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Rob Marris
I will get on to that. It is interesting and a great declaration, but of course other changes in the past five years or so have led to an increase in insurance company savings of £8 billion in claims costs. That has not been passed on in terms of reduced premiums, which have continued to go up, so I will believe it when I see it. The Government’s own calculations suggest that at least 90% of the money has to be passed through—the term for returning money to policy holders—for there to be any benefit at all.
The Minister for Courts and Justice (Sir Oliver Heald)
As the hon. Gentleman will know, the small claims limit is being put up in all the other jurisdictions, apart from this one, to £10,000. Is it really right that motorists should each pay £40 a year extra, simply so that the sort of solicitors firms he referred to can continue to do work on these very small claims?
Rob Marris
The limit has not gone up in Scotland for personal injury claims. I will get on to the figure of £40 a year and whether it is accurate or not.
So much of this information comes from the insurance companies, which are making huge profits. Premiums have gone up 17.2% in the past year, which I regard as unacceptable. I asked the Association of British Insurers about that on 3 January, and it kindly replied a week later. I am not a statistician, but I have knocked around statistics a lot, and its approach is strange, to say the least. It says:
“Given there is no objective medical evidence for whiplash type injuries, with diagnosis often being made on the basis of the claimant’s word, the ability to prove beyond all reasonable doubt that the claimant has not sustained an injury is both incredibly challenging and expensive.”
That is typically misleading of the Association of British Insurers. The Minister will know, as a distinguished lawyer, that if the insurers refuse to pay out on a claim and the policy holder says the insurers are wrong, the policy holder makes a claim in the civil courts against his insurers, where the test is not about proving something beyond reasonable doubt, but based on the balance of probabilities, which is a much easier test to pass. So that is a straw man, but it is true in terms of criminal actions.
The ABI also states that
“actual criminal convictions clearly only represent the tip of the iceberg, and are not in any way a true reflection of the level of fraud that insurers and wider society face on a daily basis… While some of those cases may have an innocent explanation, many more cases of successful fraud go undetected, especially for whiplash.”
The ABI is assuming what it is trying to prove. It is assuming that there is fraud, but it admits that if there are such cases, they are going undetected. We do not know whether there are undetected cases of fraud or there never was a case of fraud. If it assumes what it is trying to prove, I certainly hope my insurance premiums are not set by insurance company actuaries who take such an approach.
Sir Oliver Heald
That is all very well and good, but the hon. Gentleman must know that the number of road claims has gone up from 460,000 in 2005-06 to 770,000 in 2015-16, and that 90% of them are for whiplash at a time when our roads are getting safer and our cars have seen huge road safety improvements in their manufacture. How can this be?
Rob Marris
It cannot be because the Minister has the figures wrong. The Government’s compensation recovery unit indeed talks of 771,000 claims in round terms, of which 441,000 are for whiplash. That figure has come down by 7% since 2011-12. The overall figure is already coming down, so it is not going in the direction the Minister thinks it is and perhaps he will rethink the proposals.
The ABI says that its statistics
“are therefore intended to provide an indication of the volume and value of fraud detected by the industry. These statistics do not include claims which involve exaggerated personal injury, particularly for whiplash, where the claim has been paid.”
However, it also says that insurers pay out on 99% of claims, so apparently we are talking about the 1% and that is what all these assumptions are based on. That is not a good basis for creating public policy.
Rob Marris
I will reply to the hon. Lady first. I agree entirely with her. I will give way to the right hon. and learned Gentleman, as the Minister, but I will just say that the Ministry of Justice anticipated between 5,000 and 7,000 applications annually. The actual figures are far lower than that. One reason—perhaps the Minister, when he intervenes, can promise to do something about this—is that, understandably, many solicitors are unwilling to make applications to the ECF because it is so bureaucratic, even though this Government say that they do not like bureaucracy; it takes between six and 10 hours just to make the application. The cuts have had far-reaching negative implications for children and vulnerable young people as well.
