Draft Civil Proceedings Fees (Amendment) Order 2021
(Limited Text - Ministerial Extracts only)
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The Chair
Before we begin I would like to remind Members to observe social distancing and only to sit in places that are clearly defined and marked as available. Mr Speaker has stated that masks should be worn in Committee rooms except, of course, when a Member is speaking. Hansard colleagues would be most grateful if Members sent their speaking notes to hansardnotes @parliament.uk.
The Parliamentary Under-Secretary of State for Justice (Chris Philp)
I beg to move,
That the Committee has considered the draft Civil Proceedings Fees (Amendment) Order 2021.
It is a great pleasure to serve under your chairmanship, Mr Paisley, for the first time, I believe, and I am sure not for the last time
The purpose of the statutory instrument is very straightforward, namely to support the ongoing work of the Her Majesty’s Courts and Tribunal Service to make sure that courts and tribunals operate efficiently and cost-effectively. For that reason, for many years fees have been charged for some services delivered by the courts, particularly in the civil jurisdiction. Those make a contribution to running the wider system including, of course, the criminal courts.
The SI affects civil money and possession claims, which are regulated by the Civil Proceedings Fees Order 2008. The fees were last changed about six years ago. At the moment, a discount is applied if the claim is made online. We propose to align those fees upwards, so that the same fee is paid whether the claim is filed on paper or online, so that there is no longer any difference. The magnitude of the increase is relatively modest; for most fees it is an increase of £10 per application. The largest increase is £45—if someone is making a claim between £5,000 and £10,000, the fee goes from £410 to £455. For the majority of fees, however, the increase is just £10.
We estimate that the fee increases will raise between £9 million and £25 million, every penny of which will be reinvested in the courts system on matters such as sitting days and court maintenance. Indeed, the budget dispensed by the Ministry of Justice also covers legal aid. All of the money raised will go towards supporting our court system as it recovers from coronavirus.
It is worth mentioning that, in total, we raise £724 million a year in fees, but the cost of running HMCTS is about £2 billion, so we are only actually getting about one third of the cost of running the Courts Service back in fees. That income is important, however, because it helps the entire system to run more effectively and minimises the burden on the Exchequer.
That is a summary of the proposals before us. It is a modest but sensible change to make sure that we are doing everything we can to ensure that our justice system is fully funded. I commend the Order to the Committee.
Chris Philp
I am grateful to the shadow Minister for his support for the measure in hand. I can assure him that the money raised will be in addition to the £377 million extra being invested in the criminal justice system this year. Among other things, that money will support the downstream impact of the 20,000 extra police officers who, I am sure, all of us welcome very strongly.
Question put and agreed to.