Legal Services Act 2007 (Approved Regulator) Order 2014

Lord Faulks Excerpts

Monday 7th July 2014 Lords Chamber

Moved by

[Lord Faulks]

That the draft orders laid before the House on 9 and 16 June be approved.

Relevant documents: 2nd and 3rd Reports from the Joint Committee on Statutory Instruments. Considered in Grand Committee on 1 July.

Motions agreed.

Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Amendment of Schedule 1: injunctions to prevent gang-related violence) Order 2014

Lord Faulks Excerpts

Monday 7th July 2014 Grand Committee

Moved by

[Lord Faulks]

That the Grand Committee do consider the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Amendment of Schedule 1: injunctions to prevent gang-related violence) Order 2014.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments

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

My Lords, the order before us today amends Schedule 1 to the Legal Aid, Sentencing and Punishment of Offenders Act to allow for advocacy in a youth court to be funded by civil legal aid for under-18s in respect of injunctions to prevent gang-related violence. The purpose of this draft order is to maintain the existing availability of civil legal aid for under-18s in respect of advocacy related to injunctions to prevent gang-related violence. An amendment to the Legal Aid, Sentencing and Punishment of Offenders Act 2012 is necessary to reflect the change of venue for such injunctions made by the Crime and Courts Act 2013 from the county court to the youth court, which is a specialist type of magistrates’ court.

Before setting out further details about the order and why the Government are taking this action, I will briefly explain some background. Civil legal aid is currently available for injunctions to prevent gang-related violence under Part 4 of the Policing and Crime Act 2009 by virtue of paragraph 38 of Part 1 of Schedule 1 to LASPO. These proceedings are currently heard in a High Court or county court, and Part 3 of Schedule 1 to LASPO, which sets out when advocacy may or may not be funded by civil legal aid, allows for this, subject to a means and merits test. Section 18 of the Crime and Courts Act 2013 amends Part 4 of the Police and Crime Act 2009 to provide that, where a respondent is aged under 18, a youth court will have jurisdiction to grant gang-related injunctions. This reflects the Government’s view that a youth court is a more suitable venue for such proceedings involving a child. The youth court is a type of magistrates’ court, designed in a child and youth-sensitive way. However, legal aid for advocacy for proceedings before a magistrates’ court is generally excluded from the scope of the civil legal aid scheme by virtue of Part 3 of Schedule 1 to LASPO.

With that background in mind, I will turn to the reason for the order before us today. The Government recognise that restrictions may be placed upon a person’s liberty as the result of an injunction to prevent gang-related violence. Breach of an injunction can lead to contempt of court proceedings which, for 14 to 17 year-olds, can result in a supervision order or a detention order being made under the Crime and Security Act 2010. The Government therefore consider that legal aid should remain available for advocacy in proceedings in respect of injunctions to prevent gang-related violence for under-18s, notwithstanding the change of venue for these proceedings as a result of the Crime and Courts Act 2013. To maintain the existing availability of civil legal aid, it is necessary to make an order specifying that advocacy for such proceedings is in scope of the civil legal aid scheme set out in LASPO. That is achieved by the order before this Committee today.

I hope that noble Lords will welcome the order. It makes a relatively minor but important change to the civil legal aid scheme which complements the wider changes made by the Crime and Courts Act 2013. I therefore commend the draft order to the Committee and I beg to move.

[Lord Kennedy of Southwark (Lab)]

My Lords, as the noble Lord, Lord Faulks, has outlined, Schedule 1 to the LASPO Act sets out the scope of the civil legal aid scheme. It is well documented that the Labour Party, along with many other organisations, opposed what the Government did in respect of civil legal aid when they brought this Act into law. Having said that, from the autumn of this year, proceedings related to gang-related injunctions concerning people under the age of 18 will move to the youth court from the county court. We in the Opposition think that is a sensible move and support the transfer, along with the provision for civil legal aid to be available when the proceedings move, which is what this order seeks to do.

