The plans have come under fire from MPs and health groups with the CQC warning in May it could cause a conflict of interest.
A Department of Health and Social Care spokesperson said: ‘The Government remains committed to the Dash Review's objectives of simplifying the oversight landscape, improving co-ordination and ensuring investigations lead to better outcomes for patients.
‘We have listened to Parliamentarians and stakeholders and tabled amendments to the Health Bill to retain HSSIB in its current form, preserving its independent investigative function and specialist expertise.
‘We will continue to address duplication, strengthening coordination and accountability to ensure investigations deliver meaningful improvements in patient safety.'
A CQC spokesperson commented: ‘We note the Department of Health and Social Care's intention to amend the Health Bill to remove this proposal.
‘While this means that CQC's relationship with HSSIB would no longer be established by legislation, we will continue to work closely with HSSIB as a valuable partner in driving patient safety and improvement in healthcare.'
