Transfer of functions between Arm’s Length Bodies
Arm’s Length Bodies (ALBs) are bodies that have a role in the processes of national Government, but are not a part of it, and accordingly operate to a greater or lesser extent at Arm’s Length from ministers. The health and social care ALB landscape is made up of a mix of Executive Agencies (EAs) which are legally part of DHSC; Special Health Authorities (SpHAs), which are created by secondary legislation and are subject to direction by the Secretary of State; Executive Non-Departmental Public Bodies (NDPBs), which operate at arm’s length and are legally separate from DHSC and ministers, though a minister will be responsible to Parliament for them; and Advisory NDPBs , which are not separate legal identities and consist of external experts operating in a personal capacity. Although not strictly ALBs, DHSC also has Expert Committees operating as part of DHSC, and sponsors one Non-Ministerial Department, the Food Standards Agency, which is fully independent and accountable to Parliament.
	This configuration of ALBs has remained largely unchanged since the 2012 Act reforms. As the challenges facing the health system have changed over the last decade, the statutory nature of this configuration has made it harder for ALBs to change their role.
	These powers will allow the transfer, by regulations, of functions from one of a list of relevant NDPBs to another. It will also enable the Secretary of State, by regulations, to provide for the Secretary of State’s functions to be exercised by any of the listed NDPBs. These powers will not allow the Secretary of State’s functions to be transferred to a NDPB, merely the exercise of those functions. Responsibility will remain with the Secretary of State.
	There will be a full and transparent process when making regulations to transfer or provide for the exercise of functions. A formal consultation will take place, which will include the ALBs involved, and approval will need to be secured from both Houses of Parliament as the regulations are subject to the affirmative procedure.
	Additionally, consent must be obtained from the Devolved Governments for any transfer within their legislative competence or that modifies the functions of the Welsh or Scottish Ministers, or a Northern Ireland Department.
	The Executive Agencies are legally indistinguishable from the Secretary of State and, as such, there is no need for them to be separately included in these powers.
	The NDPBs to remain out of scope, given their particular, technical, regulatory functions, are the Care Quality Commission, the National Institute for Health and Care Excellence, and the Health Service Safety Investigations Body (once it is created as a NDPB through this Act).