Legal Aid, Sentencing and Punishment of Offenders Bill
(13 years, 1 month ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
18:00 - The House divided: - Ayes: 311 / Noes: 235 - Question accordingly agreed to.
19:32 - The House divided: - Ayes: 208 / Noes: 302 - Question accordingly negatived.
22:00 - The House divided: - Ayes: 23 / Noes: 300 - Question accordingly negatived.
The Lord Chancellor and Secretary of State for Justice (Mr Kenneth Clarke)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
Government new clause 31—Life sentence for second listed offence.
Government new clause 32—New extended sentences.
Government new clause 33—New extended sentences: release on licence etc.
Government new clause 34—Power to change test for release on licence of certain prisoners.
New clause 3—Determination of minimum term in relation to mandatory life sentence—
‘In Schedule 21 of the Criminal Justice Act 2003—
“(a) Substitute paragraph 5(2)(g) with—
“(g) a murder that is racially or religiously aggravated or aggravated by sexual orientation or disability,”
(b) Substitute paragraph 5A(10)(b) with—
“(b) the fact that the victim was at greater risk of harm because of age or disability,”.’.
Government new schedule 4—‘Life sentence for second listed offence etc: new Schedule 15B to Criminal Justice Act 2003 Offences listed for the purposes of sections 224A, 226A and 246A.
Government new schedule 5—‘Life sentence for second listed offence: consequential and transitory provision.
Government new schedule 6—‘New extended sentences: consequential and transitory provision.
Government new schedule 7—‘Release of new extended sentence prisoners: consequential provision.
Mr Clarke
The new clauses and schedules relate to the abolition of sentences of imprisonment for public protection, known as IPP sentences. They were introduced in the Criminal Justice Act 2003 and have been in operation since 2005. Since their introduction, there have been numerous problems with them. The Government’s policy is that they must be replaced, and we have brought forward proposals to do so. My proposals to replace them with tough determinate sentences have inevitably aroused criticism from both the right and the left—the story of my life, as I complained yesterday. We are replacing a regime that did not work as it was intended to with one that gives the public the fullest possible protection from serious, violent and sexual crime.
The sentences in their present form are unclear, inconsistent and have been used far more than was ever intended or contemplated by either the Government or Parliament when the sentence was first created. The right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), who is in his place, was very much involved in their introduction. I have no idea exactly what his view is now, but I am sure that he never imagined that thousands of people would be detained in prison indefinitely under these sentences. The debates at the time contemplated only a few hundred people.
Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab)
I shall be extremely brief, given the time. It would be helpful, following the Secretary of State’s meeting with me and my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins), if he assured the House that reconsideration of the detail will take place in the House of Lords. There is no difference between those of us who accept that the original intention has not been followed through and those who think that the changes that my right hon. Friend the Member for Blackburn (Mr Straw) introduced have not fully bitten as intended, but the propositions before us this afternoon do not meet the specific need that was identified back in the early 2000s by my right hon. Friend the Member for Blackburn, and which I carried into being.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The right hon. Gentleman knows that he should make a short intervention, not a speech at this stage.
Mr Deputy Speaker
Order. I remind the right hon. Gentleman that he may have finished, but he should not take so long in future.
Mr Clarke
I am grateful to the right hon. Gentleman, and I will remember the need for extreme brevity. I am grateful for the discussion with the right hon. Members for Sheffield, Brightside and Hillsborough and for Wythenshawe and Sale East (Paul Goggins), and I will follow up the account by the right hon. Member for Wythenshawe and Sale East of the experience in Northern Ireland. We all acknowledge that where we are is not where anyone intended us to be. That is why we are addressing how to deal with serious and violent offenders.
I am sure that the words of the right hon. Member for Sheffield, Brightside and Hillsborough will be noted in the House of Lords. He speaks here with great authority. We will reflect on what is said by those who say that of course we have not got it quite right.
Mr Clarke
Normally I would give way, and if we had a full day of debate, I would have expected to give way to Members on both sides of the Chamber—[Interruption.] It is not my fault. Let me first finish explaining the general case. I will then try to give way as generously as I can. It would be quite possible to take so many interventions that they filled the remaining time, but I have no intention of doing so.
I remind the House that in June the Prime Minister announced that the Government intended to replace IPP sentences. He and I had agreed on that. We had originally proposed in our Green Paper greatly to restrict the number by raising the threshold above which IPP sentences were given. The sentencing parts of the Bill were received extremely well in public consultation because those who responded were largely those involved in the criminal justice system, but we received many representations saying that IPP sentences should abolished completely, which is why we have moved on.
Mr Clarke
I said that I would give way when I had finished my general points, and I will do so in a few moments.
I was referring not just to my opinion and that of the right hon. Member for Sheffield, Brightside and Hillsborough. I shall remind the House of some of the people who have said similar things. Louise Casey, the Commissioner for Victims and Witnesses, whose appointment to deal with problem families has been welcomed, said that she was pleased there would be a review of indeterminate sentences as they
“often leave victims in a horrible situation of not knowing when a criminal may be released from prison”.
She welcomed the proposal that tougher determinate sentences will be sought instead. Tim Godwin—as we all know, he was acting Metropolitan Police Commissioner until recently, and is now deputy commissioner and the criminal justice lead for the Association of Chief Police Officers—said he welcomed the review of IPP sentences and its focus on robust alternatives that will ensure the public is protected from the most serious offenders, as it is a source of frustration for victims and their families as to what a sentence actually means.
I cannot resist adding that the shadow Justice Secretary has suddenly taken up an extraordinarily far right position on this issue at the last moment. I have looked up what position he took, or at least what position Liberty took when he was its chairman in 2002, when indeterminate sentences were first introduced. At that time Liberty, under his chairmanship, denounced IPP sentences as
“a convoluted sleight of hand”
which aids neither accessibility of law for transparency in the sentencing process. His successors at Liberty have not changed their mind. I said yesterday that tomorrow he would press an amendment that has mandatory sentences for 12-year-olds. Old Fabians must be spinning in their graves as the former chairman of the Fabian Society takes up a totally opportunist position.
What is wrong is that indeterminate sentences are unfair between prisoner and prisoner. The Parole Board has been given the task of trying to see whether a prisoner could prove that he is no longer a risk to the public. It is almost impossible for the prisoner to prove that, so it is something of a lottery and hardly any are released. We therefore face an impossible problem.
As I have said, IPP sentences are piling up, and they have been handed down at a rate of more than 800 a year even after the changes made in 2008. At the moment, more than 6,500 offenders are serving those sentences, of whom more than 3,000 have finished what the public regard as their sentence—the tariff for what they have done. If we do not do anything about it, the number of IPP sentences will pile up to 8,000 or 9,000 by 2015—10% of the entire prison population. Sometimes, their co-accused who committed the same crime and were given a determinate sentence were released long ago. That is unjust to the people in question and completely inconsistent with the policy of punishment, reform and rehabilitation, which has widespread support. Only Opposition Front Benchers are still in favour of a punishment that leaves a rather randomly selected group to languish indefinitely in prison, for their lifetime if necessary.
Derek Twigg
Has the Secretary of State been listening to police officers such as the one in my constituency who has written to me to say that IPP sentences are working? He gives the case of an individual who set fire to a house, causing danger to others, who clearly presented a serious risk to the public. That police officer states:
“IPPs are a very useful tool for the Courts and I respectfully suggest that they should be retained and any issues with how they are implemented be looked at instead.”
That is a police officer serving on the front line.
Mr Clarke
I do not claim rank for Mr Godwin, but I quoted what he has said on behalf of ACPO. Of course there are always dissenting views—I have never presented any proposal on anything that has had 100% approval—but the overwhelming majority of responses from those involved in the criminal justice system suggested that IPP sentences should be repealed. Those are not people who wish to be soft on crime, but they believe that IPP sentences have not worked as intended, as we have already heard in today’s exchanges, and need to be replaced. To reassure policemen, such as the one that the hon. Gentleman mentions, that a tough new regime will give them protection, I will spell out elements of the new regime.
Philip Davies (Shipley) (Con)
Is not the fact of the matter that indeterminate sentences have a very low reoffending rate, and that most members of the public rather like the idea that people are not released from prison until it is safe? What will my right hon. and learned Friend do to ensure that people who are released go through all the necessary treatment and programmes to address their offending behaviour before they are released?
Mr Clarke
My hon. Friend’s last point is perfectly fair, and I am about to make some points that should reassure the great bulk of the public. Of course we must have in place a very effective method of dealing with all those who commit the worst sexual and violent offences. No one is suggesting that we do not need an effective regime for that.
For the very serious offenders, the ones who are among the worst of the likely inhabitants of Her Majesty’s prisons, there will be a new mandatory life sentence. That will apply in cases in which the offender has committed, on two consecutive occasions, two very serious sexual or violent offences, when each of which has been serious enough to merit a determinate sentence of 10 years or more.
I was criticised from the left in another place, and probably will be here, for introducing a new mandatory life sentence. We have only one at the moment, which is for murder, and everybody accepts it. As I have said, however, the new mandatory sentence is mainly intended to reassure those who, like my hon. Friend, are worried that the worst offenders might occasionally get out. We are talking about very serious offenders, most of whom would get a life sentence anyway if they had committed two offences meriting determinate sentences of 10 years or more. I do not think that many such people would avoid a life sentence, but as hon. Members can see, a life sentence in the new clause is subject to a caveat—the offender will receive a mandatory sentence unless their circumstances or the circumstances of the offence
“make it unjust to do so”.
Mr Jack Straw (Blackburn) (Lab)
Will the right hon. and learned Gentleman explain the practical difference between an offender who is given an IPP for, say, a minimum tariff of five years, who will then be released by the Parole Board on proof of meeting certain conditions, and someone who is given a discretionary life sentence with a tariff of five years who is released by the Parole Board on exactly the same conditions? What is the difference?
Mr Clarke
Well, there are differences in the regime, the sentence planning and so on, but not very many. I will go back to the point about the regime that we want to introduce for people with extended determinate sentences, but the right hon. Gentleman makes my point. What is wrong with saying that the courts should use the ordinary life sentence? They will use a life sentence when they judge that a case is so serious, and when future risk is so high, that it is the only proper sentence.
For other offenders, we are introducing a new extended determinate sentence. The offender will receive a custodial sentence plus a further long extended period of licence set by the court. Those will be quite long determinate sentences, and the offenders who receive them will serve at least two thirds of them. In serious cases, offenders must apply to the Parole Board for release, and the board may keep them inside until the end of the determinate sentence.
Mr Clarke
I shall just finish explaining this point and then answer questions.
The new sentence can be given for any sexual or violent offence, provided that the court thinks the offender presents a risk of causing serious harm through reoffending, and that the offence meets the four-year seriousness threshold that is currently in place for IPP sentences and extended sentences for public protection. The new sentence can also be given when the offender does not reach the four-year threshold, but has previously been convicted of an offence listed in proposed schedule 15B. I will cut out further detailed explanation, but that means that any offender who would previously have received an IPP will be eligible for the new sentence if he has not received either the mandatory life or the tougher, discretionary life sentence.
Sir Alan Beith (Berwick-upon-Tweed) (LD)
I very much agree with what my right hon. and learned Friend is trying to do, but he is writing what is the likely practice of the court into the statute book. He mentioned the Parole Board and new clause 34, which causes me concern. He appears to be giving to himself and the Executive the power to direct a court when dealing with existing IPP prisoners, because the Parole Board is regarded in law as a court, and he will give directions to it under new clause 34.
Mr Clarke
I shall come to the Parole Board before I conclude my remarks, but we are not taking away its power: nobody who previously had an IPP will be released, even at the two-thirds point, unless they have first satisfied the board.
The most obvious difference between life sentences, which will now be used more widely, and IPP sentences is that, in the case of life imprisonment, licences are for life and subject always to recall, whereas IPP sentences are not. However, as I said, criminals who complete an extended determinate sentence must then serve extended licence periods, during which time they will be closely monitored and returned to prison if necessary. The courts have the power to give up to an extra five years of licence for violent offenders and eight years for sexual offenders on top of their prison licence.
There are further protections. Some people believe—the Labour Front Bench team certainly affect to believe—that we are exposing people to risk by making this much overdue change. We are also introducing—not in the legislation, but I undertake to introduce them—compulsory intervention plans for dangerous offenders while they are in prison, so that they are supported to change their ways and not commit more crimes when they are eventually released. By the end of sentence, offenders should therefore have undergone interventions—made in a more certain and organised way than at present—to address their offending behaviour.
There is rightly concern that those currently serving IPP sentences should be supported in progressing through their sentences and achieving release on licence. However, we will be using our best efforts to improve the progression of these prisoners through sentence, including with improvements to assessment, sentence planning and delivery, and parole review processes. We continue to monitor outcomes to ensure further improvements in this area.
There are yet further protections available to the court. We do not believe that our proposed changes put the public at risk or weaken our risk-management regime. Most sexual or violent offenders sentenced to 12 months or more in custody will fall under the multi-agency public protection arrangements framework, which means that the relevant authorities will work together to co-ordinate assessments of risk and risk-management plans for the offender once they have been released on licence. Robust risk-management systems are now in place for a range of offenders. Court orders are also available to manage the risk of serious sexual and violent offenders who appear to present a risk at the end of their sentence. Violent offender orders and sex offending prevention orders place restrictions on these offenders, and if they breach those orders, they can be sent back to prison.
In the sentencing Green Paper, we raise the question of whether the Parole Board’s test for release in these cases is the right one, because only a tiny number of people ever emerge from prison at the moment—the rate is less than 5% a year—and we are acquiring people who are still in prison years after they finished the tariff that the judge imposed on them. This is a question that we will explore further. The amendments give the Secretary of State a power to change the release test used by the Parole Board, which is set in statute for IPP prisoners and for prisoners serving the new extended sentence. The power will be subject to the affirmative procedure. We will consult carefully and see what happens to the Parole Board and the courts once we have made the present form of sentence extinct for former prisoners.
The trouble now is that someone who has finished his tariff has to stay in prison unless he can persuade the Parole Board that it is safe to let him out. [Interruption.] That is it; that can be difficult, sitting in a prison cell, although we are going to produce some management plans. On the other hand, if we are keeping someone in beyond their tariff, it is certainly arguable that we should have some positive reason for fearing that there is a risk that he is going to offend when he leaves. We have to reflect—we will consult on this—on whether we have been giving the Parole Board an almost impossible task. It is no good pretending that it can come to a scientifically certain conclusion in each case. None of us would like to say, if we met a range of prisoners, which were now reformed and which would offend again. The Parole Board gets it wrong now: some of those it releases offend again, while some of those in prison are never going to offend again, if we can actually get them out. We will consult on whether the current release tests for IPP sentences and the new extended indeterminate sentence ensure effective public protection while allowing everyone to be satisfied—as far as they can ever be satisfied in this world—that the offenders can now be safely managed in the community.
Mr Straw
Some 40% of discretionary and mandatory lifers are post-tariff. They have to prove that it is safe to release them. Can the Secretary of State please explain what the difference is in substance between someone on a life sentence who has to satisfy the Parole Board that it is safe to release them and someone on an IPP?
Mr Clarke
It is not. What I think the right hon. Gentleman is saying—I will listen to him in a moment—is that he proposes to defend what is left of the last Government’s proposals, the author of which acknowledged quite early in my speech that they plainly needed to be changed. If I get the chance, I will listen to what the right hon. Member for Blackburn (Mr Straw) is trying to argue, but he seems to be reassuring us that life sentences fulfil that requirement for the very worst people—that they are looked at carefully before being let out again—and those people will be on licence for life: once they start going in for aberrant behaviour, they can be recalled to prison and punished once more.
Apart from the very outlying people on the right and the left, I hope that I have satisfied everybody. It is high time that we reformed indeterminate sentences. Personally, I am amazed that they have survived judicial review and challenge in the courts thus far, but if something was not done, they would not survive very much further, which would lead to unfortunate consequences if a court suddenly started ordering us to release such prisoners and decided that they were being held unlawfully. I have recently described them as a “stain on the system”. I said that at a private meeting in the House of Lords—although it soon found its way into the press—but it is my opinion. What we are putting in place is protection for the public: far more rational, certain, determinate sentences, which is much more in line with how we think the British system should behave.
I will, of course, be followed in this debate by the right hon. Member for Tooting (Sadiq Khan). I have already expressed my amazement at his position, and I have found some other quotations from him in my time. I cannot understand how he can match up to his present position. For example, when we both started in July last year, his leader—the current Leader of the Opposition—said:
“I don’t think we should try to out-right the right on crime,”
and said that I was
“opening up an opportunity for us to redefine part of the debate about criminal justice.”
Only a few weeks ago, addressing the Howard League, the right hon. Member for Tooting said—in a lecture that I thought put him in a very convoluted position between his conscience and where he is at present—that
“our big challenge is to communicate that punishment and reform can and should go hand-in-hand…To deliver this calls for an honest debate”.
The right hon. Gentleman, the shadow Justice Secretary, is a radical lawyer from south London—he is more radical than I am—and he is trying to “out-right” me in what is an absurd and hopeless case. What we are putting in place is an altogether rational and sensible system.
Sadiq Khan
I thank the Justice Secretary.
“Public safety remains our primary concern and indeterminate sentences will always be appropriate for the most serious crimes”—
not my words, although I agree with them entirely, but those of this Government’s Green Paper, “Breaking the Cycle”, which was published in December 2010. How things have changed in just 11 months: instead of what was said then, at the last minute—and after interference from No. 10 Downing street—there was suddenly no mention of indeterminate sentences when the Bill was published in June, more than four months ago. At the last possible moment—at one minute to midnight—we are presented with new clauses that propose the total abolition of indeterminate sentences.
Mr Kenneth Clarke
The right hon. Gentleman seems to be using his time to complain about not having enough time. Before he develops any conspiracy theories, may I make my position clear? I have spoken out against indeterminate sentences in the House before. The Green Paper proposed to restrict them, and I explained why. The announcement in June was made after the most careful discussion with the Prime Minister. We both agreed it, and the idea that I have been forced into accepting the abolition of indeterminate sentences is complete nonsense. The consultation process encouraged me to believe that serious people in the justice system were prepared to go for total abolition, and I leapt at the opportunity, as should the right hon. Gentleman, as a former chairman of Justice and of the Fabian Society. I cannot imagine where he thinks he is taking the labour movement to.
Sadiq Khan
We now know that, when this Government review policy, it means that they abolish it. This is the same Justice Secretary who signed off the Green Paper last December.
Not for the first time, the Government will have to leave it to colleagues from all parties and none in the other place to perform the scrutiny that this Bill deserves. The Justice Secretary is presenting us today with a blueprint that will risk more crime, more victims, and more serious and dangerous offenders being out on the streets. It is as simple as that, and he knows it. No amount of smoke and mirrors can disguise the fact that, by abolishing indeterminate sentences, he is risking the safety of communities in each and every constituency.
“Many dangerous criminals will be released, including repeat offenders, regardless of the risk they pose to the public.”
Those are not my words, but those of the right hon. Member for Arundel and South Downs (Nick Herbert), now the Minister for Policing and Criminal Justice, back in 2008, when he was commenting on the changes to indeterminate sentences that we made when we were in government. We made changes to them, but this Government are now proposing to abolish them altogether. What happened to the party that believed in law and order?
I spent a few minutes this morning finding recent cases in which judges had given an indeterminate sentence to a convicted offender to protect the public. I will not give the names of the offenders or the victims, as I do not want to cause the victims further distress. A South Wales police press release from September this year bears the heading “Indeterminate prison sentence for convicted rapist”.
It goes on:
“A Cynon Valley man described as a ‘dangerous individual’ has been given an indeterminate sentence for the rape of two women and wounding of another…D, who the judge described as a dangerous individual, will not be considered for parole for six years. D’s victims have released the following…statement: ‘Our lives will never be the same after the trauma D has put us through. We were physically, mentally, financially and emotionally abused and controlled by him. We are satisfied with the court’s decision to give him an indeterminate sentence and relieved that no-one else will suffer like we have.’”
In this October’s online version of the Birmingham Mail was the headline, “Teenager jailed for stab attacks on father and son in West Heath”. The article stated:
“A teenager has been given an indeterminate sentence for stabbing a father and son while they tried to protect a ‘petrified’ youngster who sought refuge in their Birmingham home…Judge William Davis QC said: ‘You stabbed both the householder and his son causing both of them significant injury. It is a very serious offence because two people were attacked on their own door step and one of them left perilously close to death.’ The judge said he believed J to be a ‘dangerous young man’. After sentencing”,
the victim said,
“I am extremely pleased the judge recognised the seriousness of the offence. It shows the public that carrying knives will not be accepted in society today.”
This month’s North-West Evening Mail contained the headline, “Caustic soda brute loses appeal against sentence”, and continued:
“A ‘dangerous and manipulative’ thug, who scarred a teenager for life by pouring caustic soda on her face, has been told by top judges he deserved his indefinite jail term…On Thursday G challenged his indefinite jail terms, with his lawyers also arguing the minimum five years he was ordered to serve before applying for parole was ‘excessive’. But his appeal was thrown out by judges sitting at London’s Criminal Appeal Court, who described G as a ‘very dangerous man’ who should not be released from prison until the Parole Board considers it safe to do so…Sentencing him, the crown court judge said he was a ‘controlling, manipulative, emotionless and uncaring man’ who was a danger to women…The appeal judge”,
Mr Justice Spencer,
“said: ‘The judge was quite correct to conclude that the appellant should not be released until the Parole Board deems it safe for him to be released.’”