Sir Oliver Heald
I was just going to ask whether the hon. Gentleman agrees that domestic violence cases are within scope, and that a victim would have legal aid in the way that I outline. As for the exceptional cases fund, which the hon. Gentleman has challenged me to say something about, 1,200 cases a year is the current rate, and 53% are being granted; that is the latest.
Rob Marris
That is helpful, but it kind of makes my point for me. The right hon. and learned Gentleman’s own Ministry—before he was there, I have to say—anticipated between 5,000 and 6,000 such applications. A 53% success rate seems to me, on the face of it, to mean very stringent criteria, given how long a solicitor will spend preparing the application—and they will not get paid for that preparation, which suggests that the solicitor making the application on behalf of the vulnerable individual thinks that there is a very good chance of success. But what do they find? It is about half.
In time-honoured tradition, I will ask the Minister some questions, which I hope he will be able to answer. I did give him some notice of them, but only at noon today, so although he is a hard-working Minister, he may not have had the chance to get on top of them all. On small claims, does the Minister accept that there will not be a level playing field if the proposed changes are introduced, because they will remove funding currently available for injured people to instruct lawyers, leaving them having to act as litigants in person on personal injury small claims?
Does the Minister seriously contend that there is a fraud crisis in relation to workplace injury claims, which the proposed changes would cover, and if he does, which he may, what independent evidence, not from the insurance industry, does he have of such a crisis?
The impact assessment for the proposals says that there will be a cost to the NHS of at least £13 million a year and to the Treasury of at least £135 million a year, and an increase in insurance company profits of £200 million a year. Does the Minister accept that that means that the Treasury will lose out while the insurance industry gains? If he does not accept that, perhaps he could explain why.
Can the Minister say by what date the Department will publish its review of the impact of employment tribunal fees, and what data the Department has on how such fees have affected the use of alternative dispute resolution services? What steps will the Government take to try to ensure that all children and vulnerable young people can get legal aid? The Minister has already mentioned some changes in that regard. Following on from that, will he give a commitment to review the exceptional cases funding system to make it much more accessible, and if he will not, can he explain why not?
Justin Madders (Ellesmere Port and Neston) (Lab)
It is a pleasure to serve under your chairmanship, Mr Davies. First, I congratulate my hon. Friend the Member for Wolverhampton South West (Rob Marris) on calling this incredibly important debate. Although it is a broad debate, I will focus on an area that I have spoken about many times before and sadly find myself having to speak about again—one that, as a former employment lawyer, I know well: the devastating impact that the introduction of employment tribunal fees has had on access to justice.
I will not repeat the entire history of this issue—the Minister knows the landscape well—but I will summarise. In July 2013, for the first time a person had to pay a fee before they could proceed with an employment tribunal claim—two fees, in fact: one at the commencement of the claim and one before the final hearing. Following the introduction of fees, the number of single employment tribunal claims plummeted by 67%, from an average of 13,500 per quarter to just 4,400 per quarter. One of the oft-cited reasons for the introduction of fees was that it would deter vexatious and weak claims, yet the proportion of unsuccessful claims has remained stable. It is therefore clear that all that the fees system has done is deter people who have valid claims from upholding their rights. That conclusion is shared by the cross-party Select Committee on Justice and a range of specialist organisations that submitted evidence to it, including Citizens Advice, Maternity Action and the Bar Council.
The Justice Committee reported that many judges say that they now hear no money claims at all. The report says:
“Prior to the introduction of fees money claims were often brought by low paid workers in sectors such as care, security, hospitality or cleaning and the sums at stake were small in litigation terms but significant to the individual involved. There are few defences to such claims and they often succeeded.”
Have all those employers suddenly changed their behaviour and is everyone now getting paid correctly? No. What is far more likely is that those whose wages are being docked are simply saying, “Well, it will cost me more to go to a tribunal to recover this money than the amount I have lost, so I can’t afford to take that risk.” That, to quote the Prime Minister from just a few days ago, is an example of the
“everyday injustices that ordinary working class families feel are too often overlooked.”