I note from the papers that, as this is regarded as a relatively minor change, no specific consultation was undertaken and no guidance is provided. This is not a policy change and the impact is regarded as minimal, with no major impact on regulating small businesses. However, it is said that the operation and expenditure on legal aid is continually monitored by the department, so perhaps the noble Lord could shed some light on what has happened to date, for the benefit of the Grand Committee. Would he also agree that the effect of these injunctions was extremely important and serious for individuals, both those who are the subject of them and those whom they seek to protect? Does he have information on how effective the injunctions have been to date? If he is not able to provide that information today, will he write to me with further details including any case studies that can highlight the effect to date?

With that, I should say that I am very happy with the order.

[Lord Faulks]

I am grateful to the noble Lord for his comments. Although it is perfectly true that the party opposite has been opposed to legal aid changes, it does not oppose this order because it does not change the eligibility of legal aid but is concerned only with the venue of these hearings.

The description of the change as “minor” simply refers to the effect in terms of substance, rather than suggesting that the injunctions related to minor matters. They do not. They are a relatively new weapon in the hands of local authorities and the police to try to control gang activity, and particularly to discourage youths from joining gangs. That is sometimes to those particular youths’ benefit. Say older brothers or other members of the community put pressure on them to join a gang; an injunction preventing your doing so is a very good answer, so in a sense it protects individuals from themselves.

There has not as yet been an enormous take-up of the orders. However, they have been operational, particularly in London, the West Midlands, Birmingham, Merseyside and Manchester. As I said, it is very much those on the periphery of gangs whom we are talking about; those at the centre of the gangs tend to attract the attention of the police and may end up being prosecuted for specific offences. The injunctions are important, and although they are not yet widely used we hope that their use will increase, particularly in London, where gangs are so much of a problem, as your Lordships’ House will be well aware.

Although the noble Lord did not specifically ask, I should say that if an injunction is breached it can result in an order for contempt of court, which can conceivably result in a sentence of imprisonment of an individual. I reassure the House that there will then be legal aid in those circumstances, although that will be criminal legal aid rather than civil legal aid, which covers these circumstances.

The change of venue reflects the Government’s view that the youth court is a more suitable place for proceedings that involve a child to be conducted. We therefore believe that this is a reasonable and sensible amendment, which aims to ensure that civil legal aid remains available for advocacy for under-18s in respect of the injunctions to prevent gang-related violence. I hope that noble Lords agree that this is a proportionate and sensible measure.

Motion agreed.

Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Chartered Institute of Patent Attorneys and Institute of Trade Mark Attorneys) Order 2014

Lord Faulks Excerpts

Tuesday 1st July 2014 Grand Committee

Moved by

[Lord Faulks]

That the Grand Committee do consider the Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Chartered Institute of Patent Attorneys and Institute of Trade Mark Attorneys) Order 2014.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments.

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

My Lords, first, on the designation order, the purpose of the order is to designate the Institute of Chartered Accountants in England and Wales—ICAEW—as an approved regulator under the Legal Services Act 2007 for the reserved legal activity of probate activities. I should also say that, if this is approved, a further order will be laid in the near future to designate the institute as a licensing authority for probate activities, which will mean that it will be able to license alternative business structures. This should help to promote increased competition and innovation in the legal services market.

The Legal Services Act 2007 established a new regulatory framework for legal services. Among the key aims of the Act was to deliver a more effective and competitive market. The Act contains eight regulatory objectives which include protecting and promoting the public interest; protecting and promoting the interests of consumers; and improving access to justice. The Institute of Chartered Accountants in England and Wales is a regulator and professional membership body for the accountancy profession in England and Wales. It provides leadership and practical support to its UK and international members and professional standards are maintained through working closely with Governments, regulators and the industry. It also undertakes education and training to support students studying to become chartered accountants.

The institute applied to the Legal Services Board in December 2012 to be designated as an approved regulator for probate activities. It also applied simultaneously to be designated as a licensing authority for probate activities. During 2013, the Legal Services Board very carefully and rigorously tested the institute’s proposals against the criteria in the 2007 Act. The Legal Services Board has also taken care to assess that the institute has both the capacity and the capability to undertake a regulatory role in the legal services sector. The board took advice from the mandatory consultees, as required by the 2007 Act. These are the Lord Chief Justice, the Legal Services Consumer Panel and the Office of Fair Trading—now the Competition and Markets Authority. The board additionally consulted the Financial Reporting Council and the Insolvency Service.