Mr Kenneth Clarke
Can the right hon. Gentleman think of any good reason why, given the remarks he has provided about the sentences, that the perpetrators would not have been given a life sentence? Normally, people like that would get a life sentence. Since there have been IPP sentences, some people have got them, but in the cases the right hon. Gentleman describes, judges will go back to the normal practice of giving a life sentence.
Sadiq Khan
They will not. The right hon. and learned Gentleman’s proposals require there to have been a first offence, and the schedule provides for sentences of 10 or more years. The person found guilty will have to have come back for a second offence and be found guilty of an offence that also requires a sentence of 10 or more years. In all these cases—the right hon. and learned Gentleman knows this—the Government will have taken away from the judge who has heard all the evidence and knows the facts of the case the power to give the IPP sentence.
Mr Clarke
There is no qualification for a life sentence. People can be sent down for a life sentence for their first offence if it is serious enough and demonstrates the danger posed to the public. We are not introducing any qualifications at all to the power to give life imprisonment.
Sadiq Khan
I could not have demolished the arguments better than the right hon. and learned Gentleman just has. He makes the exact point for me. Under the proposals we are presented with today, our judges will be stripped of the power to prevent the most serious criminals from being released and going on to be a danger to society. We can imagine a scenario—and an horrific one at that—of someone committing a serious and violent assault being caught, charged and found guilty. Under the Government’s new proposals, I accept that they might receive an extended determinate sentence and be eligible for release after two thirds of their sentence, should the Parole Board be satisfied. However, even if the Parole Board were not satisfied after two thirds of the sentence had elapsed, there would be nothing to prevent release at the end of the full sentence handed down by the judge. Dangerous individuals would be released at the end of their extended determinate sentence irrespective of whether they posed a risk to the public. Under the new proposals, judges will be able to do absolutely nothing about that. They will be powerless to deprive the offender further of his liberty in order to keep the public safe. I should be happy for the Justice Secretary to intervene on that point, but he apparently does not wish to do so.
Mr Clarke
The right hon. Gentleman clearly did not understand my question. He gave some dreadful descriptions of dreadful cases, featuring what—when the full circumstances are known—are clearly some of the worst examples of violence and sexual offences that could be found. The point is, however, that such people will receive life sentences, because such sentences are available to the court, and they will not be released until someone is satisfied that they are no longer as great a risk as they were. They will be subject to licence for the rest of their lives, and it will be possible to recall them if they start behaving in any sort of threatening way. The life sentence fills the gap that the right hon. Gentleman claims I am creating. We are not changing the position at all.
Sadiq Khan
I realise that the Justice Secretary has not practised law recently, but if a judge could deliver a life sentence for such offences now, he or she would do so. It is because judges have the power under the IPP sentence to deliver indeterminate sentences to protect the public that they deliver those sentences. I am afraid that the Justice Secretary is not right.
A critical weapon will be absent from a judge’s arsenal, preventing that judge from handing down the most appropriate sentence. The judge will simply not be able to sentence the offender with the condition that only when the authorities are satisfied that he is not a risk to society will he be released. I know that that will free up prison places and save the Government money, but taking risks with public safety is plain wrong, which is why we will oppose new clause 30.
Public safety will also be compromised by the proposed “two strikes and you’re out” sentences. That is a great media soundbite and a sure-fire way of making the Government seem tougher than they really are, and it is precisely the kind of thinking that lies behind the inclusion of the words “punishment of offenders” in the Bill, but policies relating to public safety cannot be determined by a public relations strategy.
We do not have to scratch very far beneath the surface to see that the Government’s plans are riddled with problems. Not only are they a rehash of failed Conservative policy from the 1990s, but they introduce a worrying amount of risk—risk that will undermine public safety. Through their “two strikes” policy, the Government absolve themselves totally of any responsibility to identify the serious, violent offenders who are most likely to reoffend. That should be done at the time when the first sentence is handed down for the commission of a heinous crime. It was for the purposes of precisely this scenario that the previous Government created indeterminate sentences, but this Government are making no effort to protect the public from those who are most likely to commit further serious and violent crime following their release. They will address the problem only once the offender has committed a second crime.
Mr Graham Stuart (Beverley and Holderness) (Con)
The right hon. Gentleman has cited cases, and appalling cases at that, in which he feels that an indeterminate sentence is appropriate. Can he give any examples of cases in which he thinks that an indeterminate sentence has not led to justice—in which people have been locked up for many years, perhaps longer than they should have been?
Sadiq Khan
I shall come to the challenges posed by IPP sentencing. I accept that criticisms could be made about cases of people who should perhaps have been released and have not been. The hon. Gentleman has made a fair point. However, I do not think that the Government should risk the possibility that their policy will create countless additional victims, pain and misery that could be prevented if they took seriously their responsibility to keep the public safe. It should also be noted that the threshold for the handing down of a mandatory life sentence for the second offence is higher than that required for an indeterminate sentence. As a result, there is a risk that some of the most dangerous and serious criminals will not even be covered by the “two strikes” proposals. All that points to the need for some kind of indeterminate sentence that judges could use only in the most serious circumstances.
The 2008 reforms helped to deal with some of the problems that were inherent in the Criminal Justice Act 2003, and I pay tribute, as did the Justice Secretary, to the work of my right hon. Friend the Member for Blackburn (Mr Straw) for the work that he did at that time. If the Government think that further reform is required, they can take many positive lessons from Northern Ireland’s successful introduction of indeterminate custodial sentences. I know that the Justice Secretary has corresponded with Northern Ireland colleagues, and has had discussions with my right hon. Friends the Members for Wythenshawe and Sale East (Paul Goggins) and for Sheffield, Brightside and Hillsborough (Mr Blunkett) on this very matter. He has said nothing, however, about why he believes the Northern Ireland experience does not contain lessons for England and Wales; instead, he simply dismissed that possibility out of hand.
Philip Davies
Unlike the Front Benchers, I will try to keep my speech brief so as to allow other Members to contribute.
The Government are making a serious mistake by getting rid of indeterminate sentences, and I believe the decision will come back to bite them on the bottom. The vast majority of people serving indeterminate sentences have committed crimes such as manslaughter, other homicide and attempted homicide, other violence against the person, rape, other sexual offences, robbery and arson. Why on earth would we want a Government who think it is perfectly acceptable to let those people out of prison before they are deemed safe to be released out among the public?
Philip Davies
The shadow Secretary of State has hit the nail on the head. The Secretary of State started off in his post by saying that the most important thing for him was reducing reoffending. Well, we are talking about the crown jewel in the criminal justice system for dealing with reoffending. [Interruption.] I know that the Liberal Democrats do not believe that—they are soft on crime so I would not expect them to accept it. By the end of last year, 206 people who had served indeterminate sentences had been released from prison and 30% of them had committed more than 15 previous offences. Many of these people were not just dangerous offenders, but persistent offenders. How many of those 206 had committed another offence by the end of last year? The answer is just 11, or about 5%. The Secretary of State would give his right arm for reoffending rates of that order across the criminal justice system, so why on earth does someone who is supposedly committed to reducing the reoffending rate want to scrap the best-performing part of the criminal justice system on reoffending? This beggars belief. It comes back to the point that his real motive is not about reducing reoffending or protecting the public; it is about reducing the prison population. That is the only thing that he has ever been interested in, and this measure is all the proof we ever needed that that is his only motivation. It is absolutely appalling that a Government supposedly dominated by the Conservative party—the party of law and order—could be letting dangerous offenders out of prison before they are deemed safe to be released.
I wish to give a couple of examples of the people we are talking about from my local area of Bradford. Toffozul Ali was a convicted killer who was locked up indefinitely for a sudden and sustained knife attack in Bradford. Ali shook hands with his victim, Darren Jones, before stabbing him from behind, causing wounds to his arm, chest and knee. Ali already had a conviction for manslaughter for stabbing an Asian man to death when he was only 16, and he was branded a public danger and sentenced to an IPP. This Government seem to think it is fine that he can be released from prison before he is deemed safe to be released from prison—it is an absolute disgrace. Martin Ellerton was locked up indefinitely for stabbing his father to death, and he confessed to a six-year crime spree involving more than 630 offences of burglary and theft. These are the types of people we are talking about. The Secretary of State seems more concerned with their rights than with those of the people in places such as Shipley, who want to be protected from these people.
Stephen Ayre was a convicted killer who abducted and raped a 10-year-old boy in my constituency when he was unnecessarily released from prison. The father of that boy has gone through the trauma of that to call publicly for the Secretary of State to rethink his proposals on indeterminate sentences, saying:
“I would not wish what we’ve been through on anyone. The system failed my son six years ago. But Ken Clarke’s changes will only make things worse.”
I guarantee that people will be released from prison who otherwise would not have been and I guarantee that those people will go on to commit serious offences. What will the people who voted for this measure think about that, given that they will have created unnecessary victims of crime?
Sadiq Khan
Does the hon. Gentleman realise that the new proposals mean that it is possible for somebody to receive an extended determinate sentence, to go on no courses or programmes, to sit in their cell for the duration of the sentence and still be released at the end of their determinate sentence?
Philip Davies
I have a lot of sympathy with what the shadow Secretary of State says. The point is that, at the moment, these people are released only when they are deemed safe to be released. Under a determinate sentence—irrespective of whether or not people are safe to be released, whether or not they have gone through the programmes they need to go through to address their offending behaviour and whether or not they have behaved well in prison—they will be released back out to the public. That is an absolute disgrace, as is debating this issue in just 73 minutes, with 30 minutes for speeches by Back Benchers. I will give up at that point to make room for other people, but the Secretary of State should be ashamed of himself as this will measure create further unnecessary victims of crime.
Kate Green (Stretford and Urmston) (Lab)
I apologise for diverting the House to a rather different part of the debate, but my new clause 3, which I am pleased has support from Members across the House, is extremely important to a group of victims and their families—those for whom disability has been the motivation for murder or other violent crimes against disabled people. My new clause would apply the same minimum tariff in cases of murder in which disability has been a motivating factor as currently applies in similar cases with a sexual, racial or religious motivation. It would also shift the application of the aggravating feature of disability from being a matter of the victim being seen as vulnerable to a matter of the victim being at greater risk of harm, thereby firmly placing the obligation on the perpetrator.
Paul Maynard (Blackpool North and Cleveleys) (Con)
I am delighted to support this new clause. Does the hon. Lady agree that although this might seem like an obtuse issue to hon. Members in the Chamber it is attracting great attention outside within the disabled community? Does she also agree that there will be utter incomprehension if we fail to make progress on this issue, which should be a simple matter of human dignity and equality?
Kate Green
The hon. Gentleman is absolutely right and he has raised this issue in the House and with the Lord Chancellor before. Many disability organisations and the families of victims of such crimes have contacted him and me to express their very deep concerns. I am particularly indebted to the Disability Hate Crime network, to Katherine Quarmby, an independent journalist, and to the Royal Association for Disability Rights. I am also especially indebted to Christine Oliver, the sister of Keith Philpott, who was a learning disabled victim of murder, for taking the time to talk to me about her family’s experience in relation to my bringing the new clause before the House.
Mr Kenneth Clarke
I am sorry to intervene but, for the benefit of the debate on the other subject, may I assure the hon. Lady on behalf of the Government that we agree with her and my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard)? I am advised that the new clause is defective in its drafting—I can tell her why—and I can assure her that we will table amendments in the other House to give effect to what she is asking for. We also propose to cover the transgender issue. I think that will help us to get on with the debate.
Kate Green
I am extremely grateful to the Lord Chancellor, as will be the many disabled people and their families who have been in contact with me. I am delighted that a Government amendment will be brought forward in the other place and I shall not detain the House further.
Sir Alan Beith
The hon. Member for Stretford and Urmston (Kate Green) must be delighted that so brief and concise a speech has produced so immediate, thorough and satisfactory a response. I welcome what the Government are doing about this.
I want to be brief so I shall resist the temptation to go into the extraordinary intellectual journey that the right hon. Member for Tooting (Sadiq Khan) seems to have undertaken. I shall also resist the temptation to go into the habit of the previous Government of releasing people from prison at any moment when the jails seemed to be rather full without any reference to sentence planning or, for that matter, to the annual criminal justice Bill to which new clauses were always added on Report as far as I can recall—a practice I rather deplore because, as in this case, it denies us the opportunity to give new clauses proper scrutiny. I want to make it quite clear that the continuance of what I regard as a blot on the system—the use of indeterminate sentences—is something that I do not support. I therefore welcome the Lord Chancellor’s action to remove such sentences from our system, and I believe that view is widely shared in the criminal justice system.
People are concerned about the possibility of serious criminals re-entering society and committing other very serious offences, but how can they conclude that the best thing to do with such people is to put them in prison without our having any idea how long they might stay there? Surely, it is better to have a much clearer idea that they will be in prison for a long time and that if they are ever released, it will be under licence for life. I do not see why it should be preferable for the public to be told, “Well, we’ve put the chap in prison, but we’re not really sure when he’ll come out and a board that you know very little about will decide whether it’s safe.” I think most members of the public would be quite suspicious of that and would rather hear that there was a clear and long sentence. I am suspicious of mandatory sentences, but as a means of giving reassurance on how the courts might be expected to behave in the sort of cases we are discussing, the mandatory sentence we are discussing can be justified, especially as it is very carefully worded with appropriate provision for justice.
However, all this is only part of the story. None of it is any use unless we have proper sentence planning and proper offender management. Proper sentence planning is virtually impossible under the indeterminate sentences for public protection system, especially for those on shorter terms. People have not been completing the courses that they need to have completed to satisfy the Parole Board that they could be released. That system is untenable. We need effective sentence planning—and more determinate sentences are a better way of achieving that. We need proper offender management for offenders who are eventually going to leave prison. The Justice Committee has regularly stressed that the concept of offender management needs to include proper control. It should not be a system in which people are handed from one agency to another without a continuous process of supervision.
The trouble with the procedure in the new clause is that we do not have the opportunity to probe the details by tabling a probing amendment. I asked the Lord Chancellor earlier about new clause 34. I think that it is well intentioned in that it is an attempt to deal with existing indeterminate public protection prisoners, but I am bound to question it because it gives to the Executive the power to direct the Parole Board on what should be done with an individual. That is a direction to a court—there have been court cases that have ruled that the Parole Board must be regarded as a court. So it is an odd way of proceeding and one that we might have amended in Committee had we been able to consider the measure. If there is an opportunity, I hope that I can hear a little more about why the measure has been introduced as a new clause tonight.
Mr Straw
I endorse the remarks of my right hon. Friend the Member for Tooting (Sadiq Khan) and the hon. Member for Shipley (Philip Davies). The hon. Member for Shipley, addressing the Lord Chancellor and his hon. Friends, said that the measure would lead to a number of dangerous offenders coming out of prison before it was correct to let them out. That, of course, is one of the key drivers of this policy. It is not about prison reform. The whole purpose of the measures put before the House last December was to cut the prison population by 6,500. The Lord Chancellor then ran into huge difficulties because he could not get his own side, our side or the judges to accept the 50% tariff for an early guilty plea and many other changes. I do not know the number exactly, but I do know that The Times quoted a Ministry of Justice spokesperson last Friday as saying that the changes would lead to a cut in the prison population of 2,500.
The Secretary of State seemed to want to have it both ways. He damned the concept of the indeterminate sentence for public protection and suggested that it was a stain on the system. He also tried to reassure the House and the public by saying, “Don’t worry, we are going to do exactly the same thing, but it is going to be called a mandatory life sentence.”
Mr Kenneth Clarke
May I correct the right hon. Gentleman? The impact statement will show the Bill as amended. Other things being equal, with no changes in the crime level—which depends far more on how long a recession we have, the levels of youth unemployment, how successful we are in dealing with drugs and how far we get with prison reform—the Bill will reduce the prison population by 2,300. The measure we are now debating will have no effect on the prison population in the period to 2015. The reduction in the prison population is achieved by measures already discussed and approved in the Public Bill Committee.
Mr Straw
It would have been helpful to have the impact statement before the House today rather than tomorrow. If the right hon. and learned Gentleman is saying—picking up the point made by the hon. Member for Shipley—that no prisoner who cannot be released until he has proved that he is not a danger to the public will not be released in the future, what on earth are these convoluted changes for?
The original design of the legislation in 2003 was unsatisfactory because it led in some cases to tariffs that were ludicrously short—in one case, 27 days. That was never the intention of my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) and it was causing a major problem. I, with the approval of the House, sought to change the law. It is worth Government Members remembering, as my right hon. Friend the Member for Tooting pointed out, that we got no assistance whatever from the Conservative Opposition at the time. Their complaint was that we were going soft by introducing this change. It was absolutely extraordinary. I do not remember the right hon. and learned Member for Rushcliffe (Mr Clarke), now the Lord Chancellor, standing up either in the House or outside suggesting that there was an alternative. We made that change and, interestingly and wholly contrary to what was said, it has led to a stabilisation of the numbers on indeterminate public protection sentences. According to the Lord Chancellor’s statistical bulletin, in the most recent year the number of such sentences rose by only 3% over the previous year and the number of those receiving IPP sentences was 958 for the year ending March 2011, compared to one short of 1,000 for the year ending March 2010. The changes that were introduced are working.
Yes, it is right that we should look in more detail at the Northern Ireland experience to see what other changes can be made, but it is entirely wrong for the Secretary of State to try to set up a new system that will lead either to the release of dangerous people who are serious and persistent offenders, thousands of whom are in prison for violent offences and sexual offences—in the main—or make no difference at all.
Mr Geoffrey Cox (Torridge and West Devon) (Con)
Will the right hon. Gentleman give way?
Mr Straw
If the hon. and learned Gentleman will excuse me, I will not.
The Lord Chancellor has been anxious to please the whole prison reform lobby—people who, bluntly, do not speak for the public, and rarely speak for the victims either in my experience, but even they will not be satisfied. Meanwhile, the public and innocent victims will be put at risk.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. May we have brevity? We want to hear as many speakers as possible.
Guy Opperman (Hexham) (Con)
I declare an interest as a former barrister and a former criminal prosecutor, who has worked on several murder trials.
I assure my hon. Friend the Member for Shipley (Philip Davies) that I am not soft on crime, but I support the Government in their reform of this untenable, shocking and wrong system. With great respect to the right hon. Member for Blackburn (Mr Straw), he should hang his head in shame for being party to the Criminal Justice Act 2003 and the Criminal Justice and Immigration Act 2008, both of which were useless pieces of legislation that introduced something that the Prison Reform Trust, the Institute for Criminal Policy Research, the Nuffield Foundation and the criminal justice joint inspectorate described as
“one of the least carefully planned and implemented pieces of legislation in the history of British sentencing.”
The flip-flops of the shadow Justice Secretary would put a kangaroo to shame. It is entirely right to reform a system that was underfunded, worked poorly and is manifestly wrong in the circumstances of a 21st-century country. I will speak only briefly but I remind the right hon. Member for Blackburn of the comments in the House of Lords on the 2003 and 2008 Acts, when the Lords addressed IPPs in the cases of the Crown v. James and the Crown v. Lee. In a decision that effectively lambasted the then Secretary of State, Lord Hope of Craighead said:
“There is no doubt that the Secretary of State failed deplorably in the public law duty…He failed to provide the systems and resources that prisoners serving those sentences needed to demonstrate to the Parole Board by the time of the expiry of their tariff periods…that it was no longer necessary for the protection of the public that they should remain in detention.”
I could go on to quote from the judgments of Lord Carswell and Lord Brown of Eaton-under-Heywood, but I shall pause there.
I have made it clear that I am not soft on crime, as others have suggested. The debate has sadly been too short, but the new clause should certainly be supported by the House.
Paul Goggins (Wythenshawe and Sale East) (Lab)
I share the concerns expressed by hon. and right hon. Members on both sides of the House, but I am grateful to the Lord Chancellor for the meeting he and his ministerial colleague held with my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) and I. I am also grateful for the Lord Chancellor’s assurance earlier that he would still be thinking hard about the provisions as they go from this place to the House of Lords.
I want again to assert briefly that the Northern Ireland experience was instructive, and if the Lord Chancellor was prepared to reflect on it, it would strengthen the flawed prospectus he has given us. The experience in Northern Ireland was based on a tragic case involving Trevor Hamilton, who murdered Attracta Harron when she was on her way home from mass in December 2003. My right hon. Friend the Member for Delyn (Mr Hanson) remembers the case well because he dealt with the issues too. Hamilton had been released at the halfway point of a seven-year sentence for rape, indecent assault and threats to kill. The public were outraged that such a dangerous individual could be released with no control whatever by the public authorities.
The framework in Northern Ireland is based on two key principles. The first is absolute judicial discretion, with no presumptions about previous offences, such as there were in the 2003 Act—so complete judicial discretion. Secondly, judges have to go through a very clear process. Does the offence justify a life sentence? If it does, that is what the offender gets. If it does not, the judge must consider an extended sentence, which can give some degree of control over the release date, but the offender must eventually be released at the end of the extended custodial period. If that is not sufficient for public protection, only then can the judge give an indeterminate sentence.
The result is instructive. The Northern Ireland Justice Minister, David Ford, has sent us a report, for which I commend him—the report should be put in the Library. There has been no significant change in the number of life sentence prisoners. There have been 68 extended sentences and eight indeterminate sentences in three and a half years. That system is in control and it offers the public protection.
