Estimating the Costs of HAVS to Society

Apart from the obvious cost in claims for compensation with regard to HAVS there will also be the cost to society as a whole.

In recent years there have been several high-profile compensation awards for VWF. In one case an award of £200,000 was made to a tree surgeon who worked for a local authority. In another case, a recent High Court judgment will lead to compensation awards to over 140,000 retired coal miners and their families at a total cost of up to £3 billion.

Recent research suggests that around 2 million people in Britain are exposed to potentially harmful levels of HAV and that around 300,000 people may suffer from moderate to severe finger blanching linked to such exposure. VWF and vibration related carpal tunnel syndrome are both prescribed diseases under the Department for Work and Pensions (DWP) Industrial Injuries Benefit Scheme. Under the Scheme over 3,000 new cases of VWF were assessed by the Department of Social Security (DSS - predecessor to DWP) in each of the years 1995-96 and 1996-97. The number of cases of vibration-related carpal tunnel syndrome assessed for those years was 265 and 297 respectively.

A study carried out by the Medical Research Council (MRC) "Hand-transmitted vibration: Occupational exposures and their health effects in Great Britain” and combines it with HSE's "Self-reported Work related Illness in 1995. Results from a Household Survey". Six firms with fewer than 50 employees were also consulted to assess the impact on small business. Costs and benefits are calculated in present value terms over a ten-year period. The base year for appraisal and price base used is 2001/02. Most of the costs are recurrent, either annually or about every five years (year 0, year 5 and year 9).

MRC estimates that about 4.9 million workers are exposed to HAV in Great Britain. The following table provides an estimate of the number of people exposed between the personal daily vibration exposure (A(8)) break points of 0, 2.5 and 5 m/s2.

Estimating the Costs of HAVS to Society

The Self-reported Work-related Illness (SWI) survey in 1995 gives an estimated 20,400 workers suffering from vibration White Finger (VWF is the most common effect of HAVS). However we believe this to be a very low estimate. The MRC report estimates that the number of people with VWF is about 301,400 which is the estimated number with a condition serious enough to merit DWP compensation. There are many more (possibly hundreds of thousands) with a less severe condition. Based on evidence from the SWI, but related to the figure of 301,400 sufferers, we have made the following assumptions relating to the economic effect per year of workers developing VWF:

Assumptions

• 21.5% take time off, at an average of 25 days each
• no workers leave their job5
• no workers leave the labour force altogether.

‘Costs’ to individuals who experience VWF

Assumptions

• 78.5% of VWF sufferers do not take time off but experience discomfort
• figures based on HSE's published (1995/96) monetary values for different levels of pain, grief and suffering, in 2001/02 prices:
• a ‘minor’ case of ill-health (i.e. not involving taking time off) ‘costs’ around £177 per worker
• costs to an individual of £30 for loss of income (net of sick pay) when taking a day off
• costs for pain and suffering at around £2,200 for those taking time off.

‘Costs’

• Annual ‘costs’ of around £236 million (2001/02 prices) comprising:
  • - £42 million for pain and suffering for those not taking time off
  • - £194 million for those taking time off.

HAV can lead to debilitating effects other than VWF, which may lead to time off work or early retirement. The MRC report shows that the risk of sensorineural symptoms for a particular exposure level is similar to that for blanching. We can therefore assume that the number of people with sensorineural symptoms will be similar to the number with blanching. However, we do not know to what extent these two group overlap, so the total number of people with HAVS (blanching and/or sensorineural) is not available.

If the number of sensorineural complaints and musculoskeletal disorders caused by HAV were, respectively, 50% of VWF sufferers and 10% of the SWI figures, an extra 175,000 individuals would benefit from these Regulations. By keeping the same assumptions used for VWF sufferers, this would mean a total benefit of £66 million for pain and suffering for those not taking time off and £307 million for those taking time off. Total benefits would then be equal to £373 million.

The full draft report can be found by following this link....