Sir Oliver Heald
Is the hon. Gentleman not forgetting the other measure that was taken, which was to require claimants to go to ACAS? Is he not aware that the number of cases going to ACAS has gone up from 23,000 a year to 92,000 a year, and that the effect has been that about half of the cases have been resolved or dealt with in a way that meant they no longer need to go to the tribunal—so 45,000 cases are dealt with for free?
Justin Madders
The Minister presents those statistics but forgets to mention that the arbitration system with ACAS was actually introduced some time after employment tribunal fees were introduced, so it does not explain the initial drop-off. The Justice Committee said the claim that this has diverted more people to mediation was
“even on the most favourable construction, superficial.”
It is true that there has been an increase in the number of cases going to conciliation, but just 16% have been formally settled by ACAS, 19% proceeded to a tribunal case and 65% were neither settled nor proceeded to a tribunal. What has happened to all those cases?
Despite the overwhelming evidence, the Government refuse to acknowledge the problem, as we have just heard. Last month, I challenged the Under-Secretary of State for Women and Equalities over the outrageous fact that only 1% of women discriminated against at work brought a claim to tribunal. I asked whether she would make representations to the Ministry of Justice about the raft of evidence suggesting that tribunal fees deter genuine complaints. The reply I got was:
“There is no doubt that the number of tribunals has gone down, but in actual fact there is good news here”.—[Official Report, 8 December 2016; Vol. 618, c. 363.]
I fail to see what that good news is.
Perhaps the Government’s own internal review will tell us what has happened to the many complaints that have disappeared through ACAS, if they ever decide to release it. It was commissioned in July 2015; the review was completed within a few months, and it has been gathering dust for over a year now.
Sir Oliver Heald
On a point of order, Mr Davies. The hon. Gentleman is putting forward as an assertion of fact something that is completely incorrect. Is that in order?
Geraint Davies (in the Chair)
It is in order, because it is a matter of debate. Back to you, Justin Madders.
Anne McLaughlin (Glasgow North East) (SNP)
I congratulate the hon. Member for Wolverhampton South West (Rob Marris) on securing this debate and giving us the opportunity to take stock of the human impact of the reforms to access to justice. Every time I think about the way in which this Government have ensured that ordinary people are denied even the opportunity to try to get justice, I cannot help but think of the words my parents used to dread: it’s not fair—and it really isn’t, Mr Davies.
One of the four objectives of the reforms was apparently to
“discourage unnecessary and adversarial litigation at the public expense”.
I cannot disagree with that sentiment, but I have been working with a constituent who some people would argue falls into that category. Indeed, some have written him off as vexatious. There is a Scots word we use when someone has not had access to justice and is like a dog with a bone: the word is “thrawn”, and my constituent has had to be. He is a whistleblower: someone who tried to do the right thing—and trust me, he was doing the right thing. He is someone who believes in justice.
Anne McLaughlin
If the right hon. and learned Gentleman does not mind, I will struggle to get to the end of my speech without fainting. I am not well today. Unless he wants a medical emergency, I will carry on and try to get to the end—do not worry, I am not actually going to faint.
As I was saying, my constituent is a whistleblower trying to do the right thing. In trying to help others find their voice and hold power to account, he appears to have become a victim of it. He told me of repeated bullying in the workplace as a result of the whistleblowing, which continued when he was on statutory sick leave, undermining his already deteriorating mental health. Access to an employment tribunal, secured by legal aid, has been a lifeline, but it has taken long, thrawn years to get to a position where the might of an institution can be questioned. He will have his day in court, but had he lived in England or Wales he simply would not be able to afford it. That is not me saying, “Scotland good, England and Wales bad”; what I am saying is that it is not fair.