There are real risks with what the Lord Chancellor is proposing. If he is right and judges suddenly start to impose more life sentences, he will simply have replaced one problem with what he described as the original problem. He will have replaced indeterminate sentences with life sentences, which will bring all the issues relating to resources and parole that he faces currently. The most serious thing is that under his proposals all dangerous offenders not given a life sentence will have a definite date for release, which is a risk too far for this or any Government to take. It will leave a gap, bridged in Northern Ireland by the indeterminate sentence not as a first or a second option but as a complementary third option.
I am glad that the Lord Chancellor is listening. I hope he heeds that lesson and that when he takes his legislation to the other place he will make further amendments.
Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)
I am in favour of the Government’s decision to scrap IPP sentences in this instance. Liberty, among others, has said that IPPs could be a back-door measure to introduce life sentences for a huge range of offences. They were intended to be given only sparingly but of course they have been used far more frequently than expected. In March 2011, there were 6,550 IPP prisoners, half of whom served 240 days beyond their tariff, at a cost to the Exchequer of about £68 million. That is quite apart from the whole question of whether they were being held unlawfully, which worries many of us.
As it stands, the IPP regime has been a costly mistake. Furthermore, the indefinite legal limbo created by IPP sentences has in many instances undermined rehabilitation, leaving prisoners and their families uncertain when, if ever, release will be granted. Like the Lord Chancellor, I wonder why those sentences have not been challenged in the courts. I have campaigned on the matter for a long time. In February, I introduced a ten-minute rule Bill seeking the abolition of IPP sentences, so I am pleased about the Government’s decision.
New clause 32 would mean that prisoners serving an extended sentence of at least four years in custody, who have a prior conviction for one in a list of serious offences, will be required to serve two thirds of their sentence, instead of being considered for release at the halfway point. I argued for such a provision when I introduced my Bill, so I am pleased that it has been introduced. However, like the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith), I have concerns about new clause 34. I have grave concerns about interference in individual parole decisions. That proposal must be looked at in the other place. We do not have time to debate it properly today and I am sure that many Members, whatever their views, would have appreciated a sensible timetable.
Mr Kenneth Clarke
I shall correspond with the right hon. Gentleman and the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith). The new clause was tabled at my request so that we can contemplate changing the test for release by statutory instrument. I shall explore whether it gives rise to the problems described. I certainly have no intention at the moment of intervening in individual cases and making judgments about IPP prisoners.
Mr Llwyd
That is certainly reassuring, but had we had a decent amount of time to discuss the proposals we could have probed them earlier. There is also some confusion about new clause 33, which will no doubt be picked up in the other place.
I know that I have done nothing for my street credibility, and even less for the Lord Chancellor’s, but I believe that the IPP system has been brought into disrepute. It is only right that we do away with it, and to that extent I agree with what the Government seek to do.
Mr Robert Buckland (South Swindon) (Con)
I shall be brief. I support the Government’s amendments. We need a system that does not try to predict risk, but sentences according to the seriousness of the offence. The right hon. Member for Wythenshawe and Sale East (Paul Goggins) made some very interesting points that deserve consideration, but now is the time for change. The current system is not sustainable. We are not dealing with the risk that these people pose and a system of determinate long sentences would be a far better service to the victims of crime, who are too often left in the dark about what happens in cases—
The Parliamentary Under-Secretary of State for Justice (Mr Jonathan Djanogly)
I beg to move, That the clause be read a Second time.
Mr Deputy Speaker (Mr Lindsay Hoyle)
With this it will be convenient to discuss the following: Amendment (a), after first ‘paid’ in (1)(a), insert
‘will be paid, has made an agreement to be paid,’.
Amendment (b), after ‘pays’ in (1)(b), insert
‘will pay, has made an agreement to pay’.
Amendment (c), after first ‘paid’ in (2)(b), insert
‘will be paid, has made an agreement to be paid,’.
Amendment (e), at end of (4)(b), insert—
‘(2A) A breach of the provisions of this section shall be an offence, punishable on summary conviction by a fine not exceeding the statutory maximum or on indictment for a term of imprisonment not exceeding two years, or a fine, or both.’.
Government new clause 19—Effect of the rules against referral fees—
‘(1) The relevant regulator must ensure that it has appropriate arrangements for monitoring and enforcing the restrictions imposed on regulated persons by section [Rules against referral fees].
(2) A regulator may make rules for the purposes of subsection (1).
(3) The rules may in particular provide for the relevant regulator to exercise in relation to anything done in breach of that section any powers (subject to subsections (5) and (6)) that the regulator would have in relation to anything done by the regulated person in breach of another restriction.
(4) Where the relevant regulator is the Financial Services Authority, section [Regulation by the FSA] applies instead of subsections (1) to (3) (and (7) to (9)).
(5) A breach of section [Rules against referral fees]—
(a) does not make a person guilty of an offence, and
(b) does not give rise to a right of action for breach of statutory duty.
(6) A breach of section [Rules against referral fees] does not make anything void or unenforceable, but a contract to make or pay for a referral or arrangement in breach of that section is unenforceable.
(7) Subsection (8) applies in a case where—
(a) a referral of prescribed legal business has been made by or to a regulated person, or
(b) a regulated person has made an arrangement as mentioned in section [Rules against referral fees](2)(a),
and it appears to the regulator that a payment made to or by the regulated person may be a payment for the referral or for making the arrangement (a “referral fee”).
(8) Rules under subsection (2) may provide for the payment to be treated as a referral fee unless the regulated person shows that the payment was made—
(a) as consideration for the provision of services, or
(b) for another reason,
and not as a referral fee.
(9) For the purposes of provision made by virtue of subsection (8) a payment that would otherwise be regarded as consideration for the provision of services of any description may be treated as a referral fee if it exceeds the amount specified in relation to services of that description in regulations made by the Lord Chancellor.’.
Amendment (a) to new clause 19, leave out subsection 5.
Amendment (b), leave out from ‘services’ in (8)(a) to end of paragraph (b) and insert
‘but only where the consideration was proportionate and reasonable in the circumstances.’.
Government new clause 20—Regulation by the FSA.
Government new clause 21—Regulators and regulated persons.
Government new clause 22—Referral fees: regulations.
Government amendment 139.
Mr Djanogly
New clauses 18 to 22 seek to prohibit the payment and receipt of referral fees in personal injury cases by regulated persons, namely solicitors, barristers, claim management companies and insurers.
I pay tribute at the outset to the work of the right hon. Member for Blackburn (Mr Straw) in pursuing the case for a ban on referral fees. I know that there are some differences between us about the detail of how we should implement the ban—we will come to his amendments in due course—but those differences of detail should not obscure our agreement in principle on tackling this important issue. I acknowledge his efforts in this regard.
I must also mention the consistent campaign by the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) as Chair of the Justice Committee, who has also been a very keen supporter of the ban. I note that last week his Committee formally welcomed our commitment to the ban, which will be implemented by these clauses. I should also acknowledge the work of the Transport Committee, chaired by the hon. Member for Liverpool, Riverside (Mrs Ellman), before whom I was privileged to appear last month.
My right hon. and learned Friend the Secretary of State for Justice announced the Government’s intention to ban the payment and receipt of referral fees in personal injury cases by way of a written ministerial statement to the House on 9 September 2011.
I strongly believe that the current arrangements under which lawyers and others are able to pay and receive fees for referring work have led to both higher costs and the growth of an industry that pursues claimants for profit. By introducing the new clause, the Government are taking decisive and much needed action to remove these incentives.
Right hon. and hon. Members will be aware that Lord Justice Jackson recommended that referral fees should be banned as part of his comprehensive package of recommendations to make the costs of the civil litigation more proportionate and this recommendation was echoed by Lord Young in his report “Common Sense Common Safety”. The Bill already includes provisions to implement the other key elements of those recommendations. The referral fees ban under our new clause will complement the wider Jackson reform already in the Bill by further reducing the costs of personal injury litigation and deterring frivolous or unnecessary claims from being pursued in the courts.
The new clause creates a regulatory offence for any breach of the prohibition. It will be for the appropriate regulators, for example the Law Society, the Financial Services Authority or the claims management regulator, to enforce the prohibition. The regulators will also be responsible for taking appropriate action against regulated persons for any breaches. We have thought carefully about how to ensure that all the main players, including insurers, are captured by the ban, which is why there is a separate clause, new clause 20, giving the Treasury powers to make regulations allowing the FSA to enforce the ban under its existing regulatory powers.
There have been calls from some people, but not most people, for the payment and receipt of referral fees to be made a criminal offence. Not least among those who have called for that is the right hon. Member for Blackburn, who has tabled amendment (e) to that effect. We considered the matter carefully but believe that creating a criminal offence would be a very blunt instrument in this case. One would have to prove beyond reasonable doubt that consideration had changed hands for the referral of a potential claimant, but the grounds for determining whether something was or was not a referral fee could be blurred. It would be very difficult to convict in many cases on the basis of the complexity of those arrangements. That is why we consider a regulatory offence to be more appropriate, whereby the principle of what is happening can be looked at by the regulator and a view can be taken.
I am conscious that a criminal offence would impose additional costs on the police and the courts in investigating and enforcing a ban. I believe that a regulatory prohibition covering all the main players in the sector, including lawyers, claims management companies and insurers, is the most appropriate and effective response to the issue. I am confident that the industry regulators are best placed to investigate and enforce the regulatory ban.
Sir Alan Beith
As my hon. Friend has indicated, I strongly support the action he is taking, but is it not the case that in many of those circumstances a criminal offence may well have been committed by way of a breach of the Data Protection Act 1998? The problem then is that custodial sentences are not available for someone who is doing that on a large scale and making a great deal of money by releasing personal information and committing a criminal offence.
Mr Djanogly
My right hon. Friend makes a good point. It is not one that is covered by the Bill, but it is something that the Government are looking into, and I hope that there will be further developments on that in due course.
Mr Straw
I thank the Minister for the generous compliment he paid me, for which I am most grateful. There are plenty of situations relating to financial institutions in the widest sense when conduct might be the subject of a regulatory breach enforced by the regulators, but in more severe cases it could also be a criminal offence. It is a matter of belt and braces. Frankly, I do not understand why he is suggesting that those are alternatives when one complements the other.
Mr Djanogly
The reason is that criminalisation would be too blunt an instrument. If we take the example of the straight payment of a fee for a referral, I can see how straight criminalisation would work, but we should appreciate that when that was last banned in 2004 it was a weak provision through which a coach and horses could be driven. What if an insurance company provides insurance to a solicitor in payment for referrals, rather than a straight fee? What if a trade union gives its cheap work to a firm of solicitors in consideration for the solicitors getting its better work? What if a claims management company provides a variety of services to a solicitor in payment for a referral? The point I am making is that the circumstances could be very varied and complex and the straight criminal option would not be appropriate. It would be the principle that counts and it would have to be a regulator that looks to the principle.
We are primarily concerned with removing incentives under the current system with regard to personal injury claims, which is why we are banning referral fees in that area. However, the Lord Chancellor may in future extend by regulation the prohibition on referral fees to other types of claim and legal services and other providers of legal services should the need arise and if the case is made for such an extension.
Kate Green
Is the Minister not concerned that that might introduce an element of uncertainty? Although I note what he says about the possibility of extending the provisions to other structures in future, is he not aware that alternative business structures will now be set up by large companies to get around the provisions? How will he address that?
Mr Djanogly
Alternative business structures will be set up by the Solicitors Regulation Authority, probably before or just after the end of this year, so the hon. Lady makes an important point. At that stage, claims management companies will be able to purchase solicitors, and vice versa, which means that it would indeed be possible, as we discussed in the Transport Committee, for a claims management company to own a solicitor and effectively act as the advertising arm of a firm of solicitors. However, the important difference is that the claims management companies will then be regulated by the SRA, which will give consumers a significant amount of comfort.
Referral fees are one of the symptoms of the compensation culture in this country. The Government are determined to put an end to them while at the same time addressing the underlying cause of recoverability of no win, no fee success fees.
Mr Andy Slaughter (Hammersmith) (Lab)
Following what my right hon. Friend the shadow Secretary of State for Justice said earlier this afternoon, I rise to discuss proposals that have not been given due scrutiny in Parliament. We are all aware that the Government were bounced into taking action on referral fees only by the sustained campaigning by my right hon. Friend the Member for Blackburn (Mr Straw). In their haste to cover up their inaction and disregard of the abuses of the insurance industry, they have failed to consult on their proposals, which are incompetent, ineffective and will lead to problems further down the line. Indeed, it was reported this week that a judicial review has already been launched citing that lack of consultation.
Referral fees are paid by one party to another in exchange for what are essentially sale leads. They are analogous to brokers’ fees, commission for salespeople, marketing agreements or, in the most basic sense, advertising, because each of these represents part of the cost of sales. Every non-monopolistic industry has a cost of sales. Let me take the example of the insurance industry, an industry with which the Minister has more than a passing familiarity. Admiral is the UK’s leading specialist motor insurance company. Last year it received net insurance premium revenue of £288 million, but its total net revenue was £639 million, part of which was made with referral fees. It spent £151 million on the acquisition of insurance contracts and other marketing costs, including brokers’ costs, paying insurance websites and expensive advertising. Those costs drive up premium costs and the desire to make profit also drives up premium prices—Admiral made £283 million in profit last year on its net revenue of £639 million. That is how it works in the insurance industry.
It works in a similar way when law firms pay independent brokers, some of which are known as claims management companies, another area with which the Minister has more than a passing familiarity. They will pay referral fees in order to get leads for their practice. The lawyers often do this because, frankly, they are not very good at sales, marketing or advertising. However, the problems arise in the behaviour that that encourages. Although there are reputable and decent claims management companies out there that bring together those who want help with those who can provide it, there are also many claims farmers, often based overseas, that abuse the system, send unsolicited spam to people’s e-mail accounts and mobile phones and abuse their data.
It is right to deal with people who act in such a way, but the claims management regulator, which until a few weeks ago was the Minister, but which I understand is now the Secretary of State, has proven singularly unable to do so. An internal review of claims management regulation from the Ministry of Justice, dated 25 October 2011—just last week—states:
“It is evident that many of the more objectionable practices of Claims Management Companies such as cold calling in person, unauthorised marketing in hospitals and using exaggerated marketing claims have been reined in as a result of action taken under CMR.”
Nothing could make clearer what delusions have set in with claims management regulated by the Minister, because we all know from personal experience that the opposite is true and that such abuse is still out there at large and, if anything, is increasing. Our constituents are harassed by claims farmers, and their objectionable messages, but the Department that he has mismanaged for the past year and a half believes it is doing an excellent job. That is why we must take corrective action.
Mr Kevan Jones (North Durham) (Lab)
I note what my hon. Friend is saying about the claims regulatory authority, but my experience at the tail end of the miners compensation scheme was that it was effective in driving out of the industry some of the more unscrupulous claims management companies, which were often just front companies that wound up as soon as they had passed the claims on. I caution my hon. Friend not to be too harsh on it.
Mr Slaughter
I am grateful for my hon. Friend’s intervention. I am sure that some companies have been driven out of business, but the everyday experience of hon. Members, and certainly of our constituents, is that the industry is not properly regulated, which is why corrective action must be taken. However, the proposals in the Government’s new clauses are, I fear, insufficient. They are riddled with inconsistencies and loopholes, which is another symptom of the haste with which they were prepared.
I will deal with the point that the Minister dealt with. New clause 19(8) states that a payment is
“to be treated as a referral fee unless”
it can be shown
“that the payment was made…as consideration for the provision of services, or…for another reason”.
The Minister’s impact assessment explains what that means. Claims management companies may adapt their business models so that they are not reliant on referral fees paid by lawyers, or they may move into alternative types of business such as marketing or advertising. That is staggering to those of us who recognise that it is precisely that marketing and advertising, whether on daytime TV adverts or via spam messages, that lead to perceptions of a compensation culture.
What is the point of the new clauses? The truth is that they are an afterthought to a package of changes in the Bill, some of which we will debate tomorrow, that have far more bite but a different purpose. The changes to conditional fee agreements mean that losing defendants—wrongdoers—and their insurers will benefit at the expense of winning claimants—victims—and that is the real objective of the Government’s legislation. Tomorrow, we will seek to overturn those provisions.
As Bob and Sally Dowler have told us; as the lawyers that brought Trafigura to justice have told us; as victims of asbestosis, who have been fighting insurers that simply do not want to pay out to hard-working and long-suffering people; as those who have been unfairly dismissed or subject to harassment in the workplace have told us; and as Christopher Jeffries, who was persecuted by the media last Christmas, as he wrote in The Guardian this very day, has told us, the changes are unacceptable. The Government’s proposed changes, which they had thought about and on which they had taken instructions from the insurance industry, are in the Bill, but very little thought has gone into the new clauses before us today, and none would have gone into them had it not been for my right hon. Friend the Member for Blackburn.
In summary, we believe that there is merit in a ban on referral fees as part of a package to stop the abuses that I have talked about. That is why I tabled amendments not just to clamp down on those fees, but to make the payment and solicitation of referral fees in road traffic accident personal injury cases a criminal offence. My right hon. Friend has tabled amendments to new clause 18, and I hope that he will press them to a vote. If he does so, I hope that hon. Members on both sides of the House will join him in the Lobby if the Government still refuse to accept the criminalisation of referral fees.
We sought to make unsolicited text messages and phone calls regarding personal injuries a criminal offence. We would have strengthened the rules against the sale of personal data. We would have restricted whiplash claims by placing a lower limit on the speed at which a vehicle must be travelling before damages may be paid. We would have outlawed third-party capture, another dirty secret of the insurance industry. I freely acknowledge that we plagiarised some of that from my right hon. Friend’s private Member’s Bill.
If the Government had had the courage of the conviction in the Minister’s speeches earlier in the year, we would have got to the heart of the perception of a compensation culture. In doing so, we would have done what the Government are now failing to do. The new clause alone will have little effect. We believe that it deserves further scrutiny, and we hope that amendments in another place will toughen it up, if that does not happen tonight. We also hope that amendments to make these practices criminal offences will be accepted. We therefore have no intention of voting against the new clauses; we simply regard them as not going far enough.
The Minister’s incompetence in getting to grips with claims farmers who engage in unscrupulous practices and his Department’s failure even to recognise the scale of their failure to regulate effectively have got us here. These are symptoms not of a litigation culture, as he would have us believe, and of the rhetoric that goes along with the cuts in legal aid to the poorest, as well the neutering of no win, no fee agreements which will affect almost everyone except the super-rich and will prevent access to justice, but of regulatory incompetence by the Minister’s Department. Indeed, he has now surrendered responsibility for that regulation.
I commend my right hon. Friend’s amendments to the House. We accept the new clauses as far as they go, but it is about time the Government stopped using their rhetoric as a mask for preventing victims from obtaining justice and used it to ensure that the abuses that we all put up with day to day from fraudulent and criminal practices are stamped out.
Tom Brake (Carshalton and Wallington) (LD)
I shall be brief. I welcome the Government’s action to address referral fees. There is no doubt that consumers have paid a significant price. I hope that we can clamp down heavily on other things, such as unsolicited text messages and spam, which we have all experienced, through other measures such as those on data protection.
I would like the Minister to deal with just one point. The industry has been pressing for these changes, and consumers in particular want to understand what guarantees, if any, they will have that when the changes have taken effect they will see a difference in the prices they pay for services.
Mr Straw
As a preliminary, I wish to draw the House’s attention to the fact that against my name on the amendments relating to referral fees there is an R, which indicates that I have a declarable interest. It arises from three engagements that I undertook for fees on matters relating to referral fees and the motor insurance industry generally. They were on 28 September, 12 October, and earlier today. In respect of the first two, I have made a declaration to the Registrar of Members’ Financial Interests, who told me that because I have not yet received payment, the time for these is not yet running. The declaration for my engagement this morning will be made tomorrow.
I tabled amendments to new clauses 18 and 19 and, as my hon. Friend the Member for Hammersmith (Mr Slaughter) indicated, in the absence of a sudden Pauline conversion from the Government Front Bench between now and when the question is put, I shall press amendment (e) to new clause 18 to a vote.
According to the AA, over the year to March 2011, there has been a 40% increase in motor insurance premiums. In many areas of the country, mine included, although it is by no means the worst, the increase has been even higher. As a number of colleagues of all parties have pointed out, that has very severe social consequences.
May I say that I am extremely grateful for the wide support that my Motor Insurance Regulation Bill has had throughout the Chamber? Motor insurance is the only insurance affecting an individual that is compulsory, and in certain areas and for certain categories, particularly younger drivers, premiums are now so high as to place motor insurance out of reach altogether. A driving licence is often a necessary qualification for taking a job. In any case, people in areas that are not blessed with a high level of public transport, which means most places outside inner urban areas, need a motor vehicle to go about their business. The increase in premiums, and the fact that they are much higher in some areas than others, is leading to some people not being able to work or move around.
The increase is also unquestionably leading to an increase in criminality, both through people going around uninsured and, increasingly, through people deciding to borrow a friend’s address with a lower-premium postcode. People also fail to disclose relevant information about themselves, to enable them to become insured. It cannot serve any public purpose that we have ended up with such a dysfunctional system.
