Recommendations & Conclusions
20 items
3
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Ofcom lacks clarity about how it will identify and respond to non-compliance and when to use its enforcement powers. Ofcom estimates that there could be 100,000 or more service providers subject to regulation, with most of these being small businesses and / or based overseas. Ofcom will rely on automated …
Government response. Ofcom is developing several automated compliance monitoring tools, including a classification tool, live database of service characteristics, and automated analysis of terms of service, news, and user complaints. Ofcom will publish its final enforcement guidance in late 2024.
HM Treasury
4
Recommendation
Thirteenth Report - Preparedness for on…
Accepted
Ofcom has yet to work through the detail of how fees levied on industry will work, including how it will recover the set-up costs and cover the ongoing costs of the regime. Delays to the Online Safety Bill’s passage through parliament mean that introduction of the fee regime has been …
Government response. Ofcom plans to publicly consult on its fees regime approach in Summer 2024, including financial modelling and impact assessments. The department intends to consult on the approach to recouping Ofcom's pre-charging year costs once the fee regime is operational.
HM Treasury
6
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
The long-term success of the regime depends on Ofcom continuing to learn from international engagement and regular evaluation. No other country has introduced online safety regulation of an equivalent scale. Ofcom has engaged with UK and overseas regulators, and it sees the development of these relationships as crucial to the …
Government response. The department and Ofcom will formalise engagement by establishing an Evaluation Steering Group, with the department having a plan and framework for evaluation and Ofcom designing a full suite of metrics. Both are actively engaging internationally, including signing an MoU …
HM Treasury
1
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Science, Innovation and Technology (the Department) and Ofcom about preparedness for online safety regulation.1
Government response. The government states that Ofcom is on track to meet the statutory deadline of 26 April 2025 for reporting on illegal harms and protection of children. Ofcom has already issued its illegal harms consultation and will publish its protection of …
HM Treasury
7
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
As part of its implementation of the regime, and before the regime can take real effect, Ofcom will have to produce 54 documents setting out different parts of the regulations, including formal codes of practice and guidance for regulated service providers, risk registers and pieces of research. At the time …
Government response. The government states that Ofcom is on track to meet the statutory deadline of April 2025 for submitting its Codes of Practice on illegal harms and child protection. Ofcom has issued its illegal harms consultation and will publish its child …
HM Treasury
8
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Ofcom has been preparing for its new regulatory role since 2020 when the government confirmed its decision to appoint Ofcom as the regulator for online safety.10 Ofcom told us that there was no regulation of comparable scale and ambition, and that it therefore had to start from scratch in 2020. …
Government response. The government agrees and states that Ofcom is on track to meet the April 2025 deadline for submitting its Codes of Practice, having completed the illegal harms consultation and planning to publish the protection of children consultation in May 2024.
HM Treasury
13
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
As the regulator for online safety, Ofcom will need to monitor the compliance of over 100,000 service providers, who target the UK market or have a significant number of UK users, and that fall within the scope of the regulation. The majority of regulated service providers will be based overseas …
Government response. The government agrees and states Ofcom is designing data-driven tools, developing a classification tool, building a live database of service characteristics, automating analysis of terms of service and user complaints, and exploring tools to verify age checks for pornography. Ofcom …
HM Treasury
14
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
For the non-supervised service providers, Ofcom will monitor their compliance through automated data collection and analysis processes, supported by information from partner organisations that deal with the various harms. Ofcom told us that it has yet to develop the automated systems, but that it hopes the systems will provide an …
Government response. The government agrees with the committee's observations and confirms Ofcom is designing data-driven tools and several interconnected automated systems, including a classification tool and analysis tools for terms of service and complaints, with a target implementation date of Spring 2025.
HM Treasury
16
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Ofcom cannot undertake enforcement action until the codes of practice are published and, in some instances, set before parliament.31 Ofcom plans to publish its first codes, on illegal harms and protecting children, within 18 months of the Bill becoming law (April 2025).32 We asked Ofcom how it plans to reduce …
Government response. The government agrees with the committee's observations and confirms Ofcom is on track to meet the April 2025 deadline for codes of practice, having issued the illegal harms consultation and planning to publish the protection of children consultation in May …
HM Treasury
19
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Ofcom’s expenditure is subject to an overall budget cap set by HM Treasury. Treasury agreed to increase this cap to fund the upfront costs of the online safety regime, with the costs funded from Ofcom’s retention of Wireless Telegraphy Act 2006 receipts, which it would have otherwise handed to the …
Government response. The government agrees and states that Ofcom will consult publicly in Summer 2024 on its fees regime, including revenue definition and charging principles, aiming for implementation in the 2026-27 financial year. The department will consult on recouping pre-charging year costs …
HM Treasury
20
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
The online safety regime is expected to be self-financing, once it is fully operational, with both ongoing costs of the regime and the costs of its set-up covered by fees levied on industry.43 However, Ofcom will not start charging fees until 2026–27 and will not begin recouping the set-up costs …
Government response. The government agrees with the committee's observations, stating Ofcom will consult publicly on its fees regime in Summer 2024, aiming for implementation in the 2026-27 financial year, and plans to consult on recouping pre-charging costs once the regime is operational.