It is not fair on the people who in 2015 found themselves unable to access justice. Statistics provided by the TUC and Unison comparing cases brought in the first three months of 2013 with cases brought in the first three months of 2015 showed the following reductions—I think some have been mentioned already—in the number of cases for the most common types of claims: working time directive, down 78%; unauthorised deductions from wages, down 56%; unfair dismissal, down 72%; equal pay, down 58%; breach of contract, down 75%; and sex discrimination, down 68%.
Maternity Action said that since the fees were introduced there has been a 40% drop in claims for pregnancy-related detriment or dismissal. Is the Minister proud of that record? Does he truly believe that all those additional people in previous years were bringing vexatious—or frivolous, as the hon. Member for Wolverhampton South West said—claims?
Another area of law removed from legal aid was housing. My constituent, Maisie, is an elderly woman with a range of health issues that have negatively impacted on her ability to care for herself and sustain her tenancy. After a small house fire, her son moved in to support her. John balanced his own parenting responsibilities to his son from a past marriage with his commitment to his studies and his mother. They lived in cramped and totally unsuitable conditions and found themselves more or less ignored by their housing association, which refused to put in the disability adaptations they so badly needed because they had asked three years previously to be moved. For the housing association, it was simply not worth the money because they were going to move, anyway.
Offers of accommodation were not forthcoming and this 80-year-old woman and her carer son were trapped. They have now been rehoused in far superior accommodation and are very happy, but the housing association did what they could have done three years previously for two reasons. First, my team and the Legal Services Agency, a wonderful Glasgow charitable law centre, quoted the relevant provisions of the Human Rights Act to remind it of its responsibilities; and, secondly, there was a threat of legal action. That was possible because my constituents could claim legal aid, as they lived in Scotland. As it happens, the housing association saw sense and things did not get that far, but if a similar thing were to happen to a constituent of the hon. Member for Wolverhampton South West, the threat of legal action would be taken with a pinch of salt. That is not right. I thank the Legal Services Agency and my team, because now the 80-year-old woman in question can live out her days with her son in comfort and dignity.
On Sunday, the Prime Minister promised to introduce wide-ranging reforms to correct what she called the “burning injustices” in modern society. She proposed a “shared society”; she also proposed to lead a “one-nation” Government, working for all and not the “privileged few”. She said that the Government’s role is to
“encourage and nurture these relationships and institutions where it can, and to correct the injustice and unfairness that divides us wherever it is found.”
How on earth can she square that with taking away the means to correct those burning injustices from all but those who can afford to pay high legal fees? There are many people relying on us in Parliament and willing us to make the right decisions. I want to be able to tell them confidently that when something is unfair, it will be condemned by us in this place and changed. The situation I have outlined needs to be changed.
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Wolverhampton South West (Rob Marris) on securing an important and timely debate. We have enjoyed some thoughtful, passionate and wide-ranging speeches, not least of which was his own tour de force.
As hon. Members have stated, access to justice is fundamental to our society, a key principle of the rule of law and an important component of the right to a fair hearing under article 6 of the wonderful European convention on human rights. It is almost exactly a year ago that we had a debate here, introduced by the hon. Member for Aberavon (Stephen Kinnock), on the same subject. Many of the points raised then still apply every bit as much now, because I do not think there is much doubt that under the present Government and their coalition predecessor, access to justice has become significantly more difficult.
Much of that debate focused, as did the remarks of my hon. Friend the Member for Glasgow North East (Anne McLaughlin) today, on legal aid restrictions imposed under the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and the subsequent cuts to the legal aid budget. I continue to find the thinking behind some of those cuts hard to comprehend. They are indeed counterproductive. The drastic fall in the number of legal aid-funded cases has once again been highlighted today, including even for victims of domestic violence, who in theory should not be excluded. Amnesty International’s recent report, “Cuts that Hurt”, highlighted the particularly poor situation of children and vulnerable people in fields such as social welfare law, immigration law and family law.