I readily concede that that has happened because of a nexus of factors going back a number of years. The operation of the conditional fee system was introduced in the Access to Justice Act 1999 for good a reason: it was thought that it would improve access to justice. To some extent that has certainly been true, but as we all know, it has had the unintended consequence of generally —I am not talking the Trafigura case or one or two others—creating an imbalance in the equality of arms between parties on either side of a legal action. It has gratuitously encouraged the so-called compensation culture.
That, in turn, has been compounded by the costs of the road traffic accident electronic portal being too high. In a recent statement, the Minister said that the figure that was introduced when I was Secretary of State had been agreed in the Civil Justice Council. It was agreed to by both sides, which was why I did not interfere with it. I believe there is now widespread agreement that the current fee, of at least £1,200 for claims under £10,000, is at least twice as high as it should be. It is leading to lawyers advertising as two firms at the end of my street in Blackburn do: they have great banners across their windows saying, “Bring your claim in here, we’ll pay you up to £650 in cash for it.” They can do that and still make a profit out of the £1,200, because the actual costs of running the portal are about £100.
Claims for whiplash, which I have described as an invention of the human imagination, undiagnosable except by dodgy doctors employed by claims management companies, have got completely out of control. The level of whiplash claims is not related to the level of accidents or physical injuries. Accidents are reducing, as is the possibility of being injured in an accident, because cars and road engineering are much safer. It is related principally to the density of claims management companies operating in a particular area. The evidence of that is incontrovertible.
I concede to my hon. Friend the Member for North Durham (Mr Jones) that the regulators have acted properly on claims management companies in some ways, but the regulatory system established under the Compensation Act 2006, during our Administration, has not had sufficient resources to control the trebling in the number of claims management companies that has taken place in recent years.
Another change that took place was in the 2004 solicitors conduct rules, which allowed solicitors to pay referral fees that were previously banned. I will come back to that point when we deal with the enforcement of a ban on referral fees.
Sir Alan Beith
I very much welcome all the effort that the right hon. Gentleman has put into this matter. I hope that in talking about referral fees, he will recognise that although he has devoted a lot of his effort to motor insurance, the same problems affect the cost to consumers in numerous other areas, such as employment law, conveyancing and divorce—all areas in which quite large sums change hands.
Mr Straw
I absolutely agree. I began this journey because of constituents’ concerns about motor insurance, and my private Member’s Bill specifically concentrates on that, but I accept entirely what the right hon. Gentleman has been saying for such a long time and what his Justice Committee said in the report that it published two weeks ago—that the ban on referral fees must be extended beyond personal injury cases.
Jonathan Evans (Cardiff North) (Con)
I am anxious for the right hon. Gentleman to reflect on his point about the change in the solicitors rules in 2004. It is important that the House considers the fact that up until that time, referral fees were banned by the Law Society. It was the intervention of the Office of Fair Trading that resulted in the Law Society changing that rule and recommending the creation of a marketplace, which he has rightly described as later becoming a full-scale scam.
Mr Straw
I said earlier today outside the House that I believe the reason why the OFT has decided rather late in the day to hold an investigation into market conditions in the motor insurance industry is that it is deeply embarrassed by the position that it took in 2004. In no sense could it be said that referral fees encourage fair trading. They are essentially a fraud on the consumer. Lord Justice Jackson, in his magisterial report, completely demolished the OFT’s case in favour of referral fees.
The other body that should examine its processes is the Legal Services Board. I accept readily the reason why the Secretary of State felt obliged to wait for its consideration of referral fees, but its consumer panel released the most extraordinary report stating that referral fees worked in the public interest. If we examine the basis of its research, we find that a third of the people whom it surveyed had received compensation for things like whiplash.
On any objective consumer evidence, and there is plenty of it, it is perfectly plain that the public collectively do not like what they are learning about how the wider insurance industry operates. They reckon they are being defrauded, and that is absolutely true. In motor insurance, for example, a conservative estimate is that at least £2 billion of the total premium income of £9 billion is additional costs caused by the merry-go-round of referral fees.
Mr Kevan Jones
My right hon. Friend is correct that in 2004, referral fees were put on a legal footing. However, many years before that it was quite clear that referral fees were being paid in various guises. My hon. Friend the Member for Bassetlaw (John Mann) and I raised the scandal that was going on in the miners’ compensation scheme. When we were arguing for that practice to be banned, the Government of the time did not do a great deal about it.
Mr Straw
The Government should have done, and as I have sometimes said in respect of that period, my alibi is that I was abroad. I am the last to suggest that the problem has been created by the current Government. I accept that although the Labour Government did many wonderful things, the consequence of a number of things, some of which we introduced and some of which, such as the OFT report, were forced on us, has been the creation of a dysfunctional system.
Mr Jones
The fact that this has become an issue for middle England is quite ironic, but I am angry that when my hon. Friend the Member for Bassetlaw and I raised it in respect of poor mining communities, people did not think it was a great priority. Does my right hon. Friend agree that it is ironic that if we had tackled the problem at that time, the scandals in the motor industry that he has outlined would have been put to bed years ago?
Mr Straw
That might be so—it is good to know that my constituency is representative of middle England.
Similarly unacceptable practices take place in motor repairs. In bottom-line referrals, accident management companies require repairers to give them a discount of up to 25%. The repairers then increase their prices to take account of that bottom-line referral fee. Royal and Sun Alliance outrageously practised a type of subrogation whereby it set up an internal subsidiary, which contracted repairers for, say, £1,000 for a repair, and then added 25%, which was charged to the main company—RSA Ltd—which then charged the at-fault insurer. Product mandating is another unacceptable practice. Deals are struck with, for example, paint manufacturers, and repair companies are required to use specific brands of paint. That has led to a 67% increase in the cost of paint since 2003.
We must act on all those matters, and I hope the Minister will say briefly what will happen on the RTA portal if he gets the chance. I know that he has indicated that he hopes to take action, but is he sympathetic to what I suggest in respect of whiplash and many other matters?
I come now to the issue between the Minister and me. I welcome new clause 18, and I am grateful to the Secretary of State and the Minister for introducing it. However, for my hon. Friend the Member for North Durham (Mr Jones), the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith) and I, there are two issues. First, in my judgment, the breadth of the ban must go wider than personal injury claims. It could be excluded in one or two discrete areas, but in the generality of cases, as the right hon. Gentleman said—he has a great deal of experience—abuse also happens elsewhere.
Secondly, on the question of whether there should be a criminal offence, I noted what the hon. Member for Cardiff North (Jonathan Evans) and my hon. Friend the Member for North Durham said about what happened before 2004, and in a sense, they have made my point. My understanding is that the prohibition on solicitors charging referral fees was in the solicitors conduct rules and that it was not a criminal offence. Those rules changed; it was not that a criminal offence was abolished. I am glad that the Secretary of State proposes to make greater use of the regulatory authorities, and I would not for a moment suggest that that is unnecessary, because it is very necessary. However—this is where, with respect, I found his argument least convincing—there are many other areas of regulation, including, for example, of financial institutions, when conduct that is in clear breach of regulations leads to both a fine or penalty by civil regulatory authorities and a criminal offence. That is particularly true given the vicarious liability requirements imposed by section 7 and others of the Bribery Act 2011.
I applaud what the Secretary of State is doing as far as it goes, but for the life of me, I simply do not understand why, given that he recognises the inadequacy of the 2004 regulatory system and many other things, he does not back that with the criminal law.
Stephen Phillips (Sleaford and North Hykeham) (Con)
I refer the House to my entry in the Register of Members’ Financial Interests.
Given the right hon. Gentleman’s wide experience, can he detect any pattern in relation to those matters where an action by a regulated body constitutes something that could lead both to regulatory action by the regulator and to criminal sanction under the statutes? If so, it would be interesting to know which side of the line the new clause and the matters to which it refers lie.
Mr Straw
The hon. and learned Gentlemen may have noticed that I need to research that point, but I have in the back of my mind a number of cases where breaches of regulations are dealt with both by the regulator and in criminal proceedings. He is experienced in the law and will know that plenty of criminal offences are also civil wrongs of some kind in common law or by regulations.
Sir Alan Beith
The right hon. Gentleman has an arguable case on the merits of a back-up criminal offence, but will he concede that the system proposed by the Government can be made to work, because it combines the regulatory framework with the criminal offence behind it, particularly if there is a custodial sentence? The data protection offence, which lies behind the Government’s proposal, is already a criminal offence.
Mr Straw
Christopher Graham, the distinguished Information Commissioner, made the point that one reason why the penalty for breach of section 55 of the Data Protection Act needs to be increased—as it is by sections 77 and 78 of the Criminal Justice and Immigration Act 2008 to a maximum of two years imprisonment or an unlimited fine—is to send a message to people in those industries that they could end up in prison if they go in for an egregious breach. Of course, other breaches of data protection rules could mean that an organisation loses its licence, but in extremis, we need criminal proceedings for a criminal offence.
My view is that the same must apply in respect of breaches of the law banning referral fees. My amendment (e) would produce exactly the same penalty—it is entirely proportionate—as applies under sections 77 and 78 of the 2008 Act, which I hope the Government bring into force quickly given that they are already on the statute book. With that, and because I know that many others wish to speak, I thank Members on both sides of the House for the support that they have given to my campaign, and commend the amendment to the House.
Damian Hinds (East Hampshire) (Con)
It is a great pleasure to follow the right hon. Member for Blackburn (Mr Straw), who put his case so comprehensively and convincingly.
I should like to speak briefly in support of the Government’s position and to ask a question of clarification. Clearly, referral fees and how they work have contributed enormously to the insurance costs of people in Blackburn, East Hampshire, middle England—wherever that is—and everywhere else, and change is needed. We had a strange mini-debate in the Public Bill Committee evidence-taking session on whether there was a compensation culture in this country. Some Opposition Members suggested that there was not and cited the noble Lord Young of Graffham in defence of their case, which is rather a tricky one to argue. Anyone who has received those annoying automated phone calls and text messages, or who has even a glancing familiarity with daytime television, can say that it is intuitive and self-evident that there is a compensation culture.
I understand that one of the original reasons for introducing referral fees was to allow an online market to develop—it was said that that would be a good thing because it might increase competition and access to justice. I shall come back to the online market element in a moment, but the claim that referral fees improve access to justice is at best grossly exaggerated. It might well be that approaching a solicitor with such a case was foreboding 20 years ago, but it is not now, following the development of no win, no fee cases and so on.
It is difficult to say exactly how big the claims management company sector is, but it might be of the order of £0.5 billion, which is enormous. There is nothing wrong with making money, but from a public policy perspective, we must draw a distinction between activities that add value to the individual and those that just take a share of the value chain and ultimately push up costs for everybody else. That is combined with the natural distaste that we have for selling people’s cases as some kind of commodity. The hon. Member for Stretford and Urmston (Kate Green) referred to the ability of industry players to shape-shift. I think that the new clause would effectively prohibit subcontracting, but not, of course, mergers and acquisitions, which would simply create a new form.
Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)
I welcome tonight’s discussion about action on referral fees. In March, the Transport Committee produced a report in which we investigated the reasons for the 40% increase in premiums for private motor insurance. We identified referral fees as one of the reasons. The others included cold calling, inflated bills, high accident rates among young people, fraud and uninsured driving. However, I seek clarification on two areas from the Minister, although some of these points have been raised in earlier contributions.
The first issue is the scope of the Government’s proposals. The Committee’s report referred to the merry-go-round of referral fees and identified not only solicitors, but credit hire firms, vehicle repairers, medical experts and management accident firms. I am not clear from the Minister’s explanation of the new clause whether all, or some, of these organisations will be included in the proposals. If we are looking at referral fees as a reason for the greatly increased costs of motor insurance premiums, it is not good enough to look only at solicitors; we have to look at all these other areas as well.
The second area relates to how companies would be prevented from finding ways of avoiding the new legislation. When the Committee conducted its first inquiry on this issue, we received evidence that if referral fees were banned claims management companies would buy solicitors’ practices and, under the plans for alternative business structures, it could be normal for non-legally qualified individuals to do so. On the face of it, it seems that there would be an easy way of avoiding the legislation. I have not heard anything in detail about how that would be addressed. The Minister is correct that he was asked that question when he came before the Committee two weeks ago, but we received no clear explanation of how the issue would be addressed.
Those are the points that I wished to raise tonight. I know that I shall have other opportunities to look more broadly at the rising costs of motor insurance, but tonight, in this debate on action to be taken over referral fees, I ask for further explanation about how the Government’s proposals will deal with those two important points.
Bob Blackman (Harrow East) (Con)
I, fortunately, have not been the victim of a car crash or accident at work, although, judging from the volume of texts, e-mail messages and voice calls to my mobile and home phone one might believe that I was confined to a hospital bed or wheelchair. This is one of the aspects that have to be combated in legislation. I therefore support what the Government are doing in trying to prevent this type of activity, although I would like clarification from the Minister on three issues.
My hon. Friend the Member for East Hampshire (Damian Hinds) alluded to the first matter: the definition of “referral fee” and the potential for people to get around it. That is rather important, particularly given that it has been suggested that we make it a criminal offence. While the definition lacks clarity, it will be difficult to make it a criminal offence.
The second important issue is fairness for the individual. If a victim of an accident—for example, someone who has suffered a spinal injury—goes along to their high street solicitor for advice and help, the firm might decide to give that help and advice and start the case, but somewhere along the line it might determine that it does not have the expertise necessary and refer it to an expert solicitor who deals with nothing but such claims. How will the first solicitor be recompensed for their work, if they cannot claim a referral fee? I would like clarification on that point, because, quite clearly, that would require a great deal of professional work for which the solicitor might not receive any recompense. That needs to be clarified.
Mr Straw
Surely, the firm would get paid for the costs it had incurred. Indeed, it would not pass on the file until its costs had been paid. Does the hon. Gentleman accept that a further defect of referral fees is that they might skew the judgment of the first solicitor advising the client on the best firm to go to? The solicitor might make a decision on the basis not of which is the best firm, but of which is likely to pay the biggest referral fee.
Bob Blackman
The other problem is that if solicitors did not believe that they would get paid for the work, they might hang on to the case and take it to conclusion, despite not being an expert. That presents a huge risk to the individual, who possibly has a case.
Mr Slaughter
I agree entirely with my right hon. Friend the Member for Blackburn (Mr Straw). To put it slightly differently, the hon. Gentleman is quite right that firms might want to hang on to work even after it goes beyond their expertise, so an inducement to pass it on might work. I am not saying that in favour of referral fees, but it does happen, and we have to be aware of it.
He is absolutely right about the definition of referral fees. When the Minister announced, rather hastily, in response to my right hon. Friend, that the Government were banning them, he admitted that he could not define “referral fee”. The hon. Gentleman is absolutely right, therefore, that a number of problems still need to be resolved, but those are questions that he should be putting to his Front Bench team. He should be asking why they have not sorted out these matters, including on his point about text messages.
Bob Blackman
As I said, I hope to get clarity at the conclusion of the debate, because this is clearly a problem. I would like these illicit text messages and such like to be criminalised, because they are clearly an abuse of the law. Indeed, as my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith) said, they should be criminalised already under the Data Protection Act, because they constitute an abuse of personal data.
I seek clarity on a third issue: the effect on claims management companies of banning referral fees. I sought advice from Accident Advice Helpline, which is based in my constituency. It informs me that only one in six of its 36,000 cases last year were referred to solicitors, with the rest being screened out. Of those, 70% led to a settlement, with 15% dropped owing to “no involvement”. I could go through all the details of the data, but the reality is that Accident Advice Helpline screens the cases, which costs money. If Accident Advice Helpline does not do that, other solicitors will have to do it, at a cost to themselves. I would therefore like some clarity on what the effect will be and how it is proposed that those companies will be funded so that they do not fall foul of the regulations.
Kate Green
I, too, am keen to ask the Minister some questions, similar to those put by the hon. Member for Harrow East (Bob Blackman).
I completely share other hon. Members’ concerns about securing much better protection for the consumer, but given that the amendments have been introduced rather hastily I hope that the Minister will assure us that there will be a level playing field for different business types and, in particular, that access to independent legal advice from independent solicitors will be protected for claimants.
I therefore seek a fuller explanation from the Minister of how it is intended that referral fees will be defined. Specifically, to what extent does he see marketing activity by solicitors and others as covered—or not covered—by the provisions? For example, as has already been suggested, if a high street solicitor takes on some work, but realises that he or she does not have the expertise to pursue the case and therefore refers it to another solicitor and arranges some form of fee sharing, how is it intended that this should be treated under the provisions? Some solicitors have grouped together to pool their marketing budgets. Is the intention of the Minister’s amendments to outlaw pooled marketing completely or to cover it in regulation? It would be useful to have some clarification on that.
I welcome what the Minister said in answer to my earlier intervention about alternative business structures, but I am curious to know what his assessment is of the possibility that more and more large claims management companies will seek to handle all such business in-house and will stop using the services of other legal firms or legal experts. Has he made any assessment of the possibility of the provision of such services being concentrated in a way that reduces consumer choice and independent advice, and will he say what steps he might take to address that?
Mr Kevan Jones
I welcome the banning of referral fees, and I congratulate the Minister and the Government on doing it. The scandal is that, frankly, it should have been done years ago. My hon. Friend the Member for Bassetlaw (John Mann) and I campaigned hard to expose the scandal surrounding the miners compensation scheme, which created a feeding frenzy not just for solicitors but for claims management companies. As I have said before—and to answer the hon. Member for Harrow East (Bob Blackman)—I frankly do not care if they all go bust, because they are not needed in this process. If people need legal advice, they go to a solicitor. Claims management companies have acted like parasites on the access to justice model that we have had in this country for many years.
I find it ironic that my right hon. Friend the Member for Blackburn (Mr Straw) said that I was referring to Blackburn as a middle-England constituency, because I was not. The fact of the matter is that my hon. Friend the Member for Bassetlaw and I, along with one or two other Members, argued hard about the scandal surrounding the miners compensation scheme. One of the key points was referral fees and the amount of money received not only by solicitors but by unscrupulous trade unions and unscrupulous claims handling companies. The issue was regulated in 2004, with referral fees being made legal. However, in the case of the miners compensation scheme it was quite obvious that referral fees were being paid and that the Law Society was turning a blind eye—I always refer to the Law Society as the best trade union in the world, because it does such a good job of protecting its self-interest.
Sir Alan Beith
Like the hon. Member for North Durham (Mr Jones), I had coal mines in my constituency. There were three working mines there, and I saw evidence of the scandal that he described. It was absolutely dreadful in many ways. Today, I want to ask for clarification of the Government’s intentions in two areas. One relates to the broadening of this issue beyond personal injury. New clause 18 provides for the Lord Chancellor to make regulations specifying wider ranges of legal businesses. I hope that there is a clear intention on the Government’s part, probably involving consultation, to move on to all the sectors in which referral fees have the potential to distort or damage competition or to undermine the position of the consumer. I would like a clear indication that the Government are going to examine a number of other areas.
Secondly, the Minister was very helpful earlier on the question of custodial sentences for breaches of the Data Protection Act, and I hope that that means that the Government have moved on from their position of saying, “We’ll have to wait until the end of the Leveson inquiry.” That represented a complete misunderstanding of the situation. The question of custodial sentences for data protection offences is not primarily about the issues that have been raised in the Leveson inquiry about the media; it is about the everyday circumstances of our constituents whose personal information is abused by the organisations that hold it. That matter ought not to have to wait until the completion of an inquiry into a wider range of issues. I hope that the Minister’s earlier helpfulness will be repeated in implementing a measure on which the House has already decided—namely, that there should be a custodial penalty in such cases.
Mr Djanogly
We have had a good, far-ranging debate this afternoon. Given that another important debate needs to be completed by 8 o’clock, I am sorry to say that I shall have to make my way quickly through the points that have been raised. I am pleased to hear at least a grudging agreement in principle with our ban on referral fees from the hon. Member for Hammersmith (Mr Slaughter). I thank my right hon. Friend the Member for Carshalton and Wallington (Tom Brake) and all the other right hon. and hon. Members for their support for our desire to implement the ban. I am pleased that the debate today has been about how that should be done, not about whether it should be done.
The hon. Member for Hammersmith asked why we had not consulted on banning referral fees, and I can tell him that Lord Justice Jackson made 109 recommendations, and it would not have been practical to consult on them all at once. It also made good sense to await the outcome of the Legal Services Board’s work in this area. Many respondents to our consultation on implementing Lord Justice Jackson’s recommendations included their views on referral fees. Those views, along with the work undertaken by the LSB and the Transport Committee, have been carefully considered. The hon. Gentleman clearly raised some serious issues relating to the regulation of claims management companies, but they were not directly relevant to the Bill. I must point out that, in the past year, the Ministry of Justice has cancelled 349 authorisations of CMCs, whereas in the last year of the Labour Government, it cancelled only 35.
The hon. Member for North Durham (Mr Jones) asked a number of important questions. If he does not mind, I will write to him about those issues. I can say, however, that under the Compensation Act 2006, it is an offence to provide regulated claims management services unless authorised or exempt. The hon. Gentleman will not be surprised to learn that the exemption applies to trade unions, and that is part of the problem that he rightly highlighted. I was present at the debate that he held on that subject several years ago.
The hon. Member for Hammersmith covered several other matters, but he essentially spoke to tomorrow’s debate, and we will deal with those issues then. My right hon. Friend the Member for Carshalton and Wallington asked about some important aspects relating to the consumer. The Chairman of the Transport Select Committee, the hon. Member for Liverpool, Riverside (Mrs Ellman), rightly mentioned that share premiums had risen by 40% in the last year alone. This is of course a matter of concern, and we have discussed it with the Association of British Insurers. It has said that if the proposals are effected with the other changes to recoverability of success fees in after-the-event insurance, it would hope to see a fall in insurance premiums. I certainly hope that that is a credible position.