HM Treasury
21
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Ofcom has yet to determine many of the details of the fee regime, including the period over which set-up costs will be recovered; the revenue threshold at which firms start to pay fees; and the fee rates payable. It had also yet to undertake financial modelling to inform the design …
Government response. The government agrees and states that Ofcom will consult publicly in Summer 2024 on its fees regime, including revenue definition and charging principles, aiming for implementation in the 2026-27 financial year. The department will also consult on recouping pre-charging year …
HM Treasury
22
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
We asked Ofcom whether it has been able to give industry any indication about the likely scale of fees. Ofcom was unable to comment but did highlight that it will run a consultation during which industry can provide input and that ultimately the Government 39 Q 58; C&AG’s Report, para …
Government response. The government agrees with the committee's observations and states Ofcom will consult publicly on its fees regime in Summer 2024, aiming for implementation in the 2026-27 financial year, and plans to consult on recouping pre-charging costs once the regime is …
HM Treasury
23
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
To deliver its online safety work, Ofcom reported that it has increased its headcount, from around 950 people to what will probably be around 1,500, an increase of about 50%.52 Progress in meeting its staffing requirements has been broadly to schedule.53 Ofcom described such a major recruitment programme as both …
Government response. The government disagrees with the committee's implied recommendation, stating that both Ofcom and the Department already have effective workforce planning processes, including half-yearly reviews and horizon scanning, to ensure the necessary skills and people are in place.
HM Treasury
24
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Ofcom told us that some recruits have returned to industry, but that retention generally is not an issue at the moment.56 It told us that it is confident in its ability to attract the necessary talent, with people attracted by Ofcom’s mission and the opportunity to achieve change to online …
Government response. The government disagrees, stating that both the department and Ofcom already have effective workforce planning processes, including half-yearly reviews, horizon scanning, and yearly business planning, to ensure they have the necessary skills and people.
HM Treasury
25
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Ofcom has undertaken extensive organisational design work to prepare for and operate the new regulatory regime.58 Ofcom explained that, to improve accountability and organisational clarity, it re-organised around four groups of work, of which online safety is one. Accountability for delivering Ofcom’s online safety responsibilities sits within this online safety …
Government response. The government disagrees with the committee's implied recommendation, stating that both Ofcom and the Department already have effective workforce planning processes and initiatives, such as half-yearly reviews and horizon scanning, to ensure the right skills and people are in place.
HM Treasury
26
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
The Department also recognised that it needs to be constantly evolving its own capabilities so that it has the right resources to deal with the new risks and opportunities arising in a rapidly changing environment. It cited as examples the work it had done since its own creation in response …
Government response. The government disagrees, stating that both the department and Ofcom already have effective workforce planning, half-yearly workforce reviews, horizon scanning functions, and yearly business planning processes to ensure the necessary skills and capabilities are in place.
HM Treasury
27
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
The government considers that, with the Online Safety Act, the UK will be the first country to regulate such a comprehensive range of online harms, and the Department told us that a lot of what it described as ‘nascent legislation in this space’, particularly around Europe and elsewhere, looked a …
Government response. The government agrees with the committee's observations and states the recommendation is already implemented, citing ongoing international collaboration through various forums, a recent MoU with Australia, and a statutory instrument enhancing Ofcom's ability to share information with overseas regulators.
HM Treasury
28
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
Both the Department and Ofcom see collaboration, both nationally and internationally, as crucial to achieving change on behalf of the British public in line with the Act. Working in partnership with other regulators will help them be alert to the next set of issues arising and how they might be …
Government response. The government agrees and states the recommendation is implemented, highlighting the department's evaluation framework and plans, Ofcom's metric design, and ongoing national and international collaboration efforts, including an MOU with Australia and a statutory instrument to enhance information sharing with …
HM Treasury
29
Conclusion
Thirteenth Report - Preparedness for on…
Accepted
The Department and Ofcom also recognise the role evaluation will play in ensuring the regulatory regime’s future success. For example, Ofcom is developing evaluations and key metrics to make sure that its proposals are being acted on and are having the effect that it intended, while the Online Safety Act …
Government response. The government agrees with the committee's observations, stating the recommendation is already implemented through the department's existing evaluation framework and Ofcom's ongoing work to design a full suite of metrics and establish an Evaluation Steering Group.
HM Treasury