As we have heard, the Justice Committee, the National Audit Office and the Public Accounts Committee have all been critical of some of the reforms. One of the most powerful points made by the Justice Committee was:
“The Ministry’s efforts to target legal aid at those who most need it have suffered from the weakness that they have often been aimed at the point after a crisis has already developed, such as in housing repossession cases, rather than being preventive.”
I suspect the Chamber is largely filled with lawyers at the moment, and I am sure that most of us get the point. Surely a better way to reduce legal aid spending is to invest in avoiding expensive crises in the first place.
Ministers argue that it is better to encourage mediation than to provide legal aid for adversarial proceedings. I am all for encouraging mediation. However, legal aid spending should fall as a result of successful voluntary mediation, and it cannot be said that mediation is successful or voluntary if someone is forced into an agreement because they cannot afford to go to court, and perhaps do not even have a proper understanding of their legal rights at that stage.
The other key Government contention in such debates is that the legal aid system in England and Wales has been one of the most expensive in the world. Of course I accept that all Governments have to look carefully at ways to ensure that the budget remains affordable. However, in making that claim, the Government are to an extent comparing apples and oranges. As hon. Members are fully aware, continental legal systems are inquisitorial systems in which less input from legal representatives is generally required but significantly more resources are spent on prosecution services and the courts. Taking all those factors into account, although we can say that England and Wales has one of the more expensive legal aid bills in Europe, the court system overall comes about a third of the way down the European league table.
Equally, there are other ways to keep the legal aid budget under control without having to slice and dice the scope and slash availability. I point to Scotland as an example, because as I understand it, legal aid spending per capita there is less than in England and Wales, but at the same time, the coverage and scope of the legal aid system is more generous. There are numerous reasons for that. For example, England and Wales have far more very expensive fraud trials, and so on. However, a key point is that the focus in Scotland has been on simplifying procedures so that the cost of court proceedings is much less than it was, so there are different ways to go about doing things.
Hon. Members have all rightly pointed out that access to justice goes beyond questions of legal aid. On fees, we shared opposition to criminal court fees and their predictable consequences and we welcome their withdrawal. We also welcome cancellation of the ludicrous 500% increase in fees for the asylum and immigration tribunal, although who knows how many people have had to leave the country as a result in the meantime? Employment tribunal fees have had a drastic effect on access to justice, as other hon. Members have pointed out, and they too should be withdrawn. I am pleased that the Scottish Government propose to do just that when the powers are devolved.
However, the fact that the Government have to make and consider those U-turns suggests that they need a much more fundamental rethink of their approach. Other speeches have covered the changes to personal injury rules and the small claims limit—I should have predicted that and looked into the issue in more detail. The hon. Member for Wolverhampton South West kindly pointed out the different system that exists in Scotland.
I share hon. Members’ general scepticism and concern about what exactly the proposed changes will achieve. I say that, having had to confess to colleagues who have worked for Thompsons, that I previously trained with an insurance-financed defenders firm—I do apologise. None of that is to say that the problem does not need to be addressed. The hon. Member for Croydon South (Chris Philp) highlighted the issue of horrendous cold-calling. I had a similar issue when I managed to reverse into my garage wall—quite how I was supposed to sue the garage wall I am not sure. All I would say to him is that some of what the Government propose to solve the problem would surely mean throwing the baby out with the bathwater. There must be other ways of tackling that without having to go as far as the Government suggest.
Sir Oliver Heald
In Scotland there are significantly fewer personal injury claims, and there has never been the problem of the industrialisation of such claims as has happened in England and Wales. Scotland has therefore not had the same sort of problem of a claims culture that we are trying to address.
Stuart C. McDonald
That is an interesting point. I suppose we have to examine why that is the case, because we have not managed to get rid of that in Scotland by excluding all sorts of cases from courts, so it would be interesting to look into that further.