The Legal Services Board took care to ensure that the governance arrangements proposed by the institute are suitably robust in ensuring that its regulatory arrangements are independent from its representative functions, which is a key element of the 2007 Act. This is an important point, on which concerns were raised during the consultation, but the board has tested this issue and is fully satisfied that the arrangements that the institute has set out for its new probate committee will allow it to exercise the regulatory functions in a way that is not prejudiced by the institute’s representative functions. The Legal Services Board is fully satisfied that the institute has in place the safeguards required to regulate authorised bodies and protect the providers and users of such bodies. The Government accept that assessment.

The Government recognise the importance of the legal services market and want to encourage its growth. We believe that designating a new regulator, which has the appropriate safeguards for consumer protection, will help to achieve this. As for consultation, some issues were raised when the proposals were consulted on. The then Lord Chief Justice had long-standing general concerns that regulatory competition would have a detrimental effect on standards. The Legal Services Board was aware of these concerns and addressed them by setting out how the 2007 Act aims to achieve a more effective and competitive market, thereby improving standards. The Legal Services Consumer Panel strongly welcomed the application by the institute but was concerned that the institute was initially not proposing to have a majority of lay members on the probate committee or disciplinary committee. In response to the panel, the institute redrafted its regulations so that the probate committee was made up of a majority of lay members. The Office of Fair Trading had no objections. The Law Society wrote to the Legal Services Board to express concerns, in particular, as I have already noted, about the governance arrangements being proposed by the institute. The Legal Services Board copied this letter to the institute, which responded in detail to all the concerns that the Law Society had raised. The LSB was content with the response and the governance arrangements.

As I have also already mentioned, the Legal Services Board consulted the Financial Reporting Council and the Insolvency Service. Both the Financial Reporting Council and the Insolvency Service noted that the institute takes its regulatory responsibilities very seriously and supported the applications.

I appreciate that some might argue that the Government should not be pressing ahead with this and that an accountancy regulator should not be permitted to regulate legal services. Some may even suggest that there will be a lowering of standards, or a diminution of consumer protection. We do not accept these arguments. The Legal Services Board is satisfied that there will be no lowering of standards or lessening of consumer protection, and the Government agree. I am satisfied that the Institute of Chartered Accountants in England and Wales will be a highly capable and effective regulator in the legal services market. Its entry to this field will help contribute to the growth of the legal services market and bring further innovations, leading to benefits to consumers of legal services.

I turn now to the appeals orders. Noble Lords may be aware that the licensing regime for alternative business structures, as contained in the 2007 Act, became operational on 6 October 2011. In brief, alternative business structures are bodies that carry on reserved legal activities and are partly or wholly owned or controlled by non-lawyers.

In relation to that regime, as I have said previously, the ICAEW has applied to the Legal Services Board to be designated as a licensing authority. The Chartered Institute of Patent Attorneys—CIPA—and the Institute of Trade Mark Attorneys—ITMA—also made a joint application to the Legal Services Board to be designated as licensing authorities. Members of the Committee may be aware that the Legal Services Board made recommendations on 6 December, and earlier this year the Minister responsible for legal services agreed to make the following orders designating the Chartered Institute of Patent Attorneys, the Institute of Trade Mark Attorneys and the Institute of Chartered Accountants in England and Wales as licensing authorities under the Legal Services Act 2007.

In accordance with that Act, before CIPA, ITMA and ICAEW can be designated as licensing authorities by order of the Lord Chancellor, it is necessary for there to be an appellate body with the power to hear appeals against its decisions made in relation to alternative business structures.

The purpose of these orders is to make provision for the First-tier Tribunal to act as the appellate body for the purpose of appeals from those three bodies in their capacity as licensing authorities. As required by the 2007 Act, these orders are made on the recommendation of the Legal Services Board, following public consultation.

In summary, the two appeals orders make provision: for the First-tier Tribunal to have the power to hear appeals from the decisions of ICAEW under Part 5 of the 2007 Act and its licensing rules and to hear appeals from the decisions of CIPA and ITMA, acting jointly or separately, under Part 5 of the 2007 Act and their licensing rules; for the orders that the First-tier Tribunal may make on appeals from decisions made by those bodies under their licensing rules; and for modifying the Legal Services Act 2007 so that these appeals fit into the existing structure of onward appeals from the First-tier Tribunal to the Upper Tribunal.