As I said at the outset, there is broad support across the House for a ban on referral fees, although there is some disagreement on how best to implement the ban. The right hon. Member for Blackburn (Mr Straw) spoke to his amendments with typical passion, but I would like to set out briefly why the Government cannot support them. Amendments (a) to (c) to new clause 18 seek to capture within the prohibition all arrangements to pay or receive referral fees, even when a payment has not yet been made. These amendments might have been tabled in support of his amendment to make the payment and receipt of referral fees a criminal offence. However, I am concerned that capturing an agreement to pay referral fees when payment might not have occurred would be very difficult to enforce. A solicitor’s accounts, for example, might well show that a particular payment had been made that could, on the face of it, be a referral fee. However, it is unlikely that agreements, which in some cases might be no more than verbal agreements, could be so readily identified without time-consuming investigation. In any event, we do not think that it is necessary to provide for this eventuality, first because such agreements would be unenforceable under subsection (6) of new clause 19 and, secondly, because whatever might be agreed, the payment of the referral fee would still be prohibited. So, in practice, it is unlikely that a party would enter into an agreement to pay a referral fee when payment would be a breach of the prohibition and the agreement would not be enforceable.
I have already dealt, in moving the new clause, with the arguments against amendment (e), which seeks to create a new criminal offence. I should just reiterate that the Government are fully committed to ensuring that the ban will work effectively.
Mr Straw
When I made my point about the banning of referral fees being backed by the criminal law, the Lord Chancellor did not say that he agreed with me, but he did say, on 13 September:
“We are now considering the way in which to put this into practice, but it is likely to be in the form recommended”—[Official Report, 13 September 2011; Vol. 532, c. 879.]
—that is, a criminal prohibition as well as a regulatory one. He appeared to have an open mind about that, so what has changed since then?
Mr Djanogly
I have just confirmed with my right hon. Friend the Lord Chancellor that, in the next sentence of that quote, he said that he had not committed to creating a criminal offence.
I can assure the right hon. Member for Blackburn that we have thought long and hard about how to achieve this, and I am aware of the concerns raised in the Justice Committee’s recent report on referral fees and the theft of personal data. The Committee’s Chairman made the point again today that the penalties for breaching section 55 of the Data Protection Act were not sufficient. The Government are keeping the question of whether to introduce custodial penalties for section 55 offences under review, and we will respond to the Justice Committee’s report in due course. However, the issue of how to deal with people such as rogue motor garage workers or nurses who are breaking the law by breaching the Data Protection Act is separate from that of how to introduce a new ban on regulated bodies to prevent them from paying referral fees, which they are currently permitted to do. I strongly believe that our ban, which will stop lawyers, claims management companies and insurance companies from paying and receiving referral fees, will remove the incentives for selling personal data from the whole system. That is because there will be no one for the rogue garage, for instance, to sell the data to, as all the people in the system who can make any profit out of handling claims will be prevented from paying referral fees. My hon. Friend the Member for East Hampshire (Damian Hinds) well set out the complexity involved in this instance.
1. Regulator | 2. Regulated person |
|---|---|
the Financial Services Authority | an authorised person (within the meaning of the Financial Services and Markets Act 2000) of a description specified in regulations made by the Treasury |
the Claims Management Regulator | a person authorised by the Regulator under section 5(1)(a) of the Compensation Act 2006 to provide regulated claims management services |
the General Council of the Bar | a person authorised by the Council to carry on a reserved legal activity within the meaning of the Legal Services Act 2007 |
the Law Society | a person authorised by the Society to carry on a reserved legal activity within the meaning of the Legal Services Act 2007 |
a regulatory body specified for the purposes of this subsection in regulations made by the Lord Chancellor | a person of a description specified in the regulations in relation to the body |
1. Regulator | 2. Regulated person |
|---|---|
the Financial Services Authority | an authorised person (within the meaning of the Financial Services and Markets Act 2000) of a description specified in regulations made by the Treasury |
the Claims Management Regulator | a person who is authorised by the Regulator under section 5(1)(a) of the Compensation Act 2006 to provide regulated claims management services and is of a description specified in regulations made by the Lord Chancellor |
an approved regulator for the purposes of Part 3 of the Legal Services Act 2007 (approved legal activities); | a person who is authorised by the regulator to carry on a reserved legal activity and is of a description specified in regulations made by the Lord Chancellor |
a licensing authority for the purposes of Part 5 of that Act (alternative business structures) | a person who is licensed by the authority to carry on a reserved legal activity and is of a description specified in regulations made by the Lord Chancellor’.—(Mr Dunne.) |
The Parliamentary Under-Secretary of State for Justice (Mr Crispin Blunt)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
Government new clause 24—Power to increase certain other fines on conviction by magistrates’ court.
Government new clause 25—Power to amend standard scale of fines for summary offences.
Mr Blunt
The new clauses are designed to remove the upper limits on the fines that can currently be imposed in magistrates courts. Raising the upper limits on fines gives sentencers greater flexibility to identify the most effective punishment appropriate to the offences and offenders before them, particularly when combined with other disposals such as suspended sentences when offenders are close to the custodial threshold.
The Government believe that financial penalties, as long as they are set at the right level, can be just as effective as community payback or curfews in punishing offenders and deterring them from further offending. Fines hit offenders where it hurts: in their pockets. They also have the advantage of not affecting opportunities for employment or having an impact on family responsibilities, and hence can prevent further acceleration into a criminal lifestyle. Moreover, they do not impose a further burden on the already hard-pressed taxpayer or on society as a whole. Not only are fines punitive; they provide reparation for society, and serve as part of offenders’ restoration to all of us.
That is why courts already have flexibility to impose fines in cases that have passed the community sentence threshold. It is entirely right for them to be able to consider the circumstances of the offences and of the offenders before them, and, having weighed up the various purposes of sentencing, to decide that a fine will provide an appropriate level of punishment and deterrence without needing to consider a community order. Courts already have wide discretion to make use of fines in appropriate cases, and the Government want to support and encourage that.
We particularly wish to ensure that magistrates, who issue the vast majority of fines, have the powers that they need to set fines at levels that are proportionate to the most serious offences that come before them for trial. These clauses therefore make two key changes to the way that fines operate in the magistrates courts. The first is to replace all upper limits of £5,000 or more for fines available on summary conviction. At the moment, where an offence is triable on summary conviction only, magistrates do not have the option of committing the case to the Crown court for sentence and are constrained in their ability to fine by the statutory maximum fines. For the most serious offences tried by magistrates, that is generally £5,000, although for certain offences where the financial gain from offending is substantial—for example, in some environmental offences—the maximum fine can be as high as £50,000.
For less serious offences, we believe that it is right to retain the differentials between the punishments. However, we wish to give Government and Parliament more flexibility to amend these maxima as the need arises.
Mr Blunt
If my hon. Friend will forgive me, I need to conclude my remarks and allow the Opposition to respond.
The second change these clauses propose is to give the Secretary of State a power to increase the current maximum fine amounts for levels 1 to 4 on the standard scale of fines for summary offences. These amounts are currently £200, £500, £1,000 and £2,500. The new power would be to increase these so as to keep them in the same ratio to one another as at present. There is already a similar power to change them in line with changes in the value of money, so the new power would be an extension of that. We intend to consult on the right level at which to set these new maxima.
That should form part of a wider review of sentences served in the community, so I want to use this debate to notify the House that we are entering a review process, which we intend will in due course lead to a formal public consultation on community sentences. For too long, community sentences have failed to punish offenders properly for their actions, and the Government are committed to changing that. We are already taking action, including through this Bill, to strengthen community orders, but we want to go much further and deliver a step change in the way sentences operate. They must, of course, address the problems that have caused the offending behaviour in the first place—the drug abuse, the alcoholism, the mental health problems—but they must also punish properly and send a clear message to society that wrongdoing will not be tolerated. We want to see a clear punitive element in every sentence handed out by the courts.
We will consult on further reforms to ensure that community sentences effectively punish and rehabilitate offenders. That should include consulting on what constitutes effective delivery of the principles of sentencing, punishment and rehabilitation, as I have mentioned, but also on protection of the public, restoration and how the whole package can produce the most effective deterrent to crime. A part of this consultation will be on the new maxima at levels 1 to 4 in the magistrates courts.
The Government want offenders to be in no doubt that the courts have the powers they need to punish their crimes. Once the victim’s compensation has been addressed—and if an offence presents no wider issues of reparation or public protection—if a court believes that a fine would be the best way of punishing an offender and deterring future offending, then we want to ensure that there are no barriers to courts setting the fine at the appropriate level.
To sum up, these new clauses would remove the £5,000 cap on fines that magistrates can impose, so that they are able to use their discretion and set fines that are proportionate to the offences before them. That will also improve the efficiency of the court system, by removing the need for magistrates to send cases to the Crown court when they feel the current maximum fine is not a severe enough punishment for the offenders before them. For offences with caps set at less than £5,000, we propose to retain the current structure of differential maxima, with a power to increase them as necessary.
I urge Members to support the measures.
Mr Slaughter
I thank the Minister for his clear account of the effects of these proposals, but I wonder why they are being introduced at this stage. He may wish to explain that. They are not controversial. We do not intend to oppose them as we think their measures are sensible, and we are glad that the Government are, for once, in favour of judicial discretion. They made certain concessions in Committee, one of which was not withdrawing magistrates’ powers to impose longer custodial sentences. We believe the magistrates system serves this country extremely well—this year marks its 650th anniversary. However, although these are sensible changes to current magistrates powers, we are concerned about the fact that, once again, they are part of a package of new measures.
I will not take up any more of the House’s time as we shall shortly come on to discuss two very important and significant new provisions in the criminal law, of which we have had very little notice as they have been introduced at a very late stage. I therefore simply ask again why we have had to wait until Report stage for the measures currently under discussion to be introduced. We do not oppose the proposals, however, as we consider them to be sensible and uncontentious.
Sir Alan Beith
How nice it is to hear the hon. Member for Hammersmith (Mr Slaughter) in conciliatory mood. The Minister has made a perfectly good case for increasing the level of fines available in magistrates courts. He gave several reasons for doing so, and I would add to them the giving of further encouragement to magistrates to deal with cases themselves wherever that is possible, rather than referring them upwards to the Crown court. This is part of a general increased empowerment of magistrates to deal with cases.
The Minister has mentioned the wider issue of community penalties and non-custodial sentences, and the review and consultation that will address them. I hope that proves to be a fruitful process. There is a danger that he is giving two signals at once, however. He is hoping to give the necessary signal to the public that many offenders consider community sentences to be more demanding and rigorous, and much less congenial, than very short terms of imprisonment. Some offenders who have appeared before the Justice Committee have said they committed further offences because it was easier to spend the time in prison than to continue with a community sentence. The Government must also give a signal to the judiciary that it should make the maximum use of the available range of penalties, on the basis of what is most likely to reduce reoffending. If a rigorous, well-supervised and policed community sentence is more likely to reduce reoffending, the judiciary should be encouraged to choose that option. I hope people do not find the signals too confusing, that we end up with a well-supported system of community penalties, and that people have confidence that for many offenders such penalties reduce reoffending more effectively than prison does.
Gareth Johnson
Although I support the Government’s proposals, it would make sense to remove the upper limit on financial penalties imposed by magistrates courts. The proposals do not relate to levels of compensation, so if magistrates are asked to sentence for, say, a theft of £5,000-worth of goods, they will still have to refer the matter to the Crown court for sentence if they do not have the power to award more than £5,000 compensation. I therefore wonder whether the Government would be willing to look at the levels of compensation in the future, to see if there is any scope for lifting the upper limit of compensation awards that magistrates courts can impose.
Mr Blunt
I am grateful to have this brief opportunity to respond to the points raised. Let me see if I can do justice to the grudging support of the hon. Member for Hammersmith (Mr Slaughter). I am certainly profoundly grateful that we found him in a positive mood, and the fact that he welcomes these measures gives the answer to his questions. They are appropriate measures; that is why they are being welcomed across the House.
My right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith) is absolutely right that many defendants consider a proper combination of community sentences to be much more onerous than custody—and I want to increase the opportunities for that to be seen as much more onerous than custody. My hon. Friend the Member for Shipley (Philip Davies) is not present, but I remember him citing an example from the Daily Mail about a judge who threw the book at an offender because he thought he could not send him to prison: he gave the offender a combination of community sentences that were much more onerous than the custody would have been.
We want to get to a place where we can get a better balance on sentencing, to make sure that we actually punish people in the most appropriate way and give sentences greater flexibility. That is what this measure will do. I will write to my hon. Friend the Member for Dartford (Gareth Johnson), who made an entirely proper point. I want to make it absolutely clear that compensation comes first—
Mr Deputy Speaker (Mr Nigel Evans)
Before we embark on the next debate, may I draw attention to Mr Speaker’s request, made earlier this afternoon, for brevity from the Front Benchers and Back Benchers in these debates so that all the important matters before the House for decision today can be properly considered?
New Clause 27
Reasonable force for the purposes of self-defence etc
‘(1) Section 76 of the Criminal Justice and Immigration Act 2008 (reasonable force for the purposes of self-defence etc) is amended as follows.
(2) In subsection (2) after paragraph (a) omit “and” and insert—
“(aa) the common law defence of defence of property; and”.
(3) After subsection (6) insert—
“(6A) In deciding the question mentioned in subsection (3), a possibility that D could have retreated is to be considered (so far as relevant) as a factor to be taken into account, rather than as giving rise to a duty to retreat.”
(4) In subsection (8) for “Subsection (7) is” substitute “Subsections (6A) and (7) are”.
(5) In subsection (10)(a) after sub-paragraph (i) omit “or” and insert—
(ia) the purpose of defence of property under the common law, or”.’.—(Mr Blunt.)
Brought up, and read the First time.
Mr Deputy Speaker
With this it will be convenient to discuss Government amendments 136 and 141.
Mr Blunt
I shall certainly be following Mr Speaker’s direction, and I hope that we will dispose of this matter in as short an order as we disposed of removing the limit on magistrates’ fines.
The question of how far one can go to defend oneself crops up again and again in the letters Members of Parliament receive from their constituents, and of course it is always a controversial issue in the press and the media. It usually arises because a hard-working, law-abiding home owner or shopkeeper has been forced to defend themselves against an intruder and has ended up being arrested for it. Being confronted by an assailant in one’s home, on the street or anywhere else can be a terrifying prospect. It is essential that the law in this area is clear, so that people who use reasonable force to defend themselves or to protect their properties can be confident that the law is on their side.
There will always be occasions when the police need to make an arrest to enable a prompt and effective investigation, especially if they turn up at an address and somebody is dead. We are working with the Home Office on new guidance for the police to ensure that arrests are made only where necessary, but these provisions should give people greater certainty that the law itself is on their side and they will not be prosecuted or convicted if they have only used reasonable force.
Mr Llwyd
Will the Minister advise the House how the provisions change the common law doctrine and principle of a person being able to protect his or her property using force and the doctrine of self-defence, where reasonable force is used to defend oneself? I asked the Lord Chancellor that yesterday and he told me to wait until today for the answer—I am all ears.
Mr Blunt
The right hon. Gentleman should listen out for the next passage of my remarks, as I hope it will give him and the rest of the House satisfaction.
On the specific provisions, the new clause is not designed to sweep away the fundamental premise that somebody can use reasonable force in self-defence. In my view, that aspect of the law is entirely sensible. Allowing somebody to use unreasonable or disproportionate force would be very dangerous indeed, as it would effectively sanction vigilantism or violent retribution. Instead our proposals are designed to clarify what “reasonable” force means in practice. The new clause will amend section 76 of the Criminal Justice and Immigration Act 2008 to make it clear that a person can use reasonable force to defend property in addition to defending themselves, other people or preventing crime, and that they are under no duty to retreat from an offender when acting for a legitimate purpose, although if they had a chance to retreat, the court may still consider it when deciding whether the force used was reasonable in the circumstances. We did not consult on these measures because of the limited nature of the amendments, but that should not detract from their importance in reassuring householders and small shopkeepers who use reasonable force to defend themselves and their properties that the law is on their side.
Karl Turner (Kingston upon Hull East) (Lab)
Does the Minister not accept that the law works perfectly well as it is? Some years ago, I defended someone who had chopped off someone’s ear with a samurai sword and the jury acquitted him, saying that he had used reasonable force in the circumstances.
Mr Blunt
I cannot comment on that individual case—[Interruption.] The shadow Justice Secretary tempts me down that road, but I will resist. The much clearer message that will be sent if the House chooses to accept the Government’s proposals will mean that the position should be crystal clear to householders and shopkeepers on the force that they are entitled to use. That is the purpose of these provisions. We are seeking to reassure the public, and this all sits as part of our desire to have a society that can exercise its rights and properly defend those rights, and that does not feel that people have to pass by on the other side, particularly when their lives and property are at risk.
Mr Llwyd
May I suggest to the Minister that legislating is not all about giving out signals and that it is about making law? I have no axe to grind personally with the Minister, who is a perfectly decent man and who engaged with us in Committee on many matters, above and beyond his brief. However, he may have wished to circulate a photocopy of the Crown Prosecution Service guidance on self-defence and the prevention of crime. Any fool can read and understand it, as it says simply, under the heading of “Reasonable Force”:
“A person may use such force as is reasonable in the circumstances for the purposes of: self-defence; or defence of another; or defence of property”.
It goes on to describe a further two matters. Providing a copy of that would have done, rather than using legislative time.
Mr Blunt
I am very grateful—[Interruption.] I am not embarrassed in the least. This measure forms part of the coalition agreement. We are delivering on that, sending a clear message and putting the law beyond doubt. Having things buried away in guidance to prosecutors, given that reassurance is needed for home owners and shopkeepers, is a distinctly sub-optimal way of proceeding on an issue such as this. When viewed in conjunction with the Home Secretary’s plans to strengthen the code of arrest for the police, we hope that these measures will help to fulfil the commitments in the coalition agreement on this issue. We must take together the instructions to Crown prosecutors, the legislation that I hope will go on to the statute book as a result of these Government measures and that code of arrest for the police, and I can therefore happily commend these proposals to the House.
Sadiq Khan
First, may I say, for the avoidance of doubt, that Labour Members do not intend to oppose new clause 27 or the consequential amendments, even though it is simply a rehash of an existing law and this valuable parliamentary time could have been used to discuss contentious issues that have caused real concern for many of our constituents? It was the previous Government, through section 76 of the Criminal Justice and Immigration Act 2008, who placed the common law of self-defence into statute.
Since that time, there have been a number of calls, especially from those on the right, to “tighten” the laws on self-defence because they think that is good politics. Back in February 2010, the Prime Minister argued that the law needed further tightening to benefit the home owner against the burglar. Indeed, the Conservative party manifesto said that it would
“give householders greater legal protection if they have to defend themselves against intruders in their homes.”
The Conservatives have floated on a number of occasions the issue of reasonable force and changing the law to allow anything other than actions that are grossly disproportionate. Back in December 2009, the shadow Home Secretary, now Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling) committed a future Conservative Home Secretary to changing the law so that convictions against householders would happen only in cases where the actions involved were “grossly disproportionate.” But despite all the spin, that change has not materialised. The new clause will not allow home owners to use grossly disproportionate force or disproportionate force. It will not even strengthen the law. That is because expert opinion and evidence on the issue of self-defence for home owners is pretty unanimous.
It is widely accepted by those at the coal face that the law on self-defence works pretty well and it is unclear in many quarters why the law would need strengthening. The Director of Public Prosecutions, Keir Starmer QC, has said:
“There are many cases, some involving death, where no prosecutions are brought. We would only ever bring a prosecution where we thought that the degree of force was unreasonable in such a way that the jury would realistically convict. So these are very rare cases and history tells us that the current test works very well.”
That approach is further reinforced by what has happened in recent months. That is why the Minister, whom we all like, is embarrassed by having to move the new clause and why his right hon. and learned Friend the Justice Secretary, whom we all love, has disappeared from the Chamber. Recent cases involving home owners such as Vincent Cooke in Cheshire, Peter Flanagan in Salford and Cecil Coley in Old Trafford, in which intruders were killed, have demonstrated that when reasonable force is deemed to have been used, the Crown Prosecution Service has not brought any charges, so the current law works. I see that a note is desperately being passed to the Minister—it is probably a sick note from the Justice Secretary.
Paul Mendelle QC, a previous chairman of the Criminal Bar Association, said:
“The law should always encourage people to be reasonable, not unreasonable; to be proportionate, not disproportionate.”
He went on to add that the current law worked perfectly well and was well understood by juries. Just yesterday he argued in The Guardian that the two areas of change proposed by the Government are nothing of the sort. By amending section 76 of the 2008 Act so that there is no duty to retreat before force they are restating the current law. I think it is called rearranging the furniture: things might look different, but nothing of substance will have changed.
Sadiq Khan
I am glad that the hon. and learned Gentleman welcomed the Labour Government’s section 76, but it is because we have already done that that there is no point in doing it again. I appreciate that he would like to seek the glory for doing so, but we have already done it. There is no need to reinvent the wheel.
Sadiq Khan
With the greatest respect to the hon. and learned Gentleman, he is wrong.