There are a lot of access to justice issues that we could speak about, but before finishing, I will focus on something that has not been spoken about yet: the particular barriers to justice that the Government are putting in place for those who are seeking asylum or who are migrants. Last year Opposition MPs highlighted that the Immigration Bill, which was then making its way through the House, would make people have to leave their families and jobs in order to conduct appeals against Home Office decisions from abroad, would cut back on appeal rights against refusal of asylum support, leaving vulnerable, destitute people without any legal recourse, and would introduce procedures allowing families with children to be summarily evicted without so much as a court order, never mind a court hearing.
I know that MPs here today have disparate views on immigration and the rights that migrants should have, but I cannot understand how anyone can say that migrants should be deprived of proper access to a court in order to vindicate the rights that they do enjoy. Denying access to justice should not be a means of trying to control immigration. Various other significant concerns arise right across the sphere of immigration and asylum law, and I will mention three or four before concluding.
The Minister for Courts and Justice (Sir Oliver Heald)
I congratulate the hon. Member for Wolverhampton South West (Rob Marris) on securing this debate, and I thank Members who have contributed to it. Some important points were made. However, regarding the hon. Gentleman’s criticism that the impact assessment on the whiplash changes does not show a saving, I must say that it makes it very clear that the saving is £1 billion, which, of course, accounts for the £40 cut in premiums for every motorist in the land that I mentioned. Are we to sacrifice that simply to uphold a threshold that has been in place for so many years, since 1991, and in the interests of solicitors?
The hon. Gentleman very fairly made the point that he was from Thompsons Solicitors. I think that the Labour party spokesman, the hon. Member for Leeds East (Richard Burgon), is also from Thompsons. There was one other who did not reveal himself, but I suspect that it is the hon. Member for Ellesmere Port and Neston (Justin Madders). They are the three musketeers of the Thompsons world. Anyway, it is a very fine firm, and I have to confess that I have been instructed by it on one occasion in the past, and it prepared the brief very well.
My hon. Friend the Member for Croydon South (Chris Philp) made a very important speech, explaining the industrial nature of the problem we face with these whiplash claims and the dubious practices that go with it. For those from Scotland, such as the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), the Scottish National party spokesman, it will be hard to understand this claims culture; Scotland does not have it. It is hard for people to understand it if it has not developed in their part of the UK. It has got to the point at which it is a massive problem. I will cover the point made about employment fees in a moment.
My hon. Friend the Member for North Warwickshire (Craig Tracey) made a very knowledgeable speech. He pointed out that we have to consider not just the pure whiplash claims, but those that are whiplash-related—those described as a back or neck injury, but that are, in effect, whiplash cases. That, of course, explains the figures that I outlined earlier.
It has been a good debate, and I wanted to make the point at the start that the Government are committed to ensuring that the justice system works for everyone. I will describe some of the actions that we are taking. The SNP spokesman made the good point that this is not just about legal aid; it is also about simplifying procedures and changing the way that the legal system works. Of course, that is what we are doing. The Lord Chancellor, the Lord Chief Justice and the Senior President of Tribunals jointly announced plans that are about renewing and transforming our justice system. Of course, we are putting in a massive investment of £1 billion to reform and digitise our courts, to make sure that this vital public service reflects modern needs and expectations.
The reforms will deliver swifter justice and, I hope, a less stressful experience for those involved. We will get cases out of court that do not need to be there, whether by using online procedures or through more alternative dispute resolution. We will apply the full force of judge and courtroom only in those cases that require it, and will strip away unnecessary hearings, redundant paper forms and all the duplication in the system, because we have the best legal system in the world but it also needs to be the most modern. That is what we aim to achieve. The guiding principle is to have a system that is proportionate and accessible, and is there for the vulnerable, victims of crime, members of the public, legal professionals, witnesses and litigants. We want a system that is a statement of our values as a country and leads the world.