These orders have been brought before the House at the earliest opportunity, following recommendations from the Legal Services Board on 2 May. If approved, the orders will provide individuals and businesses that are subject to licensing decisions of the Chartered Institute of Patent Attorneys, the Institute of Trade Mark Attorneys and the ICAEW with an opportunity to appeal those decisions through an independent and impartial appellate body. I beg to move.

[Lord Beecham (Lab)]

My Lords, having safely navigated the rather stormy waters of the Second Reading of the Criminal Justice and Courts Bill yesterday, it is a pleasure to renew acquaintance with the Minister over these crucially important statutory instruments. One or two questions occur to me about them.

The first is that we are talking effectively about alternative business structures, which are clearly well regulated. I do not know whether this is possible, but supposing that within a single alternative business structure you had both lawyers and accountants, what would be the appropriate framework? Would the professional body of which an individual within such a structure might be a member have a jurisdiction? Or is there an overarching mechanism for the structure as a whole as opposed to the individuals who work within it?

Secondly, grants of probate are issued to executors. My understanding is that if the executors chose to employ someone who is not part of a regulated profession, of course none of these safeguards would apply. Is it the intention of either the Government or the relevant bodies—I presume it would certainly be that of the latter, but it would also be sensible for the Government—to promote the use of properly regulated structures for these purposes? Having said that, I mentioned to the Minister before we began this Committee that I know of a solicitor who many years ago charged something like £90,000 in fees on an estate that was valued at just over £100,000. The regulatory body disposed of him in due course, but he was nevertheless guilty of an offence and seriously defrauding his client. The existence of a regulatory body itself does not necessarily mean that everything will be well.

There is one other matter, which may be slightly tangential. I am assuming that other accountancy bodies may be in a position to apply to be recognised for the same purposes as the chartered institute. In that connection, I have some involvement with an organisation called the Association of International Accountants. It is a non-commercial relationship; I just happen to know some of the people involved and I was recently asked to host a dinner in this House in lieu of my noble friend Lord Sawyer, which I did. The organisation is having some difficulties, not in this particular context, but in the more general context of being recognised for certain other purposes. It may not be possible for him to give me one at the moment, but I would like an assurance from the Minister that, if such a body were to apply to be recognised for the same purposes as the chartered institute, the same process that the chartered institute has successfully undergone would be available to it.

There is a feeling on the part of the Association of International Accountants that the two main accountancy bodies in this country—the chartered institute and whatever the appropriate body is for certified accountants—are, in one particular area, effectively operating a duopoly from which this association is excluded. I asked a Written Question about this some time ago, to which I received a not terribly helpful reply from the point of view of the association. An assurance that they would be treated on an equal footing in terms of passing whatever tests are necessary to be included in this would perhaps be of some comfort to them. Having said that, I cannot see anything to object to in these orders and we are perfectly content to see them go through.

[Lord Faulks]

My Lords, I am grateful for the questions that I have been asked by the noble Lord, Lord Beecham, who rightly says that regulation and discipline are no absolute guarantee against unprofessional, to put it mildly, practice on the part of a professional in whatever their particular role is. The Legal Services Board has been given by Parliament the task of approving as a regulator these various bodies. As your Lordships will be aware, the scope of their activities is limited. In terms of protection of the consumer, it was important that the effective arrangements were in place to ensure that members co-operated with the legal ombudsman. The Government also had to be satisfied that appropriate client protection arrangements were in place for any body designated as an approved regulator. The Legal Services Board undertook a detailed analysis and was satisfied with the arrangements of the probate compensation scheme, and the requirement for all authorised firms and accredited probate firms to hold professional indemnity insurance. That should protect someone in whatever particular professional role they perform within an alternative business structure.

In terms of these now multidisciplinary practices, there may well be lawyers working with what one used to regard as an accountancy firm. As I understand it, their work within the accountancy firm would be regulated in the way of the accountancy firm licensed to perform these particular activities, but if they were solicitors, for example, their activities would also be regulated by the Solicitors Regulation Authority as the disciplinary body. In so far as there can be protection for the individual, that will be ensured by these new arrangements.

