Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Lord Best and Lord McNally

Tuesday 27th March 2012 Lords Chamber

[Lord McNally]

My Lords, the noble Lords, Lord Beecham and Lord Best, acknowledge that this is one more time on which we have discussed these matters. We had detailed discussions in Committee and on Report. Amendment 16 is intended to bring into the scope of legal aid advice and assistance in relation to an individual’s financial situation, such as debt and housing-related welfare benefits issues, where they are linked to the loss or threatened loss of the individual’s home under paragraph 34 of Part 1 of Schedule 1. The House will be well aware that our proposals ensure that legal aid continues to be available to an individual in relation to the immediate risk of losing their home, through possession or eviction. This includes cases where the underlying cause is a debt or welfare benefits issue.

It may reassure noble Lords if I reiterate a few brief examples of where legal aid will be available under the loss-of-home provisions in paragraph 34 of Part 1 of Schedule 1. First, legal aid will continue to be available before a case is brought to court. It will be available where possession or eviction action is contemplated. Where an individual receives a letter which threatens possession action, legal aid will be available at that point. For example, legal aid will remain available to a person threatened with possession action for mortgage arrears to negotiate with their mortgage lender.

In the context of welfare benefits, it is important to recognise that, where a landlord threatens their tenant with possession proceedings, legal aid would be available to the tenant to reach agreement with a landlord to delay the possession action pending the resolution of the welfare benefits issue. If possession proceedings are issued, legal aid will be available to an individual to argue for an adjournment—for example, if they are likely to be able to make the necessary payments if an underlying benefits dispute is resolved in their favour. Where an individual loses a welfare benefits appeal and subsequently faces possession action for rent or mortgage arrears, legal aid will be available in relation to that action. We will also retain legal aid provision for judicial reviews about welfare benefits decisions and for welfare benefits matters which relate to a contravention of the Equality Act 2010.

This amendment would go much wider and would generally provide for legally aided advice and assistance on the financial circumstances of an individual—such as for underlying debt or welfare benefits issues—where these are linked to loss of home. This would run contrary to our approach. At a time when the country is recovering from a genuine fiscal crisis we need to focus limited resources on the highest-priority matters. As I have said before, we cannot agree that legally aided advice and assistance should be generally available in relation to a person’s financial circumstances—such as for debt or welfare benefits issues—in the situations covered by the amendment.

There is no doubt that people, including those in potential loss-of-home situations, find advice useful in areas such as debt and welfare benefits. But we are firmly of the view that what those affected often need is practical advice rather than legal advice funded by legal aid. Individuals who have debt problems often need advice on managing their finances better and on practical measures to resolve their situation, and can access that advice through a range of specialist organisations. It will come as no surprise to the House to hear me repeat that the Government greatly value the not-for-profit sector and the good-quality free advice which it provides to people in their communities on these sorts of matters.

My department is working closely with the DWP to improve the quality and effectiveness of initial decision-making in applications for social security, reconsideration within the DWP and the system of subsequent tribunal appeals. This work should make it easier for claimants to receive the right benefit provision. Moreover, welfare benefits appeals matters are resolved through a tribunal which is designed to be accessible without legal assistance, and general advice on welfare benefits is available from a number of sources.

I know that this issue has been raised at every stage. After these debates, we do not just close the book and not take any notice. We go back to the department and the Ministers and advisers have a discussion. There is also a discussion about the issues raised with other departments. This is not a decision taken lightly but we believe that the loss-of-home proposals in the Bill get the balance right in terms of focusing limited public funds for legal advice and assistance in the most appropriate circumstances. We have listened to the appeals made by the noble Lord and considered them. At this point, we cannot agree with them. I ask him to withdraw his amendment.

[Lord Best]

I am grateful to noble Lords who have spoken. I am also grateful to my noble and right reverend friend Lord Harries of Pentregarth, who put his name to this amendment but has had to leave us. I thank the noble Baroness, Lady Hollis, for talking of the perfect storm at a time of housing benefit change when advice will be incredibly important to people. Things will change dramatically on the benefit front and mistakes will be made by the officials concerned. Experts will be needed for support and assistance. I am grateful to the noble Lord, Lord Beecham, who reminded us that Shelter, Citizens Advice and such bodies are behind this amendment rather than the lawyers. He also mentioned the extra costs that homelessness always brings.