Far from requiring retreat, the current law allows that even the first blow can still be reasonable force in self-defence. It is unclear what including the defence of property in the 2008 Act will add to the law as it does not differ from existing interpretations. The right hon. Member for Dwyfor Meirionnydd (Mr Llwyd), who speaks for Plaid Cymru, has given examples from the CPS guidance written in plain English. Perhaps he is suggesting that we should publish the CPS guidance and deliver it to every household in England and Wales, but I think that would be a waste of time. The Minister seems to believe that voters—home owners—will read the Bill to seek clarification of the law.
Using legislation as a public relations stunt is no way to run a Government, especially when measures are introduced at the eleventh hour. Not only have the clauses on self-defence not been subjected to scrutiny or consultation, but it is not clear how much they will add to legislation on self-defence. The Government’s own impact assessment confirms that there will be no impact on the MOJ, so what we have today is not the Conservatives’ manifesto pledge—that is another broken promise, by the way—or a strengthening of the law, as it has been spun as being, but a simple restatement of the policy on self-defence, which had already been restated excellently back in 2008. For those reasons, we will not oppose the measures.
Mr Llwyd
It is often said in parliamentary circles that amendments, especially those moved by Opposition Members, are otiose, although I venture to suggest that few people outside this Chamber use that word, let alone know what it means: namely, that something is pointless. I start on the basis that this is pointless and I shall develop my argument point by point, if I am allowed to do so.
Sadiq Khan
Does the right hon. Gentleman mean the Justice Secretary or this new clause?
Mr Llwyd
No, like the right hon. Gentleman, I have the highest regard for the right hon. and learned Gentleman and I presume that this evening he is exercising his own right to self-defence by not being here. He has withdrawn from the Chamber and the possibility of being dealt a few blows that could actually hurt him. I say that not in a rude or pejorative fashion but in a semi-jocular way.
Yesterday, I asked the right hon. and learned Gentleman to answer the very question I also asked the Minister: what would be the exact difference in the law after this measure was introduced? Answer came there none from the right hon. and learned Gentleman, except, “Hang on until tomorrow and all will be revealed.” In the past few minutes, the Minister has revealed all and, blow me, I am underwhelmed! I listened intently but reason or logic came there none and changes less still, so I am still none the wiser. “Could it be,” I ask myself, “that the Government are speaking to an audience outside the Chamber?” Surely not; surely, they are not actually addressing an audience outside the Chamber such as the tabloid groups. No, never, that could not be right—I have dismissed that idea.
Currently, a householder may use reasonable force to defend him or herself or another, or in the prevention of crime, which includes defending a person’s property. The new clause therefore does nothing. The use of force in self-defence is governed by common law and the use of force in the prevention of crime is governed by section 3 of the Criminal Law Act 1967. In both cases, the test to be applied is whether the force used was necessary and, if so, whether the degree of force used was reasonable in all the circumstances.
Whether the force used can be considered reasonable is decided according to the circumstances and the danger that the householder perceived him or herself to be in. The beauty of that law is the fact that it is so open, because circumstances change and one looks at the circumstances of each case. We have heard about someone having his ear sliced off and I can tell hon. Members about a case I defended in which, in a public house in north Wales, two families who were not very friendly met up. One was a family of poachers and the other of gamekeepers. Three members of one family jumped on top of one member of the other family in the toilets and the only way in which the lad, who was by himself, felt he could defend himself was by squeezing one of the others’ testicles in the most awful way. It left some permanent damage by the way, so it was not altogether a laughing matter—certainly not for the man involved. Anyway, the question for the court was whether the force used there and then was reasonable in all the circumstances and the court said, yes. So every case is decided on its merits; that is the beauty of the law of self-defence.
I deduce therefore that the only possible justification for the change is to provide some form of clarification and/or, possibly, that somebody is addressing somebody outside. Section 76 of the Criminal Justice Act 2003 clarifies the operation of the common law and section 3 defences as listed in the 1967 Act. The 2003 Act did not change the current test that allows the use of reasonable force and neither, I suspect, will new clause 27.
Nor, indeed, can the Government argue that the law surrounding reasonable force is badly understood by the judiciary—professional or lay. The existing position with regard to property is set out clearly in layman’s terms in the CPS guidance “Self-defence and the prevention of crime”. It says:
“Reasonable force. A person may use such force as is reasonable in the circumstances for the purposes of: self-defence; or defence of another; or defence of property; or prevention of crime; or lawful arrest.
In assessing the reasonableness of the force used, prosecutors should ask two questions:
was the use of force necessary in the circumstances, i.e. Was there a need for any force at all? and
was the force used reasonable in the circumstances?”
The existing law works well and is well understood; 99% of the time it is well applied in courts and I do not know of any great tide of concern that the law needs further clarification.
Mr Cox
Of course I agree with almost every word that the right hon. Gentleman is saying, but does he not agree that if the Government first enact section 76 of the Criminal Justice and Immigration Act 2008 they might as well make it complete by including the defence of property? If they are going to bother with section 76 at all, they should make it complete and include the defence of property.
Mr Llwyd
I hear what the hon. and learned Gentleman says, and I suppose that that is right, but I come back to my earlier point that the whole process is otiose. I understand what he is saying, and he has logic on his side. We talk about logic, but parliamentary time is short. Yesterday we had to leave out consideration of a raft of important matters relating to social welfare and social justice. None of them was discussed. Yet we have time this evening to talk about something that is unnecessary. So although I respectfully disagree with the hon. and learned Gentleman, he has logic on his side. However, the new clause is not the right vehicle for clarification of the law.
Quite why the measure is being introduced now is rather baffling. I can only presume that it is to please the tabloids and that this Government, like the last, want to convince voters that they are not soft on crime. Those on the right of the Justice Secretary’s party have made clear their aspirations to amend the law on reasonable force for some time now. As far back as 2009, the then shadow Home Secretary, the right hon. Member for Epsom and Ewell (Chris Grayling), said that any future Conservative Government would push for prosecutions, and convictions, only where courts judged that the action taken had been “grossly disproportionate”. That would have stood the law on its head. A huge amount of jurisprudence would have emanated from that decision. No doubt the hon. and learned Member for Torridge and West Devon (Mr Cox) and I would have profited from it, but it would have been a bad step in my view. The Conservative party wound back somewhat after that was said.
I am glad that such an extraordinary change to the law has not occurred, at least not yet. As Michael Wolkind QC, who represented Tony Martin, who was found guilty of murder and wounding with intent under the existing law, has said, allowing householders to use force that is not “grossly disproportionate” would amount to “state-sponsored revenge”.
Indeed, an outsider looking in might be forgiven for suspecting that hundreds of people were being prosecuted every year under the current law. But an informal trawl by the CPS suggested that between 1990 and 2005 there were only 11 prosecutions of people who had used force against intruders in houses, commercial premises or private land. So that is what we are dealing with and it leads one to question why we are talking about it tonight.
As the chair of the Bar Council Paul Mendelle QC said—it has been mentioned by the right hon. Member for Tooting (Sadiq Khan), but it will stand repetition—
“The law should always encourage people to be reasonable, not unreasonable; to be proportionate, not disproportionate.”
Paul Mendelle also commented in the same article written in The Times that the present law worked well and was well understood by juries. Again, I ask why we are doing this.
Changes to the law should not be brought about to produce good sound bites. The common law of self-defence already makes it perfectly clear that a householder is able to use reasonable force against an intruder in defence of himself or herself or his or her property. Amending the existing law for no gain in matters of substance will serve only to increase vigilantism and is not a good use of parliamentary time. It could lead to people using excessive force because they think they might be above the law—“An Englishman’s home is his castle” and all that kind of thing. I do not know. It might give out all the wrong signs, not the signs that Ministers on the Treasury Bench hope and suspect they are giving out.
I believe that the new clause has more to do with internal party politics than with policy. We are using valuable parliamentary time to play this out. The amendment is otiose and serves only to play to the drum beat of the tabloid press. I have a lot of time for the Justice Secretary, who is a man of great integrity, but I fear that in introducing the new clause he is dancing to the tune of the tabloids.
Mr Blunt
I will turn to the remarks of the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) towards the end of my speech, but first let me say how grateful I am to the right hon. Member for Tooting (Sadiq Khan) for his kind personal remarks. I was marginally upset that I did not leap the amorous threshold that my right hon. and learned Friend the Justice Secretary did, but I am grateful for the limited extent of his affection compared to that for my right hon. and learned Friend.
I was amazed at the chutzpah of the right hon. Member for Tooting in lecturing the Government about a public relations stunt and spin. It took me a moment to pick my jaw back up off the Bench as I listened to him. There is a clear answer to the right hon. Gentleman. He properly stood up for the legal system as it now sits. As my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox) said, it is an inconsistent message if we have changed section 76 of the Criminal Justice Act but have not applied it to property, so let us make the position absolutely clear to everyone that not only in the code for crown prosecutors and in the common law but in statute law, as passed by the House, property is included. That is a clear reason for making this change.
The right hon. Gentleman said that presumably the change was for an audience outside the Chamber. Yes, it is. It is all very well for sophisticates such as us, who understand the word “otiose”—used by the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd)—but the issue goes right to people’s hearts. They feel that they are entitled to defend their home or their shop, and we owe it to them to make it crystal clear that we absolutely support them in defending themselves, their families and their property. The proposals make that absolutely clear. We need to understand that when something is so central to how everybody feels about their home, shop or place of business we must send a clear signal from this place about whose side we are on.
Sadiq Khan
I am sorry to interrupt the Minister’s flow, but I have a simple question. Once the law is on the statute book, will a home owner have more rights, fewer rights or the same rights as they have now?
Mr Blunt
The home owner will have much greater reassurance about exercising their rights. [Interruption.] It is all for well for the lawyers on the Opposition Benches to cackle and say that the provision will not make any strict legal difference; it makes a profound difference in the reassurance that people will feel about operating in defence of their property and their life, which is why I am happy to commend the new clause to the House.
Question put and agreed to.
Clause read a Second time and added to the Bill.
New Clause 26
Offence of squatting in a residential building
‘(1) A person commits an offence if—
(a) the person is in a residential building as a trespasser having entered it as a trespasser,
(b) the person knows or ought to know that he or she is a trespasser, and
(c) the person is living in the building or intends to live there for any period.
(2) The offence is not committed by a person holding over after the end of a lease or licence (even if the person leaves and re-enters the building).
(3) For the purposes of this section—
(a) “building” includes any structure or part of a structure (including a temporary or moveable structure), and
(b) a building is “residential” if it is designed or adapted, before the time of entry, for use as a place to live.
(4) For the purposes of this section the fact that a person derives title from a trespasser, or has the permission of a trespasser, does not prevent the person from being a trespasser.
(5) A person convicted of an offence under this section is liable on summary conviction to imprisonment for a term not exceeding 51 weeks or a fine not exceeding level 5 on the standard scale (or both).
(6) In relation to an offence committed before the commencement of section 281(5) of the Criminal Justice Act 2003, the reference in subsection (5) to 51 weeks is to be read as a reference to 6 months.
(7) For the purposes of subsection (1)(a) it is irrelevant whether the person entered the building as a trespasser before or after the commencement of this section.’.—(Mr Blunt.)
Brought up, and read the First time.
Mr Deputy Speaker (Mr Nigel Evans)
With this it will be convenient to discuss the following:
Amendment (a) to new clause 26, line 7, at end insert—
‘(2A) The offence is not committed where the building has been empty for six months or more and where there are no significant steps being taken to refurbish, let or sell the building at the time of the trespass.’.
Amendment (c) to new clause 26, line 22 leave out subsection (7) and insert—
‘(7) For the purposes of subsection (1)(a) no offence is committed if the person initially entered the building as a trespasser before the commencement of this section.’.
Government amendment 140
Mr Blunt
The Government are very concerned about the harm that squatters can cause. Residential and non-residential property owners have contacted Ministers repeatedly about the appalling impact that squatting can have on their homes and businesses. These are not media scare stories; they are very real and stressful events for victims whose properties have been occupied.
It is not just a question of the cost, length of time and incredible hassle involved in evicting squatters. Properties can be left in a terrible state after the squatters have been evicted and owners may face hefty cleaning and repair bills. While the property owner is literally left picking up the pieces, the squatters have gone on their merry way. They might even be squatting in somebody else’s property.
The current law already offers some protection to both non-residential and residential property owners. Squatters may be guilty, in certain circumstances, of offences such as criminal damage and burglary. There is also an offence under section 7 of the Criminal Law Act 1977 that protects certain residential property owners. It applies when a trespasser fails to leave residential premises on being required to do so by or on behalf of a “displaced residential occupier” or a “protected intending occupier.” This means that people who have effectively been made homeless by squatters can ask the trespasser to leave, and if the trespasser refuses to leave, they can report an offence to the police.
We do not think the existing legal framework goes far enough to tackle the problems I have just described. The offence under section 7 of the 1977 Act does not protect non-residential property owners or many residential property owners, including landlords, local authorities and second home owners, who cannot be classified as displaced residential occupiers or protected intending occupiers. Following the conclusion of a recent public consultation exercise, we have decided that decisive action is needed now to criminalise squatting in residential buildings. We want to reassure owners and lawful occupiers of residential property that the law will protect them should trespassers occupy their properties. We want to send a clear message to would-be squatters that it is simply not acceptable to occupy someone else’s home.
Tracey Crouch (Chatham and Aylesford) (Con)
I am sure the Minister will recall that a year ago tomorrow he met my constituent Steve Cross, a commercial property manager. The Government are clearly concerned about the impact of squatting in commercial property, so it is surprising that the new clause, which I entirely support, does not include greater protections for commercial properties. Will the Minister reassure my constituent that the Government have not forgotten the devastating impact of squatting on commercial property managers, and that they will continue to look at ways of strengthening the law to provide greater protection against squatters in commercial properties?
Mr Blunt
I am grateful to my hon. Friend for her intervention and for bringing her constituent to see me. I absolutely give her that reassurance, and I will do so in terms during my prepared remarks, which I hope will show her that I have not forgotten that the consultation identified the fact that 50% of the harm caused by squatters was to the owners of commercial premises. Although we are not proposing to criminalise such squatting with these measures, it is certainly not forgotten.
We recognise that this is a controversial area of policy. Many homelessness charities, for instance, are likely to continue to say that the new offence will criminalise homeless and vulnerable people who squat in run-down residential properties, but one of the reasons that the properties remain in that state is that the owners cannot get in to renovate them because the squatters are present. Consultation responses indicated that squats can be unhygienic and dangerous places to live and are no place for genuinely vulnerable people. That is why we will ensure that reforms in this area are handled sensitively, in conjunction with wider Government initiatives to tackle the root causes of homelessness. We are also working to provide affordable homes and to bring more empty homes back into use.
Jeremy Corbyn (Islington North) (Lab)
The Minister will, like me, have read the documents presented by Crisis, which indicate that 40% of homeless people have been squatters at some time, and that because they are often single people, they have great difficulty in getting local authority or housing association accommodation, and there are 700,000 empty properties in the country. What are homeless people supposed to do?
Mr Blunt
I will deal with the amendments tabled by the hon. Member for Hayes and Harlington (John McDonnell), who has quite properly raised concerns in this area, and I will go into some detail to give the hon. Member for Islington North (Jeremy Corbyn) a proper answer to his question.
As my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) said, there are others who will say that any new offence should extend to squatting in commercial premises. As I said to her, I remain concerned about squatting in those properties and will work with other Departments and the enforcement authorities to see whether action against existing offences such as criminal damage and burglary could be enforced more effectively in those cases.
The Metropolitan police acknowledged, in response to our consultation, that a lack of training and practical knowledge regarding the law on squatting may be a barrier to effective enforcement. My officials will work with the Home Office and the wider police service to address these issues and fill any gaps in current police practice. We will keep the situation under review in relation to non-residential property and are not ruling out further action in the future if it is needed.
Jim Shannon (Strangford) (DUP)
Will the legislation provide for co-operation or contact with services—electricity, water and so on—to those houses as a method whereby people can be taken out of those houses to ensure that the squatting does not continue? Will that be covered by the legislation?
Mr Blunt
That is not strictly within the terms of what is proposed here. The effect would be to criminalise those who are squatting in residential premises and to create a new offence. As a first step we intend to limit the new offence to squatting in residential buildings. We consider that this option strikes the best balance. It will protect those who are likely to suffer most from squatting—those whose homes are taken over by squatters.
I shall turn now to the amendments tabled by the hon. Member for Hayes and Harlington. I know that he is a supporter of the campaign group Squatters Action for Secure Homes, and I also know that he agrees with the arguments put forward by homelessness charities, such as Crisis, that criminalising squatting will impact on homeless people who squat. I fully understand why he tabled the amendments, but I will take this opportunity to explain why I do not agree with them.
On amendment (a), many squatters claim that they do not cause any harm to anybody because they look for empty properties to occupy. In the responses to our recent consultation exercise, that point was made by squatters and squatters groups, but respondents who made that argument were missing one rather important point: the houses are not theirs to occupy. There are many reasons why a house might be left empty for more than six months without any steps being taken to refurbish, let or sell the building. For example, somebody might decide to do charitable work in another country for a year, or they might visit their second home during the summer months only. It is the owner’s prerogative to leave the house empty in those circumstances. To say that property owners or occupiers should not be protected by the criminal law in these circumstances would be unjust and it would considerably weaken our proposed new offence.
Consultation responses highlighted a concern about the number of properties that are left empty on a long-term basis. They argued that such properties can crumble into disrepair and might be seen as a blight on the local neighbourhood. But permitting squatters to occupy derelict, crumbling, unsafe houses cannot be the answer. We are doing a number of things to encourage absent owners to make better use of their properties.
We want to increase the number of empty homes that are brought back into use as a sustainable way of increasing the overall supply of housing, and to reduce the perception of neglect that can blight neighbourhoods. Reducing the number of empty homes will also help to reduce the incidence of squatting. That is why we have announced £100 million of capital funding within the affordable homes programme to tackle problematic empty homes—that is properties that are likely to remain empty without extra direct financial assistance from the Government. This programme will deliver at least 3,300 affordable homes by March 2015, as well as engaging local communities in dealing with empty homes in their area.
Amendment (c) is designed to exempt squatters from the offence if they occupy residential buildings before the date of commencement. Let me be clear that we have no plans to punish people retrospectively. If they have squatted in the past but are no longer squatting when the offence comes into force, the offence will not apply. However, we would be creating a significant loophole if we exempted squatters who initially entered the building as a trespasser in the run-up to commencement even though after commencement of the offence they remain in the building as a trespasser, they know or ought to know that they are a trespasser and that they are living there or intend to live there. Such an occupation would be no less painful for the property owners concerned.
I appreciate that the hon. Gentleman and others are concerned that the new offence might penalise vulnerable, homeless people who squat in run-down residential properties. One of the reasons they remain in this state is, as I said, because the owners cannot get in to renovate them. It would be much better for us to introduce an offence that is capable of protecting law-abiding property owners and occupiers on the one hand, while working with other Government Departments, local authorities, the police and homelessness charities to continue to address the root causes of homelessness and to mitigate any impacts the new offence might have on the levels of rough sleeping.
We are prioritising spending on homelessness prevention, investing £400 million over the next four years, with the homelessness grant being maintained at the 2010-11 level. For the first time, we have also brought together eight Departments through the ministerial working group on homelessness to tackle the complex causes of homelessness. The group published its first report “Vision to end rough sleeping” in July 2011, which sets out joint commitments to tackle homelessness and to ensure that nobody has to spend more than one night out on our streets—“No Second Night Out”. This includes actions to prevent homelessness for those people without a stable home who may be at risk of rough sleeping. For those reasons, I invite the hon. Gentleman to withdraw his amendments.
Caroline Lucas (Brighton, Pavilion) (Green)
It feels as though we are in a different world when the Minister describes these as measures to tackle homelessness and when one considers everything that the Government have been doing with their housing benefit cuts and with their cuts in shared room rate, which organisations say will cause thousands more people to become homeless. Is he not cognisant of those arguments being put forward very forcefully by those charities?
Mr Blunt
I absolutely support the measures being brought forward by my colleagues at the Department for Communities and Local Government. The Minister for Housing and Local Government is absolutely right. One cannot but be impressed by his huge determination in chairing the ministerial group to address this issue. It is the other side of the equation, and I hope that it addresses the amendments and answers the question from the hon. Member for Islington North.
The hon. Member for Strangford (Jim Shannon) asked about linking up with the utility providers. It is already an offence under the Theft Act 1968 to use electricity without authority and the maximum penalty for that is five years’ imprisonment.
I hope that the House will welcome this move to protect home owners and lawful occupiers of residential property from squatters.
Mr Slaughter
It is pleasure to have the Under-Secretary of State for Justice, the hon. Member for Reigate (Mr Blunt), at the Government Dispatch Box this evening. It is a shame that the Lord Chancellor is not here, but of course he was also absent when the provision was announced by the Prime Minister at the famous press conference on 21 June, when most of today’s business first saw the light of day, including the clause we have just debated. At times it appears that there is a parallel Bill: the agenda that the Government wish to present to the media, or which the media dictate to the Government.
Sadly, the consequence for the House is that we do not have the opportunity to scrutinise the legislation properly. I do not know whether that is because the Government have no confidence in or commitment to their own legislation and are simply going through the motions, as we saw a little while ago, but the process of formulating the policy has been absurdly rushed, even by their standards. It is wholly inappropriate to introduce major changes to criminal law on Report. For that reason, among others, I suspect that the provisions will have a rather more torrid time in the other place than they will have here tonight.