[Lord Beecham]

In view of what the Minister has said, it is right that there should be professional indemnity insurance but that is basically for professional negligence. Certainly, the Law Society—as I know from the experience of having to contribute to these things—has occasionally to step in, not just in cases of professional negligence but also in cases of dishonesty, to compensate the clients of solicitors. Is it a condition of these bodies being recognised as regulatory bodies that they should assume responsibilities in that context of compensating those who have been defrauded of their entitlement as opposed to in claims for professional negligence? Again, it may not be possible to answer that question now but it would be interesting to find out.

[Lord Faulks]

I think that it would. I would be happy to write further with details about the arrangements. As I understand it, the Legal Services Board needed to be satisfied of the capacity for individuals to be compensated if mistakes were made in non-contentious probate. For historical reasons, probate is a reserved activity; hence the need for this whole process. The Legal Services Board was satisfied about professional indemnity insurance.

If I sound somewhat hesitant, the noble Lord will appreciate that Parliament has designated the Legal Services Board as the regulator. This is not directly the Government’s approval; it is the Legal Services Board’s approval. They have created this body, and the body has gone through the process. The Government have to be satisfied that the Legal Services Board has gone through the necessary process of consultation and satisfied itself of the adequacy of protection, for example, for consumers, and all the other aspects to which I referred in opening, but they do not have a separate governmental role. We do not think that there has been any inadequacy in the process of this approval. Essentially, the Legal Services Board, having been given that task, has satisfied itself. If an individual chooses a regulated person to undertake their probate, they naturally have protection and redress. As the noble Lord says, individuals have the choice of whether to undertake their own probate, in which case they do not, which is a matter of consumer choice. Further to what I said about lawyers and accountants within a single ABS, that will, of course, depend on which regulator licensed the alternative business structure. However, I understand that entity regulation applies over individual regulation, although, as I say, the individual may have some additional professional obligations of the sort that I described.

I do not think that I can answer from the Dispatch Box the other question that the noble Lord asked in relation to international firms. However, I will try to write him a more helpful letter than the one that apparently he received on a previous occasion.

[Lord Beecham]

I am grateful to the Minister for that. However, to be clear, the Association of International Accountants is not just a body of international accountants; it is a body with many UK members and some overseas members as well. It is therefore not operating solely in the international sphere. However, as I say, I am grateful to the noble Lord for his offer.

[Lord Faulks]

I hope that, subject to my providing further information by letter, I have satisfied the noble Lord. The debate has enabled me to put on record the importance of the alternative business structure and of the Government encouraging growth and innovation in the legal services market generally through these means. The order designated the ICAEW as a new approved regulator, which demonstrates our commitment to it. I hope that the debate has demonstrated the importance of the appeals order, which naturally needs to exist to support the effective operation of the ABS scheme. The appeals orders form a key component of the licensing arrangements. I commend these orders to the Committee.

Motion agreed.

Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Institute of Chartered Accountants in England and Wales) Order 2014

Lord Faulks Excerpts

Tuesday 1st July 2014 Grand Committee

Moved by

[Lord Faulks]

That the Grand Committee do consider the Legal Services Act 2007 (Appeals from Licensing Authority Decisions) (Institute of Chartered Accountants in England and Wales) Order 2014.

Relevant document: 2nd Report from the Joint Committee on Statutory Instruments

Motion agreed.

Legal Services Act 2007 (Approved Regulator) Order 2014

Lord Faulks Excerpts

Tuesday 1st July 2014 Grand Committee

Moved by

[Lord Faulks]

That the Grand Committee do consider the Legal Services Act 2007 (Approved Regulator) Order 2014.

Relevant document: 3rd Report from the Joint Committee on Statutory Instruments

Motion agreed.

Criminal Justice and Courts Bill

Lord Faulks Excerpts

Monday 30th June 2014 Lords Chamber

Moved by

[Lord Faulks]

That the Bill be read a second time.