This is a cost-saving amendment. The noble Lord is right that much remains within scope. Some 75 per cent to 80 per cent of the work currently being done remains within scope, which is great, but a lot of that is wasted if the remaining 20 per cent to 25 per cent is cut out. Where possession is threatened is the bit where the argument can be taken up with the administrators, the housing benefits officers. With their negotiating skills and expertise, they can fix it and sort it. Cutting that out renders a lot of the rest of the expenditure much less worth while.

Before the hour gets any later and without further ado, I wish to test the opinion of the House.

Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Lord Best and Lord McNally

Wednesday 18th January 2012 Lords Chamber

[Lord Best]

I shall return to this later.

[The Minister of State, Ministry of Justice (Lord McNally)]

I do not think the noble Lord should worry. At this time of night it becomes a bit of a blur for us all.

Amendments 72 and 82ZC would bring into scope debt matters that are not covered in Schedule 1 and which we intend no longer to fund. We are faced, as we have said before, with tough choices in this current fiscal climate, but this has allowed us to focus resources on those who need them most in the most serious cases where legal advice and representation are justified. We estimate that we will continue to spend around £50 million on social welfare law overall.

Amendment 72 relates to paragraph 28 of Part 1 of Schedule 1 and appears to be aimed at making legally aided advice, assistance and representation available where a person’s financial difficulties, such as debt problems, could potentially lead to the individual losing their home.

Amendment 82ZC would bring into scope all debt matters not covered in Schedule 1. In our consultation on legal aid reform, we proposed that funding should be prioritised on cases where the individual’s home is at immediate risk. We are therefore retaining legal aid in relation to court orders for possession or sale of the home and in relation to eviction. We generally consider that other debt matters are a lower priority and therefore do not justify public funding for legal advice and representation.

We recognise that early advice can be helpful in a range of contexts. However, what people often need is general advice, for example on welfare benefits, debt or housing, rather than legal advice. There are many alternative sources of help with debt issues, including Credit Action, the National Debtline, the Consumer Credit Counselling Service and local authorities, which also direct people to local sources of advice and assistance on debt matters. In addition, the Money Advice Trust has recently launched My Money Steps, an online tool for providing advice for people with debt problems. The Consumer Credit Counselling Service also offers a free online debt remedy service.

We also recognise the argument that withdrawal of legal aid for any issue could lead, by a chain of events, to serious consequences. We considered this point carefully when formulating our final proposals. However, our view is that the limited public funds for legal advice and representation should be focused on those cases where the client faces serious direct consequences. Therefore, we do not propose to devote these limited public funds to less important cases on the basis that they could indirectly lead to more serious consequences for that person.

It is also important to recognise that the Bill does not require legal proceedings to have been issued before legal aid can be made available. Legal aid will be available where action for repossession or eviction is contemplated—for example, where a person receives a letter threatening repossession action in the absence of payment. Therefore, legal aid will be available to a person threatened with repossession action for mortgage or rent arrears, for example to negotiate with the mortgage lenders. It should also be noted that we will retain funding for the housing possession court duty scheme. It offers free legal advice and representation to anyone in danger of eviction or having property repossessed, on the day of the hearing, regardless of their means. Research shows that 77 per cent of clients who receive this last-minute advice avoid the immediate loss of their home. Under the circumstances, I hope the noble Lord will consider withdrawing his amendment.

Amendment 82D appears to be aimed at bringing into scope debt relief remedies under Part 5 of the Tribunals, Courts and Enforcement Act 2007 and, in particular, as the noble Lord said, debt relief orders. As I have already said, we consider certain debt matters to be a high priority for funding. That is why we are retaining legal aid for debt cases where the individual’s home is at immediate risk of repossession because of rent or mortgage arrears or involuntary bankruptcy. We recognise that debt problems can be difficult for the individuals concerned. Nevertheless, we strongly believe that what is often required is practical advice to resolve issues, rather than advice of a legal nature.

It is important to note that debt relief orders are relatively informal procedures. Advisers act as approved intermediaries and assist debtors in applying to the Insolvency Service for a debt relief order. I reiterate that individuals who have debt issues are able to seek advice from alternative routes. For example, the Insolvency Service website provides guidance and leaflets, and information is available through the insolvency inquiry line. Importantly, it should be noted that debt relief orders are used by people who owe limited amounts of money and have no assets. Therefore, they do not involve a person’s home being at immediate risk. They are clearly not analogous to cases in which a home owner is at immediate risk of losing their home as a result of involuntary bankruptcy. I hope that noble Lords will be reassured by what I have said and will not press these amendments.