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Regulating the Security Industry

The private security industry covers a number of services. These include security guarding, door supervision and vehicle clamping. The industry employs about 500,000 people across the United Kingdom. About half are employed on a contract basis rather than directly employed by security companies, and are subject to regulation.

The Security Industry Authority was set up in April 2003 with the objectives of improving standards in the private security industry and reducing crime in the sector. Before regulation the security industry was seen as an underperforming industry which had poor competitiveness and performance. It also found it difficult to respond to the market’s needs, a high staff turnover of 30 per cent a year, poor employment practices and quite a high level of criminal activity.

The Security Industry Authority meets its objectives mainly by licensing individuals who are subject to regulation. It has also established a Voluntary Approved Contractor Scheme. The Scheme provides accredited companies who use contract security staff to obtain certain benefits. These include being able to use staff who are waiting for a licence to be issued.

The Authority also has a duty to ensure that legislation is complied with and enforced. Finally, it sets or approves standards of conduct and training for the industry.

Our report Regulating the Security Industry identified how effectively and efficiently the Authority is operating in England and makes recommendations for improvements. It examines:

the Authority’s aims and objectives and some of the key operational issues facing the Authority in the future;
how effectively the Authority has introduced Licensing and the Approved Contractor Scheme;
the Authority’s performance against the Government’s key principles of good regulation; and
how it manages its compliance and enforcement activities with partners such as the police.