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

My Lords, this is a significant and far-reaching Bill that has at its heart a vision for a stronger and fairer justice system. It introduces steps to toughen our approach to the most serious and repeat offenders, ensuring that penalties reflect the seriousness of the crimes committed and providing greater certainty for victims. It seeks to modernise our court processes and rebalance the judicial review system to reduce the delays caused by inappropriate or unmeritorious claims.

Our system of justice is regarded with enormous respect throughout the world. The quality of our judiciary and our respect for the rule of law are significant factors in attracting foreign investment to our shores. The Government are not, however, complacent. We must constantly examine our criminal and civil justice systems, not simply to respond to the latest headline but to ensure that they are adapting to the modern world.

In the field of criminal justice there is a need to identify the most serious offences and to make sure that our judges have adequate powers to deal with offenders. Equally we are absolutely determined to make a real impact on reoffending by our reforms, which will transform rehabilitation. Your Lordships’ House has enabled, for the first time, offenders who have received short sentences to be properly prepared for release and properly supported when they are released. This way, they will be better able to cope with life on the outside and will be much less likely to offend.

Another major issue is in the provision of education for young offenders. The need to provide this lies at the very heart of our plans in the Bill to introduce secure colleges to give young offenders real educational opportunities, often for the first time in their lives.

Improvements in our civil law system are making a difference. In Part 2 of the LASPO Act 2012, we implemented recommendations suggested by Sir Rupert Jackson to rebalance the system and deal with the consequences of the introduction of conditional fee agreements, which benefitted no one but lawyers and the organisations that fed on the system. It will be a little time before we can assess the full effect of our reforms, but the signs are hopeful.

One of the least attractive aspects of our system was the growth of claims management companies. A claims management regulation unit, which I have visited, has been in place since 2007, providing really effective protection to consumers and closely reining in unacceptable practices. The unit has the power to suspend, vary or cancel licences. Furthermore, I announced last Friday that the unit will be able to impose substantial fines on companies that break the rules. I am glad to tell your Lordships that the number of these companies is reducing, and reducing quickly.

These are just some of the changes that we are making. This Bill is part of the narrative. Criminal justice provisions in Part 1 of the Bill will help to keep our communities safe and secure, and ensure that offenders face the consequences of their crimes. Provisions in this part of the Bill place restrictions on the use of simple cautions on a statutory footing to ensure that serious and repeat offenders are treated consistently and are punished appropriately.

Unless there are exceptional circumstances, offenders will no longer receive a caution for the most serious offences, such as rape and robbery. For other offences, we are limiting the repeated use of cautions for the same, or similar, offences committed within a two-year period. We are ensuring that for all dangerous offenders and those who commit offences of particular concern, the Parole Board will consider their risk before early release can be authorised. This will improve public protection and encourage offenders to take responsibility for their own rehabilitation.

We have also made provision to ensure that the courts have sufficient tools to deal with offences that can have an enormous impact on victims and our communities. That is why we have increased the penalty for causing death while driving while disqualified, and introduced a new offence of causing serious injury while driving while disqualified. It is why we are adding further terrorism offences to the enhanced dangerous offender sentencing scheme, as well as increasing maximum penalties to life for offences where that is not already the case.

It is right that we have the necessary tools to monitor offenders on licence and to deal with breaches of licence conditions. The Bill introduces an additional “recall and release” test for determinate sentence prisoners, requiring consideration of whether, if released, an offender would be highly likely to commit further breaches of their licence, including further offending. This seeks to end the continuous cycle of fixed-term recalls and automatic release for offenders who persistently and wilfully breach their licence conditions.

We are also taking powers to impose mandatory location monitoring of offenders released on licence. The use of innovative new technology will help to deter reoffending, allow better monitoring of whereabouts and compliance with other licence conditions, as well as assist with crime detection.

It is sometimes the case that issues of national concern highlight the need for our laws to evolve to tackle different types of behaviour. The horrifying events at Mid-Staffordshire NHS Foundation Trust, and the review into the safety of patients in England that followed, exposed a gap in legislation as regards ill treatment or wilful neglect of users of health and care services. It was rightly recommended that this should be rectified. The Bill closes that gap by creating new criminal offences to deal with these completely unacceptable behaviours.