Squatters are a nightmare for homeowners and tenants alike. The Criminal Law Act 1977, which the Minister mentioned, makes it a criminal offence for any person not to leave premises when required to do so by “a displaced residential occupier” or “protected intending occupier” of the premises. Furthermore, parts 55(1) and 55(3) of the Civil Procedure Rules allow owners to evict someone from a residence they do not occupy. An interim possession order, backed up by powers in section 76 of the Criminal Justice and Public Order Act 1994, mean that a criminal offence is committed if an individual does not leave within 24 hours of such an expedited order being granted.
As the Minister confirmed in his opening remarks, new clause 26 seeks to deal with squatting in vacant properties for which there is no imminent plan for residency. The clause, as drafted, applies only to residential properties and will not apply where there has been a previous landlord and tenant relationship between the occupier and the owner. Those are not the cases that typically attract the media’s attention. For example, the case of Dr Cockerell and his wife, who was pregnant at the time, was widely reported this September, in the Evening Standard and other newspapers. In that case the police wrongly said that the case was a civil issue and not one for them. As I understand the facts as reported, Dr Cockerell and his wife would have been protected intending occupiers and the police should have intervened. I fear that their failure to do so is not atypical. I remarked in Committee that if we had a pound for every time the police said that something was a civil matter when someone goes to them, we would probably be able to build affordable housing in the country, unlike what the Government are doing. I worry that the Government are trying to introduce new legislation without implementing the legislation that already exists, which is clearly the case in the examples I have given so far.
Jeremy Corbyn
My hon. Friend is old enough to recall the lengthy consultation that took place before the 1977 Act was introduced. It specifically distinguished between an occupied property and a property that had been left empty for a very long time. The issue at the time, particularly in London, was that vast numbers of empty properties were being squatted. That law was a product of consultation. There has been no consultation on this—[Interruption.] Well, there has been very limited consultation, but certainly not in the House, about criminalising people who are actually extremely desperate for all the reasons pointed out by my friend the hon. Member for Brighton, Pavilion (Caroline Lucas).
Mr Slaughter
I think I was doing my politics A-level at the time, so I might have studied the Act as part of that. My hon. Friend makes an important point about housing need that the Minister, to be fair to him, also addressed, and I will move on to that in a moment. I will not say what grade I got in my politics A-level—[Interruption.] Let us just say that it probably would not impress the Education Secretary.
We share the anger of people whose properties are damaged or vandalised by squatters. That is always wrong, and it is right to decry such behaviour. It is also right to say that there are, for want of a better term, lifestyle squatters—people who are part of the something-for-nothing society. We disagree with that, and we support the criminalisation of their activities. However, many squatters are homeless, and often have severe mental health or addiction problems.
It may be a sign of the Government’s topsy-turvy logic that in one part of the Bill, which we support, they seek to divert those with mental health and drug problems from the criminal justice system, but this part may criminalise those very people. At the same time, we are seeing some of the most swingeing benefit cuts in history. Housing benefit has been mentioned. In constituencies like mine, thousands of families will be forced to move because of the cuts in housing benefit, or may lose their properties. Incompetence by the Department for Work and Pensions and its private sector agents, such as Atos Healthcare, is causing a rise in poverty and homelessness. We are seeing a massive increase in appeals on welfare benefits, and 170 extra staff have been hired by first-tier tribunals to deal with those appeals, many of which are successful. That is one reason why we oppose the Government’s proposals on social welfare legal aid.
I wish that yesterday we had had the luxury that we have today—a timetabled programme with knives to grandstand some of the Government’s proposals. The House is thinly attended and the debate is frankly low key, whereas yesterday the Government engaged in talking out important measures on which many hon. Members wanted to speak. I noted what the Secretary of State, or it may have been the Under-Secretary of State for Justice, the hon. Member for Huntingdon (Mr Djanogly), said about our debates tomorrow. I hope that we will have the debates that we want tomorrow, including those on part 2, and that Government Whips will not employ their tawdry tactics again.
Some 40% of homeless people have squatted, as my hon. Friend the Member for Islington North (Jeremy Corbyn) said, and 6% of homeless people are squatting at any one time. There is a significant prevalence of mental health problems, learning difficulties and substance addiction in those who are homeless.
This afternoon, I opened a new project for homeless people in my constituency. Very experienced people from organisations for the homeless—they were not trying to be party political in any way—asked me a question that I could not answer. They said that the Work and Pensions Secretary talks about an underclass, or a feral class as the Justice Secretary also said, and says that the Government want to take action to help problem families and to relieve poverty at the bottom of society, so why do they wish to take measures that could criminalise those same people?
The Government are clearly being tough on squatting, and we have no objection to that, but they are being incredibly weak, contrary to what the Minister said, on the causes of squatting. In fact, their impact assessment gives a hint of who the people are who often end up squatting. It says:
“Local authorities and homelessness…charities may face increased pressure on their services if more squatters are arrested/convicted and/or deterred from squatting. Local authorities may be required to provide alternative accommodation for these individuals and could also face costs related to increases in rough sleeping in their areas. An increase in demand for charities’ services (food/shelter etc.) may negatively impact current charity service users…There may also be a cost to society if this option is perceived to”
be
“unfair and/or leads to increases in rough sleeping.”
The pièce de résistance is:
“It has not been possible to quantify these costs.”
The Government accept that there will be pressure on services, but say that they cannot quantify the cost. Why? They do not know how many people squat. I believe—the Minister will no doubt correct me if I am wrong—that the civil servants have used figures from squatters’ organisations to estimate how many squatters there may be. The Government’s estimate is that there are between 340 and 4,200 criminal squatting cases across England and Wales, and that the Crown Prosecution Service will charge between 850 and 10,600 offenders.
The Government accept in their response to the consultation that
“as with any criminal offence there would be an operational discretion as to whether a person should be charged with an offence.”
I think that goes without saying, but they say it in particular with respect to hikers who take refuge in a house to take shelter from the elements. [Interruption.] I am glad that the Government Whip, the hon. Member for Lichfield (Michael Fabricant), is interested, and I will say a bit more about that. It is a problem that the Government see as a possible unintended consequence of the new legislation. They state:
“The Government accepts that hikers who occupy a residential building in these circumstances might be committing an offence as a result of its proposals. In practice, however, it seems unlikely that the property owner would make a complaint”,
so that is all right. They continue:
“Even if a complaint were made, as with any criminal offence there would be an operational discretion as to whether a person should be charged with an offence. The Government considered creating a ‘reasonable excuse’ defence to allow for this type of situation, but was concerned that such a defence would be open to abuse and might render the new offence toothless.”
I have seen some pretty shoddily justified legislation in my time, but that really is an “on the one hand, on the other hand” explanation.
I hope that at the very least the Minister will tell us whether his intention is to apply the discretion that he wishes to see applied to hikers, an important category of citizen, to those who occupy empty properties out of desperation—the people the Government’s own impact assessment states would now have to resort to sleeping rough. They could include people with mental health or addiction problems whom it may be more appropriate to treat than to detain in jail. I have heard the Minister make that argument in another context in Committee. I note that this farrago and confusion would not have happened had the appropriate parliamentary process been followed.
It is common practice in a Second Reading debate—this increasingly feels like Second Reading, when we see measures for the first time and pass general comments on them—for a proposal that has some merit but needs refinement to be allowed through. That is what we intend to do today. We support the idea that there may be categories of squatters who need to be criminalised, although we say that the current criminal law is not being properly used in that respect.
I hope that the Minister will not think that our decision to allow matters to proceed is an unthinking endorsement of his position. Those who think squatting an acceptable lifestyle choice should be under no illusion about the fact that we disagree, and we support the criminalisation of what is, frankly, arrogant behaviour. For that reason, we believe it is right to allow the matter to be scrutinised in another place. However, there remain issues to consider and more thought and deliberation to be done before the new clause reaches the statute book.
I hope that the Government will at the very least consider the issues that I have raised today, and those that other hon. Members will no doubt raise, and keep them in mind when they feel the endorphin rush of a few cheap tabloid headlines again. I hope that they will think seriously about all the implications of the new clause and come up with something a little clearer, better defined and less vague.
The Minister will no doubt say that I am giving less than wholehearted support. Not true. We support the Government’s intention, but we believe that because they have once again rushed matters towards the statute book, they have not given them proper and clear consideration thus far. Once again, they leave it to another place to do that.
Mike Weatherley (Hove) (Con)
Today is a good day for the law-abiding citizens of this country and a bad day for those wanting something for nothing. Since my election nearly 18 months ago, I have been campaigning to criminalise squatting, including in an excellent Westminster Hall debate with the Minister about a year ago. I congratulate the Government on tabling the new clause.
I wish to dispel once and for all the myth that squatters and homeless people are one and the same. My Hove and Portslade area contains both wealth and deprivation. It is a Mecca for every character imaginable, and that is what makes it such a wonderfully diverse place to live. Homelessness is an issue, and we have a fantastic support network of local charities, including Emmaus, Brighton Housing Trust, the YMCA and Off the Fence, which looks after a great number of vulnerable people through Project Antifreeze—indeed, I will visit Off the Fence again this Friday. It is our duty to look after homeless people. I fully support all the excellent work being done and the Government’s commitment to do even more.
John McDonnell (Hayes and Harlington) (Lab)
I want to follow on from the previous debate and the discussion of the method of making legislation. Making new laws, especially ones that can put people in prison for up to a year, is an extremely serious matter, so judgment cannot be undertaken or driven by anecdote, prejudice or media headlines.
There are questions that have to be considered for wise judgment. What is the problem to be addressed? Is it real? What is the scale of the problem? Is there an existing law, and if so, is it defective in a way that renders it ineffective? If we are to make legislation of this sort, what are the consequences of creating a new crime for the people seeking a remedy in this way and for those who will be brought into the criminal justice system? What are the consequences and implications for the resources, operations and standing of the law enforcement agencies and our communities overall? Finally, during my years in the House, I have learned another key question: will it cause more problems than it seeks to cure?
Is there a significant problem with squatting in residential properties? To be frank, the evidence produced by the Government so far has not demonstrated this. There have been some highly publicised cases in the media and statements by MPs and Ministers, but no hard evidence. The Government’s consultation paper acknowledged the lack of statistical evidence. For instance, the equality impact assessment states that
“there is no consensus on the true extent of squatting, or the proportion of squatting that is in residential buildings.”
Based on a number of assumptions—I agree with my hon. Friend the Member for Hammersmith (Mr Slaughter) that many of them were supplied by squatters themselves or housing campaigning associations—the Government estimate that there might be between 200 and 2,100 criminal squatting cases in residential properties across England and Wales. That is a tenfold range, demonstrating the inexact nature of the Government’s evidence.
In the response to the Government’s consultation, only seven victims of squatting in residential properties came forward. The lack of evidence has led the Law Society to object to changes in the law that are not evidence-based and the Magistrates Association to express its reluctance to see new laws created without proper analysis. This is the first time that I have been in alliance with the bench.
Is the current law defective? Even if only a small number of people are affected, it is right that we sympathise with them and ensure that action is taken to protect them. If the law is defective or lacking, there should be a remedy, but most legal authorities that commented during the consultation felt that the existing law was sufficient. As has been said, under existing law, it is already a criminal offence for a squatter to refuse to leave someone’s home or a home that they are about to move into.
Mike Weatherley
Would the hon. Gentleman not agree that the squatters should not be there to start with?
John McDonnell
I shall move on to that; I understand the hon. Gentleman’s point.
Under section 7 of the Criminal Law Act 1977, it is already an offence for any person on a residential premises not to leave
on being required to do so by or on behalf of…a displaced residential occupier…or…protected intending occupier”.
According to the response to the consultation, the Metropolitan police said that
“the law was broadly in the right place and that the existing array of offences allowed them to tackle the worst cases of squatting (e.g. where squatters cause the rightful homeowner to be displaced).”
The Law Society and the Criminal Bar Association confirmed the same view. The Law Society stated:
“The consultation paper acknowledges that there are no reliable data on the nature and extent of squatting. In the absence of any such evidence, we have no reason to believe that the existing law does not deal adequately with squatting.”
It went on to describe the operation of section 7 and confirmed that no evidence had been produced to demonstrate that it did not work adequately when properly used. Those concerns were confirmed by the Criminal Bar Association.
The Law Society reported that section 7
“is not often used, as squatting happens infrequently, but where it is our members”—
that is, the lawyers concerned—
“report that it is extremely effective.”
These are the responses to the Government’s own consultation.
Everyone in the House has to support evidence-based policy making. From all the evidence and information to hand, including from the Government’s own consultation and impact assessment, we must conclude that there is no evidence of a problem on any significant scale, that there is conjecture that it exists and that in the judgment of practitioners—not just the advocates, but the law enforcers—the existing law is sufficient.
Tracey Crouch
Does the hon. Gentleman not consider that one of the flaws with the current legislation is section 6 of the 1977 Act, which allows squatters to claim rights to a property, thereby making it difficult for owners to get rid of them?
John McDonnell
I cannot accept that when section 7 enables people to request squatters to leave. If they do not, they are committing a criminal offence, and the law should be enforced by the police under existing legislation.
John McDonnell
The point made by most people in the consultation, including the police, is that if elements of section 7 need tidying up, there should be a proper discussion about that. However, to criminalise an entire group in society is to over-react to a problem that is relatively minor, although I do not wish to underestimate the problem that appears to be caused to some home or property owners.
Jeremy Corbyn
Will my hon. Friend inform the House exactly when new clause 26 was published and how long people have had to comment on it, including those from the Law Society and elsewhere?
John McDonnell
I will come to that, because we need to learn lessons across the House about the appropriateness of how we have legislated in recent years. I have sat in this place and seen bad law produced as a result of rushing things—it happened under the last Government and it is happening under this one—and a lack of judgment about how much consideration each piece of legislation needs.
John McDonnell
I will, but I would like to press on, because others want to speak.
Kelvin Hopkins
Is there not a hint of short-term populism in what the Government are doing? Does my hon. Friend think that even the Government might come to regret it if they press their case?
John McDonnell
I went through 13 years of new Labour, so commenting on short-term populism might not be the most appropriate thing. I would not say: “A plague on all your houses!”, but let us all learn a few lessons.
Andrew George (St Ives) (LD)
Just so we are clear about the hon. Gentleman’s position, does he agree that it is unacceptable for anyone to be made homeless as a result of the kind of actions that we are talking about? Does he also agree, as a consequence, that passing new clause 26 in its current form would place an additional burden on the legal aid budget?
John McDonnell
I wholeheartedly agree.
Let me press on, because others want to speak. Clearly there are a small number of cases, which we have already identified, that have caused genuine concern. The problem appears to be not with the existing law, but with its operation, as the consultation has made clear. Annington Holdings plc, a property holder of considerable size, said:
“In Annington’s experience enforcement is the crux of the problem; our past experiences have shown that delays arise in removing squatters from properties due to limitations on police resources.”
If the current problem is with police resources, the question—which has been raised by the High Court enforcement officers, the Criminal Bar Association and the Law Society—is whether the police would have the resources to enforce the law if a new offence is created, when they appear to be unable to enforce it against the existing offences. The Met has acknowledged that and is seeking to address it, as my hon. Friend the Member for Hammersmith and the Minister have said. The Metropolitan Police Service said in its statement that there was a lack of training and practical knowledge on the law on squatting, particularly section 7 of the 1977 Act, which may be a barrier to effective enforcement, and that it was conducting further training to address the issue.
By criminalising squatting, the new clause certainly does not appear to be needed, but it will have consequences if introduced, some of them unintended. The new law will have consequences for those who will be brought into the criminal justice system for the first time, and it is worth repeating who those people are likely to be. The housing charity Crisis commissioned research into squatting from the centre for regional, economic and social research at Sheffield Hallam university, which was published only a month ago, in September. It found that, by and large, squatters were homeless people. The House of Commons Library note sets out for Members that
“squatting is a common response to homelessness”,
and that
“most homeless people who squat try other avenues to resolve their housing problems before squatting”
Kate Hoey (Vauxhall) (Lab)
I entirely support what my hon. Friend is saying. Does he agree that this will be particularly bad law because it is going to be retrospective? It will apply to people who are squatting at the moment, and who thought that they were doing so legally. The House should not be pushing through this legislation in this ridiculous way, without scrutiny.
John McDonnell
I believe that it will damage a large number people’s lives, some of whom are squatting at the moment for no other reason than that they are homeless. They will be criminalised by this retrospective legislation, which is something that I thought Members of all political parties across the House had rejected.
What will be the effect of the new law on squatters’ lives? We know that many, although not all, vulnerable people live chaotic lives. They will be fined up to £5,000 or face up to a year in prison. Not many will have the resources to pay the fine, so prison will be a reality for a significant number of them. I have heard no estimate from the Government of the extent to which this will swell prison numbers. I fear that people will be drawn into a cycle of squatting and going to prison. One third of people coming out of prison have no home to go to, so they will get back into the squatting cycle.
I hope that the House will not pass the new clause into law, but if it is determined to do so, I have tabled amendments to ameliorate its impact. Amendment (a) would provide that squatting remains a civil matter in all residential buildings that had been left empty long term and were not being brought back into use. This would ensure that residential buildings that had been lived in recently or that were being brought back into use would be covered by the criminal law. That includes the question of refurbishment that was raised earlier.
I have looked at the statistics cycle over the past five years and found that, on average, between 650,000 and 700,000 residential properties stood empty during that time. Most are private properties, and 300,000 have been empty for more than six months. When there are 40,000 homeless families, 4,000 people sleeping rough in the capital, and 1.7 million households on waiting lists, desperate for decent accommodation, it is immoral that private owners should be allowed to let their properties stand empty for so long. My amendment could force those irresponsible owners to bring their properties back into use. More importantly, it would mean that desperate people who need a roof over their heads would not be criminalised for resorting to occupying a property that was being wasted by its owner.
It is not for me to criticise the Speaker, of course, but I regret that my amendment (b) was not selected. I had hoped to try to persuade the House to protect the most vulnerable people in our society from being dragged into the courts, but I am sure that there were good reasons for not selecting it, and perhaps it will be debated in another place.
My amendment (c) would address the fact that the present wording of the new clause criminalises those who are currently squatting in a residential building. It is one of the principles of good government that retrospective legislation is unjust. I should like to quote from article 11, subsection 2, of the universal declaration of human rights:
“No one shall be held guilty of any penal offence on account of any act or omission which did not constitute a penal offence, under national or international law, at the time it was committed.”
There is a basic injustice about retrospective legislation, and I hope that the House will accept that and address it at some stage in this Bill’s consideration.
Finally, there is a mounting housing crisis. I criticised the last Government as much as this one for their failure to address the supply of decent housing. We have got the return of appalling housing conditions in my constituency—overcrowding, high rents and the return of Rachmanite landlords. People are desperate and will resort at times to any means to put a decent roof over their and their family’s heads. Squatting is sometimes the only way. People should not be criminalised for wanting a decent home.
The new clause is being rushed through Parliament. The Secretary of State launched in July a consultation on a range of proposals to criminalise squatting. The consultation ended in October. More than 2,000 responses were received, 90% of them opposed to the Government’s proposals. Clearly, there has been no serious consideration of the consultation responses because the clause was brought forward only three weeks after the consultation closed. This is rushed legislation, and rushed legislation, as I have said, is generally poor or bad legislation. The consultation, if it had been properly taken into account, made it clear that the current laws were sufficient to deal with any abuse. Professionals, police and others have told us so. My fear is that we now risk putting people on the streets and possibly into prison because our society has failed to provide them with a decent home. If this clause goes through tonight, I believe that many will regret it.
I give notice that I wish to press amendment (a) to a vote.
Mr Deputy Speaker (Mr Nigel Evans)
Order. As Members can see, a considerable number still wish to participate in the debate. As we want to listen to the Minister and the knife falls at 10 o’clock, I call for brevity and short speeches.
Mike Freer (Finchley and Golders Green) (Con)
I commend the Minister for listening to our concerns and introducing these proposals. I also pay tribute to my hon. Friends the Members for Hove (Mike Weatherley) and for Bury North (Mr Nuttall), as we have been pressing the Government for action for some time. I am grateful to the Minister for his courtesy on this issue.
Labour Members commented that they did not see a need for this Bill, as they thought that there was some parallel Bill. I have to say, having listened to some Labour Members, that they seem to be living in a parallel universe. If there is not a squatting issue, why is it that three houses in my constituency were squatted in one week?
My concern is about the residential squatters and the homes they squat, which are often not derelict or abandoned properties. Those properties can be dealt with. Councils such as my own London borough of Barnet routinely issue improvement notices. If landlords do not bring the properties up to standard or back into use, they use the threat of a compulsory purchase order to bring the landlords back into line. On every occasion I have seen that used, the property has been refurbished and brought back into use. There are methods of dealing with abandoned and derelict properties without giving a charter for squatters.
The issue of residential squatters is not just one about mansions or large houses lying empty for year after year. The houses to which I refer in my constituency have been refurbished between purchase and occupation. These are houses that are going through probate or whose owners are on extended holidays. When the owners come home, they find their property occupied by somebody else, who is not necessarily homeless. As we have seen in the papers recently, it is often organised gangs that occupy family properties that are clearly occupied, clearly in use and clearly not abandoned.
