK has historically taken a cautious approach to financial incentives, although limited schemes exist through HMRC and the Competition and Markets Authority. Paying for information would mark a cultural shift from whistleblowing as a public good to whistleblowing as a potentially rewarded act.

The consultation seeks views on a Serious Fraud Office scheme offering financial incentives for information about economic crime, drawing on overseas models. The Government supports the proposal, but there is still plenty to work out in relation to the operation of the scheme, including eligibility, funding, award levels and possible criminal offences. The Government suggests calculating rewards as a percentage of the company’s financial penalty or fine, with payments funded from that penalty. CMS’ corporate crime team will be providing further commentary on this proposed reform.

Scope of protected individuals

Whistleblowing protection already applies more broadly than most employment rights. Protections extend to workers, agency workers, trainees or those undertaking work experience in certain situations and other categories. Certain groups are not covered in the list, including charity trustees, non-executive directors, volunteers, job applicants outside the NHS and certain self-employed individuals, some of whom the Government recognises could be well-placed to identify wrongdoing in the workplace. The consultation therefore asks whether protection should be extended.

The list of wrongdoing

To be protected, a worker must reasonably believe that the information they disclose shows past, ongoing or likely future wrongdoing of a kind listed in legislation. These categories are already broad, with sexual harassment newly introduced in April 2026 (via the Employment Rights Act 2025). 

However, the Government recognises that new risks are emerging, including through the development and use of AI tools, and asks whether the existing categories are sufficient or whether changes to the categories or clearer guidance are needed. It also seeks views on misuse of public funds and abuse of authority. 

Disclosure routes

To be protected when reporting to an employer, a worker must reasonably believe their disclosure relates to specified wrongdoing and is in the public interest. To encourage internal reporting, PIDA imposes stricter conditions on workers who blow the whistle externally.

In the UK, where a disclosure is made to a prescribed person (for example, HMRC or a regulator), the worker will only be protected if the worker meets the higher standard of reasonably believing that the information disclosed and any allegation contained in it are substantially true, and the matter falls within that prescribed person’s remit. 

The consultation asks whether the higher threshold deters reporting and overcomplicates the framework. The question of explicit protection for disclosures to trade union officials, an option raised by stakeholders, is also significant, as it could give workers a more accessible route to raise concerns as well as increasing the importance of the role of unions in handling reports.

The public interest test

To qualify for protection under the whistleblowing regime, a worker must reasonably believe their disclosure is in the ‘public interest’. The term ‘public interest’ remains undefined in legislation and has been criticised for creating uncertainty. Whilst the test has been fleshed out over the years by case law, the Government acknowledges criticism that it remains too vague. The consultation does not propose to remove the test but is considering introducing additional guidance on the application of the test. 

The broader picture for employers

If implemented, the reforms could widen who is protected, what can be reported and the process for making and investigating a disclosure. It is too early to make any substantive changes to policies and procedures; however, especially for international organisations, it may be worth considering how your UK policies currently dovetail with wider European or global processes and procedures. We recommend a watching brief on the final proposals.

Employers wishing to shape the outcome should respond before the consultation closes on 8 January 2027. If you would like to discuss any of the issues raised in this legal update, please speak to your CMS employment team contact.

Article co-authored by Alice Prince-Tappe, Trainee Solicitor at CMS.