High-profile failings in police conduct have dominated headlines in recent years, most notably following the revelations about the handling of the Stephen Lawrence investigation. The existing common-law offence of misconduct in public office dates back several hundred years and is not specific either to cases of corruption or to police officers. It is not always well suited to dealing with or deterring the pattern of corruption in today’s information age, so we are introducing the new police corruption offence, which will ensure that the small number of officers who are corrupt are properly punished and face the appropriate penalty for their crimes. However, we also recognise the special role that police and prison officers play in routinely coming into contact with dangerous offenders in difficult situations. That is why we are raising the starting point for sentencing a murderer of a police or prison officer in the course of their duty to a whole-life order.

Part 2 of the Bill deals with the critical matter of youth justice. Under this Government, crime and offending by young people is down, with fewer entering the criminal justice system and ending up in custody. At present we pay around £100,000 a year for a place in youth custody, yet almost 70% go on to reoffend within 12 months. No current youth custodial establishment—young offender institutions, secure training centres and secure children’s homes—is providing good enough outcomes. For young offenders where custody is necessary, we want to make the best use of the opportunity to help to turn their lives around. We need to be better at rehabilitating young offenders.

Secure colleges will have education at their heart, with all other services designed in support of raising educational attainment and tackling offending behaviour. Figures suggest that 86% of young men in young offender institutions have been excluded from school at some point, and more than half of 15 to 17 year-olds in YOIs have the literacy and numeracy level expected of a seven to 11 year-old.

Secure colleges will provide the support and skills that young offenders need to stop reoffending and to contribute positively to society in adult life. The Bill establishes the statutory framework for secure colleges, with further detail to be set out in the secure college rules. Operators of secure colleges will be invited to deliver a broad, intensive and engaging curriculum to support and motivate the full range of ages and abilities of young people accommodated in these establishments.

The Government recognise that there are likely to be some detained young people who will continue to require separate specialist accommodation, either on the grounds of their age, acute needs or vulnerability. We are therefore committed to continuing to provide separate specialist accommodation, such as secure children’s homes, for this group of young offenders.

On 9 June my right honourable friend the Lord Chancellor and Secretary of State for Justice informed both Houses that the Ministry of Justice had selected a preferred provider—Wates—to design and build the pathfinder secure college in the east Midlands. Subject to parliamentary approval, if this pathfinder proves effective it will be a model for a future network of secure colleges across England and Wales. I can assure your Lordships that construction will begin only if this Bill receives Royal Assent.

Before this Bill reaches Report, we will launch a public consultation on our plans for secure college rules, which will set out the core requirements to ensure that the establishments operate safely and securely. I will inform the House of the details of this consultation in due course. We also intend to hold a meeting prior to Committee, to which all Peers will be invited, to show in more detail what the plans are, in physical terms, for the pathfinder college.

I hope that all noble Lords will at the very least keep an open mind and not resort to describing these establishments as “fortresses” or “Titan” prisons. Such rhetoric hardly helps in our quest to help some of our most vulnerable young people and is surely not the approach that should be adopted in your Lordships’ House.

This part also makes sure that all 17 year-olds have access to an appropriate adult when they receive a caution, and we are changing the law regarding referral orders to provide greater flexibility and powers for the court when punishing a breach or dealing with further offending.

Part 3 is very much about increasing the efficiency and flexibility of the courts to keep pace with the modern world. At present, much court time is wasted in hearing cases in open court when the defendant fails to attend; the only people present are magistrates and prosecutors. We could make better use of this valuable time elsewhere. This Bill allows one magistrate to deal with low-level regulatory cases away from traditional magistrates’ courtrooms. The types of cases that we are concerned about are the likes of failing to register the new keeper of a vehicle or depositing litter. We are ensuring that the defendant’s right to request a hearing is preserved, as the procedure will apply only when a defendant has either expressly or impliedly waived that right. We are also enabling more cases to bypass the Court of Appeal and go straight to the Supreme Court, again saving valuable court time. I reassure noble and learned Lords from the Supreme Court that that will be only with the consent of the Supreme Court.