I listened to what Labour Members said about squatting already being a criminal offence and the police having powers to deal with it. If so, why is it on every occasion in my constituency that the police have stood by and said, “Sorry, guv, but it is nothing to do with us; it is a civil matter”? The current law is defective; the current law needs clarifying; and these proposals do that.
I was intrigued to hear the argument that homelessness is some excuse for squatting. Is it okay for people to say, “I don’t have a house, so I’ll have yours. Thank you very much.”? I am not sure whether that is what Labour Members are genuinely saying.
We heard the argument that pennilessness is an argument for squatting. Is it also an argument for mugging? If I am penniless and go out and mug somebody, is that all right? Is that what Labour Members are really saying?
I have read the amendments, and I understand the problems of those who have been in shelters for the homeless or domestic violence refuges or have received mental health support. However, I also know that many people in need of mental health support squat not because they are not being given that support, but in order to evade the very support they need. If we can deal with squatting, those with mental health problems will have a better chance of benefiting from the intervention that they both need and deserve.
Hard-pressed taxpayers and home owners who have worked hard, have bought their houses and pay their mortgages are demanding change and protection. I support the new clause because it will provide the very necessary protections that those people require.
Mr Deputy Speaker (Mr Nigel Evans)
I thank the hon. Gentleman for his brevity.
Jeremy Corbyn
Like other speakers, I shall be as brief as possible, because a good many Members clearly want to say something about this issue. I commend the amendments tabled by my hon. Friend the Member for Hayes and Harlington (John McDonnell), the way in which he presented them, and the background information he provided.
New clause 26 first saw the light of day only a few days ago. This is effectively a Second Reading debate, but it provides the only chance that the House will have to discuss a major change in legislation that will result in criminalisation. I predict that in years to come, Government and, indeed, Opposition Members will complain that a person has been criminalised because they were homeless—that a person who occupied someone else’s house was put in prison for a year, which would cost the rest of the community about £50,000.
This country has a long and chequered history when it comes to squatting. It goes back to the Forcible Entry Act 1381, which became law during the Black Death. The issue has arisen time and again during periods of great stress: it arose at the end of the Napoleonic wars, at the end of the first world war and at the end of the second world war, when there was widespread squatting because of a terrible shortage of housing.
The Criminal Law Act 1977, which I mentioned in an intervention earlier, was introduced after a great deal of consultation by the then Labour Government. There was a fair amount of opposition to the legislation, which distinguished specifically between the act of taking someone’s house when that person was occupying it and the act of occupying a property that was being kept empty. The property might be empty as a result of the inefficiency of a local authority or housing association—or, in some cases, a charitable landlord—but more often it would be kept empty deliberately while a property speculator waited for its value to rise before seeking to possess it and sell it to someone else; and, at the same time, a large number of people were homeless on our streets.
Crisis and other charities have produced interesting statistics and arguments. It has been claimed that 40% of homeless people in the country have squatted at some point, and that because the housing crisis means that there will be more people on the housing waiting lists and more without access to houses, there is likely to be more squatting.
Let me tell the hon. Member for Finchley and Golders Green (Mike Freer) that it is very easy to stand up in the House and say that no one should ever occupy any empty property, but it is another matter for someone who is homeless, has applied for local authority housing but is deemed not to be vulnerable as a single person, and is therefore not eligible to be nominated for a council or housing authority property. Those who try to rent a property in the private sector anywhere in London will find that renting a one-bedroom flat costs a minimum of £150 to £200 a week, renting a two-bedroom flat costs £250, and renting a house costs between £400 and £500. When the very same Government who are lecturing someone about occupying a property that has been deliberately left vacant are preventing that person from obtaining housing benefit to pay such rents, what can the person do? It is all very well for us to lecture, but what can that person actually do?
I believe that the existing law can deal with most of the concerns that have been expressed. There are some cases in which people have behaved disgracefully and driven others out of their homes when they should not have done so, but the 1977 Act is designed to deal with such cases. They can be dealt with through selective, specific and well-thought-out legislation, rather than through the approach that is being adopted in the House this evening.
We shall press amendment (a), tabled by my hon. Friend the Member for Hayes and Harlington, to a Division. It covers only residential property that “has been empty for six months or more”. Parliament has a responsibility to recognise that there are 700,000 empty properties across the country and a very large number of people who are either homeless and sleeping on the street, sofa-surfing before they run out of friends entirely, sleeping in cars, or just trying to get somebody to put them up for a night before they move on. I assume all Members have met such people in their advice surgeries. What do we say to them? Do we say, “It’s your problem; you go and solve it,” or are we a society that tries to help everyone and make sure everyone gets somewhere to live and has a secure roof over their head?
Tom Brake
Squatting clearly has a devastating impact on private owners, and it can also have a devastating impact on councils. When I was a councillor in Hackney back in the late ’80s, it was eventually discovered that many council properties were squatted, and that in many cases council employees had sold the keys to the squatters. We clearly need to tackle squatting, therefore. I would have welcomed a fuller debate on the matter, however, and I now want to raise a few points that would, perhaps, have been more pertinently raised in Committee, if that stage had taken place.
The first aspect of new clause 26 on which I seek clarification is proposed new subsection (3)(b), which states that
“a building is ‘residential’ if it is designed or adapted, before the time of entry, for use as a place to live.”
Could a commercial building be so “designed” or “adapted”, and what would be required for that to be achieved? Would simply placing a bed in a commercial premises be enough for it to be “designed” or “adapted” as “a place to live”?
The second point on which I seek clarification relates to proposed new subsection (4) on the “permission of a trespasser”. If a person has not been informed by someone who is a trespasser that they are in a building that they are squatting, and that person then squats in that property, would they be guilty of the offence of trespass? I hope the Minister can provide some clarity on that point.
At the risk of the Opposition accusing me of trying to have my cake and eat it, I will say that the hon. Member for Hayes and Harlington (John McDonnell) has raised some interesting points in amendment (a). Setting a bar of six months would not be appropriate, however, because there are many circumstances in which people might legitimately choose to leave a property empty—for example, if they are abroad for a year. However, I am sure that every Member of Parliament here tonight probably has one, two, three or possibly more properties in their constituency that have been empty year after year—possibly for decades. I know for a fact that residents living on either side of such properties may prefer to have someone in them so that the property is not allowed to fall down, be taken over by foxes, have trees growing in the front room and so on. I accept that the difficulty lies in trying to distinguish between those cases and cases where a squatter takes advantage of a property. The amendment raises an interesting point and I hope that the Minister will be able to respond to it.
Nadine Dorries (Mid Bedfordshire) (Con)
Is the right hon. Gentleman truly saying that neighbours on either side of a property would prefer to have squatters in it than to have foxes in it or trees growing in it? Is that actually what he is saying?
Tom Brake
I think that the hon. Lady may, if she examines her constituency cases, find some examples where people are frustrated at the length of time—it could be years—that a property next to theirs has been empty and has been allowed to fall into disrepair, with all the environmental and other dangers associated with that.
Simon Hughes (Bermondsey and Old Southwark) (LD)
I just want to try to disabuse the hon. Lady of a simplistic view about this. The council had determined to knock down a block over the other side of the river—the Pullens estate in my constituency, which is a fantastic old estate—but it was squatted, as were some estates in Surrey Docks. Had that not happened, these places would have been demolished. They were squatted, they were kept, they have been refurbished, and they are now properly let and in use. So this is not nearly as simplistic as it has been made out to be, and often people would rather a property was occupied than sitting empty.
Tom Brake
I thank my right hon. Friend for his intervention, which provides its own explanation.
The final point that I wish to make is about the retrospective nature of the provision as, again, it is an area that the Government need to examine carefully. As we have not had an in-depth debate here tonight, I suspect that it may well be a point that is examined much more closely when the matter is raised in the other place.
Kate Hoey
I, too, wish to congratulate my hon. Friend the Member for Hayes and Harlington (John McDonnell) on the way in which he spoke, because this issue too often becomes one of exaggeration, where inaccurate things are said on both sides. He gave a very reasoned outline of why this coalition Government are rather silly in proposing this measure at this time and in this way. I, too, have been in this place a long time and I have seen legislation go through as a knee-jerk response to something that has happened. Very often people later regret very much that such legislation went through.
It is quite wrong that something that has been introduced so recently, and where a substantial number of people in a consultation—90% of them—were opposed to it, is being put through in this way. As everyone else has said, this is, in reality, a Second Reading debate. No scrutiny will be provided in the House of Commons on the detail, so all these questions are being raised by different people about different aspects of it and we will not get a full answer. We are abrogating our duty and our responsibilities as Members of Parliament if we allow this measure to go through and hope that it will be dealt with in the other place. I am disappointed that Labour’s Front-Bench team is not taking a more robust view on this measure. There is always a danger for politicians in that regard, because they may worry about what the headline will say, but sometimes the headline is totally inaccurate and sometimes it has been devised because of the inaccuracies, the half-truths and the mistruths that have been put around over a period of time. Even at this stage, I hope that the Labour Front-Bench team will consider amendment (a) seriously.
I believe that the retrospective nature of the measure is quite wrong. I also believe that there is squatting and squatting. The public see the difference in the kind of squatting that we have all condemned, whereby people take over someone’s house because they are away on holiday. However, there is already a law to prevent that from happening and those Members of Parliament who say that that has not been observed in their area should talk to the police because it means that the police are not enforcing the law.
The kind of squatting that I support is the kind that the right hon. Member for Bermondsey and Old Southwark (Simon Hughes) mentioned, when large blocks of flats and houses that have deliberately been emptied early by a local authority or a private developer sit empty for months or years waiting either for some work to be done or to be knocked down. I see absolutely no reason why people who have come to London as the capital city of their country to try to get work and to live but who have nowhere to live and no chance of getting a local authority flat or of affording a private sector property should not live in those empty properties. Most of those squatters would be perfectly willing to sign something saying that they will move out as soon as work is to start. Instead, we see such places being left empty for years.
I am very sad indeed that we are seeing this knee-jerk response and that the Government are trying to introduce this measure so quickly. They will live to regret it and I hope that even tonight, at this late stage, Members who have come along thinking that there was no debate to be had and that this was a matter of, “Let’s just get this through”, will think very carefully and will at the very least support the amendment of my hon. Friend the Member for Hayes and Harlington.
Mr David Nuttall (Bury North) (Con)
I rise to support new clause 26 and I start by paying tribute to my hon. Friends the Members for Hove (Mike Weatherley) and for Finchley and Golders Green (Mike Freer) who, along with myself, have moved this matter up the agenda. I am grateful that the Minister has listened and that we now have some clarification over this area of law.
I have practised as a solicitor and I can tell the House that, regardless of the 1977 Act, this area of law is completely unclear. It is unclear to the police, to lawyers and to home owners and it certainly is not working. Millions of home owners will be grateful that the new clause is, I hope, going to reach the statute book. There could be nothing worse for someone returning from a holiday than to find that their home has been occupied by squatters. Insult is then added to injury if they are told by their lawyer that they need to embark on a long and complicated civil law procedure, and a costly procedure at that.
I note the point that has been made by Opposition Members about there being doubt about the exact numbers of properties that are occupied by squatters, but the fact remains that if a home owner returns to their property to find it occupied by squatters, it is 100% occupied by squatters and the overall statistics are, frankly, irrelevant.
Let me make one further point about the amendment on which I understand we are to divide. It provides that an offence would not be committed
“where the building has been empty for six months or more”.
One point that has already been touched on is of real concern to many people. When a family member dies and leaves a property empty the personal representatives might have to wait many months—often longer than six months—before they can obtain a grant of letters of administration. There are many instances of properties being occupied by squatters in that time and, for that reason if no other, I hope that the House will reject the amendment. The new clause is a great step forward. It is often said that an Englishman’s home is his castle and I hope that this will help to reinforce that.
Caroline Lucas
I share the concerns that have been expressed by many Opposition Members about the Government’s proposals further to criminalise squatting. I want to highlight just a few of them. My first concern is the justification for the proposals. Squatting can have devastating impacts, and I want proper redress and protection for anyone who returns from a two-week holiday to find their house squatted, or for someone trying to sell their house who leaves it empty only to find squatters have moved in. But the law already stands to protect people in those instances. The major problem in dealing with cases of squatting is not the law itself but the enforcement of the law, including the time it can take for the courts to issue an interim protection order, for example.
In theory, there is no reason why such an order cannot be issued far more swiftly. In practice, I accept that things can take far too long, often compounded by what appears to be a lack of understanding of the law by many police, who are the first port of call for home owners. That is unacceptable and it needs to be addressed, but those delays in implementing the law often result in cases being highlighted in the media, wrongly creating the impression that home owners are not protected in any way from squatting.
The law clearly states when a criminal act has taken place. For example, section 7 of the Criminal Law Act 1977 makes it clear that squatters asked to leave by home occupiers are committing a criminal offence if they fail to do so.
Mike Weatherley
The hon. Lady is under a misapprehension. The person who comes back from holiday and finds their home squatted has no legal redress other than to ask the squatters to leave. The squatters are already in that property; they should not be there while the owners are on holiday.
Caroline Lucas
The legal redress is to ask them to leave. If the squatters refuse to leave, they are committing a criminal offence. That is the point.
In September 160 housing lawyers wrote an open letter accusing Ministers and politicians of distorting public debate by making inaccurate statements about the law on squatting. I claim that that is exactly what is going on in the House tonight.
Even the Metropolitan police and the Association of Chief Police Officers believe that the current squatting law is sufficient and that a new one would be a waste of police resources that could impact negatively on community relations. We need to see instead efforts increased to enforce the current law properly and swiftly, including better training for police officers.
As many Opposition Members have said, many homeless people are pushed into squatting and do not do so out of choice. The appalling and often dangerous conditions in many squats are hardly attractive. Research by Crisis shows that 40% of single homeless people escape the horrors of rough sleeping by squatting, mostly in disused properties. These are the people who are most likely to be affected by the proposed new law, and who will be unnecessarily criminalised.
Often homeless people will suffer from multiple diagnoses, with a combination of mental ill health, substance abuse and other problems. The challenge is to ensure that practical measures are put in place so that people with the most complex multiple needs can be supported more effectively and squatting avoided in the first place.
Joan Ruddock
(Lewisham and Deptford): In my surgeries now for the first time I am seeing people who are not in the categories that the hon. Lady has just described. I am seeing people in work who are losing their accommodation; they cannot keep going in the private sector on the wages that they earn. Those people are becoming homeless without any access to other provision, and some of them will turn to squatting, and I can well understand why.
Caroline Lucas
That is exactly the point I was about to come on to. In my surgeries in Brighton, Pavilion we are seeing levels of homelessness rising. People are coming to me in exactly the situation that the right hon. Lady describes. According to figures from the Department of Work and Pensions, 840 people in Brighton and Hove risk losing their homes as a result of the proposed changes to the shared accommodation rate of housing benefit, making this area of Brighton one of the worst affected in the whole country. So Government efforts must focus much more on tackling the root cause of the problem, not on penalising vulnerable homeless people, including those living in buildings that have been empty for long periods and are not about to be brought back into use.
Part of the solution is investment in affordable housing and so, too, are measures to bring empty properties back into use as soon as possible. Brighton and Hove city council was named 2011 practitioner of the year by the Empty Homes Network for bringing 154 properties back into use over the past 12 months alone. The council’s amazing success is down to the hard work it has put into identifying empty private properties and its commitment to working with the owners of those properties where possible.
Insufficient work is still being done about empty properties nationally. The Under-Secretary of State for Communities and Local Government, the hon. Member for Hazel Grove (Andrew Stunell), admitted in response to my oral question that only 46 empty home management orders had been issued in the full five years since they were brought in. That and other steps to tackle the lack of affordable housing in my constituency and elsewhere must be given far more priority than playing political football with the roofs over people’s heads.
As many other Members have pointed out, the way the proposal has been brought to the House is completely unacceptable. To say that it was rushed is no exaggeration. This is not proper scrutiny; laws made in this way can only end in problems. The Government’s consultation on squatting closed only three weeks ago and I am sure I am not the only person who suspects that the 2,217 responses have not yet been fully analysed, especially as I understand that more than 96% of them expressed real concern about the impact of criminalising squatting. What is more, the option we are asked to consider today was not even included in the consultation.
In conclusion, there is no denying that some high-profile cases raise serious concerns about the need to enforce better existing laws on squatting, but criminalising vulnerable homeless people is inhumane, undemocratic and, crucially, unnecessary.
Mr Speaker
Order. Before I call the next speaker, I point out that I think the House would expect the Minister to have five minutes to respond to the debate.
Mr David Ward (Bradford East) (LD)
Thank you, Mr Speaker, for the four minutes.
A lot has been said. We have heard about parallel universes; indeed, we come here from different parts of the nation to offer different views. We have heard that the Englishman’s home is his castle. It is awful for people when their home is broken into; it feels desecrated and dirty. Where have the intruders been and what have they been up to? It is an awful feeling and we understand it, but when I heard some of the comments from Government Members I thought about my perspective—my universe.
When we talk about squatters, people think in terms of their own home, but that is a far cry from my experience of squatters. I am talking about people in places where there is no electricity, gas or water. There is no toilet and in some cases there is not even a roof. The properties are cold, damp, dark and very dangerous, with rats, stench and disease. They are also very violent places.
What about the squatters? We are not talking about hippy communes, with bean bags, beer and loud music, or about scroungers who ought to pull their socks up and get a job or go back home. We are talking about people without friends or families, and possibly without futures. In my experience, no one squats if an alternative is available.
That may not be the experience of other people, but it is mine. Debate on the provisions on legal aid and social welfare was shamefully evaded last night, but so many people in squats have suffered as a result of the failure of our system. In many cases, the state has put them into that position, whether the health service or the council; 78% of squatters have been turned away by their local authority. The failure may relate to employment support, or people may have just been downright unlucky.
Where on earth is the value in adding a criminal record to the problems those people face? The proposals are irresponsible. They are costly. At a time when we are being asked to do so many things that are unpleasant and unpopular, but possibly necessary for the deficit reduction plan, these proposals would simply add to the costs that we will all have to face, if not in our communities then in Armley prison. It does not make sense. The proposals do not add up.
The two universes could be brought together through amendment (a), which is a compromise that would improve the enforcement of existing legislation, with the back-up of the six-months provision. I shall support it.
Mr Blunt
It is pleasure to follow the hon. Member for Bradford East (Mr Ward), with the undoubted candour that he brought to his remarks. However, I profoundly disagree with him. It is a basic premise that if one takes someone else’s home, one has stolen from them one of the most important things for any of us. I am afraid we are going to part company on that principle, and as he will have heard in my opening remarks, the issue of homelessness has to be addressed in that strategy.
I thank the official Opposition for their support, presented with his usual enthusiasm by the hon. Member for Hammersmith (Mr Slaughter). There was a moment when the charming side of the hon. Gentleman almost escaped—his rather touching revelation about his aptitude for politics when assessed by an external examiner at A-level. For that at least, I am grateful. However, to challenge us about talking business out, when he made a three-hour speech on the first group in Committee, would have come better from someone else.
The hon. Gentleman made an accusation that there was no clarity. There is absolute clarity in what we are doing. To try and escape into the issue of when a bothy is not a bothy, which will not be entirely clear to hikers, was the refuge of the desperate. When people are hiking they are clear where bothies are, and if they are not, they should not be undertaking the hike.
The hon. Gentleman asked about the benefits of the measure and the impact assessment. The impact assessment is clear. It has to identify benefits and potential risks. The benefits section of the impact assessment makes it clear that there could be significant benefits for residential property owners in the form of reduced legal costs in particular. Perhaps that puts into context the lobby by the legal profession. The impact assessment also suggests that if the offence acts as a deterrent, the instances of squatting may decrease.
I am grateful to my hon. Friend the Member for Hove (Mike Weatherley) for his excellent speech and the impressive campaign that he has waged on the issue. He made the point that we owe a duty to the homeless, a view shared by all on the Government Benches. His pertinent challenge to find any case where squatters have improved a property by virtue of their occupation was extremely telling.
In my opening remarks I tried to answer the terms of the amendment tabled by the hon. Member for Hayes and Harlington (John McDonnell), who asked us not to legislate on the basis of anecdote or prejudice. I say to him and to the hon. Member for Vauxhall (Kate Hoey) that the issue is hardly a surprise. It has been around for a very long time. The Prime Minister announced the consultation back in June. We have consulted for 12 weeks, and what we have tabled is a limited proposal. Those on the Opposition Front Bench feel able to support it because it is limited to residential properties.
As I said, we will keep the other areas under review, particularly commercial property. We recognise that that will be more controversial. That is why the proposals are limited to subjects on which we believe there is widespread agreement. In the words of the hon. Member for Hammersmith, those on the Front Bench support criminalisation as it represents arrogant behaviour on the part of squatters, who think they can just take someone else’s property.
The hon. Member for Hayes and Harlington said that only seven victims of squatting responded to the consultation, but a number of local authorities responded and a number of law firms responded on behalf of several of their clients who had been victims of squatting. My hon. Friend the Member for Bury North (Mr Nuttall) made the same point and I am delighted to find myself in absolute agreement with him. Four landlords associations representing a very large membership responded to the consultation and they all shared a desire to strengthen the law.
My hon. Friend the Member for Finchley and Golders Green (Mike Freer) made a powerful case. He made the basic point that what we are addressing here is something that is fundamentally wrong. It is wrong to steal someone else’s home and that is what the new clause will address—