Our legal aid system is important. The coalition Government faced unprecedented financial challenges; it is all very well people talking as though there were no pressures, but there were huge financial pressures at the time, and the Government had to reform. They concentrated legal aid on the most important areas—on cases where an individual’s liberty or home is at stake; where children might be taken into care; or where there is domestic violence. Although the reforms were substantial, it is right to follow through on our intention, which we set out at the beginning, which is that there should be a proper review. We have said that it will take place by April 2018 at the latest. We are well within the period during which we could start the review, and we will announce our intentions on it in the coming period.
I want to emphasise that we have made sure that litigants in person get help and support. Since 2015, we have provided £3.5 million to the litigants in person support strategy, through which we are working closely with the advice sector, voluntary partners and the pro bono sector; they are enhancing the local signposting of local and national legal support services and co-ordinating their work. We have seen a fast-expanding number of personal support units. The citizens advice bureaux do a fantastic job, and I pay tribute to the hon. Member for Makerfield (Yvonne Fovargue) for mentioning them. We also have many pro bono providers and local law clinics. This strategy has momentum, and it is wrong for the hon. Member for Wolverhampton South West to say that the result of having litigants in person is longer cases. That is not what the evidence shows; in fact, the average length of a civil case is becoming shorter, year by year.
I want to make family court processes safer for victims of domestic abuse, and our recent announcement contributes to that. It is right to have a system in which the victims of domestic abuse do not face cross-examination by their abusers. That sort of cross-examination is illegal in criminal courts, and we would like to see it outlawed in family courts. I have mentioned alternative dispute resolution.
Both the hon. Members for Ellesmere Port and Neston, and for Wolverhampton South West, mentioned employment tribunal fees. The Government are reviewing the impact of the introduction of fees in those tribunals. There is not a report gathering dust on my desk or anything like that; we are completing the work. I explained all this when I appeared before the Justice Committee recently. The work that we are completing is about the categories in the discrimination field; we are looking at the implications for each of those groups. We are getting to the point at which we will soon be able to produce a report; it will not take much longer. I said that I would produce it as soon as possible in the new year and I meant it.
Since it has been mandatory to go to ACAS, it has been resolving far more cases. The effect is that there are now 92,000 cases going to ACAS, whereas previously there were only 23,000. There used to be about 17,000 cases that did not then go on to the tribunal; now, it is something like 45,000 cases, so ACAS is having a big effect in this area. I understand the frustrations of those who say that the review has taken too long, but it will be comprehensive and it is not far away.
We face whiplash cases on an industrial scale. The number and cost of those cases, and their adverse impact on the price of motor insurance, is a concern for Government. There have been huge improvements in car safety, so how can it be that 770,000 road traffic accident claims were made in 2015-16, compared with only 460,000 in 2005-06, with around 90% of the claims in 2015-16 being whiplash-related? That figure is too high and the Government must take action to tackle this issue and protect consumers.
The previous Prime Minister held a Downing Street summit on this issue and we have recently made changes, such as introducing the new MedCo system, which improves the medical expert side of things. There was also a recent consultation on raising the small claims limit for personal injury claims to £5,000, and on damages for road traffic cases involving whiplash—soft tissue injury. If we can save £40 per head on motor insurance policies, clearly those are issues that we should be consulting on and considering very seriously. Also, it is worth bearing in mind that the £1,000 limit for these cases was set in 1991, more than 25 years ago. Since then, the small claims limit for everything else has gone up to £10,000, so the review is very much needed.
Finally, to provide reassurance to Members, people can still employ a lawyer to help them with a case that is in front of the small claims court, and they can try to reach an agreement with their lawyer about how their case is funded. Of course, the point is that they cannot recover costs, but there is no ban on taking legal advice, though clearly people would need to look at the economics of that. The other point to make is that if someone has a complex case that should perhaps be dealt with by the county court in its full setting, that is possible; they can make an application to that court, which can transfer—
Geraint Davies (in the Chair)
Order.
Motion lapsed (Standing Order No. 10(6)).