The use of the internet has had a profound impact on how we carry out our daily lives, so we are also modernising the law on juror misconduct to bring it into the 21st century. Some of your Lordships might have seen that the Attorney-General has today announced that the Government intend to table an amendment to omit the provisions to update the law of contempt of court as it relates to publications. The measures were intended to provide clarity, to allow the media time to take down material, and to provide a defence until that point. The media, however, raised strong objections. Since the existing law gives protection for the integrity of court proceedings, we have decided not to pursue these measures.

This part also introduces a charge, payable by adult offenders on conviction, to contribute towards to the costs of the criminal courts. We already recognise that those who bring cases in the family and civil courts should bear some of the court costs in those jurisdictions. These provisions make that a reality in the criminal sphere, so that those who give rise to the costs of the criminal courts share the burden of those costs, rather than it solely being the burden of the taxpayer. Repayments can be set at an affordable rate, and we are encouraging rehabilitation by allowing the charge to be remitted after a certain period without reoffending provided that the offender has also taken reasonable steps to pay off the charge. To ensure that we have maximum flexibility, we are also extending the powers of fines officers to vary repayment of financial impositions after default, as well as prior to default.

Finally, I turn to Part 4, on the matter of judicial review, which is one of the most important means by which government and other public bodies can be held legally accountable for their decisions and actions. However, judicial review has grown significantly over recent years, and while there are many important and valuable judicial review cases brought every year there are also too many that are not. We have taken a detailed look at judicial review and concluded that there is a case for some proportionate and common-sense reform.

Part 4 will provide a better balance, ensuring that judicial review continues as a check on the Executive while limiting the potential to abuse it for collateral purposes, such as delay. The clauses in Part 4 deliver two things. The first is a much needed rebalancing of the financial risk of bringing or driving a weak judicial review. We think it right that those who bring or choose to become involved in a judicial review should face their fair share of the financial risk that entails, rather than expecting a subsidy from the body they are challenging. This is the position in other civil litigation.

We will therefore ensure that the courts have the information they need to use their existing powers to reach through, say, a shell company when awarding costs against an unsuccessful party. That does not mean that everyone who donates to a campaign will be at risk, but it is right that there should be a proportionate liability for those who in reality control, guide and stand to benefit from a judicial review.

[Lord Clinton-Davis (Lab)]

Is it not evident that judicial review will be enormously affected by this and that it will be beyond the scope of people to pay? In other words, it will become the province of the rich and not of the poor.

[Lord Faulks]

My Lords, we do not think so. The argument over legal aid is a debate that we have already had in your Lordships’ House. It is the Government’s view that the changes in the legal aid provisions were an entirely proportionate and sensible approach to legal aid, given the scarce resources that are available. As to the availability generally of judicial review, the Government are concerned to ensure that it remains a realistic remedy, but nevertheless that appropriate modifications are made. We will scrutinise those modifications during the course of the debate.

We are affirming in statute the court’s ability to make orders protecting an unsuccessful claimant from a successful defendant’s costs. But it must be right that such protection, almost invariably at a cost to hard-pressed taxpayers, should be reserved for cases with merit and which concern matters of high public interest.

Those who intervene in a case to make arguments or adduce evidence can certainly add value to the proceedings, but we think it right that they should face the financial consequences of their decision to intervene. However, having listened to arguments in the other place we are persuaded that there may be a case for some modification of the provisions and we look forward to considering possible amendments.

Secondly, Part 4 limits the scope to use minor technicalities as a foundation for a judicial review designed to bring about delay by building on an existing approach taken by the courts. This will bite on claims based on a minor flaw in a process, where the outcome of that process for the applicant was highly unlikely to have been changed by the flaw. Our change will mean that, in those situations, the court should not grant permission to continue, or a remedy.

By taking that approach, other more meritorious judicial reviews, in which it is likely or probable that there would have been a difference, can proceed more quickly, given the freeing up of scarce judicial resources. Where there is any significant doubt in the court’s view over whether a procedural failing would have made a difference to the end result—perhaps the grant of a licence or the positioning of a pedestrian crossing—the clause would of course have no effect. Consequently, this clause will be very far from a “get out of jail free” card for poor administrators. I trust that, through the consideration of the Bill, I will be able to demonstrate these points to the House’s satisfaction. However, I cannot stress too strongly that we are not abolishing judicial review.

The shadow Lord Chancellor in the other place invoked the impending anniversary of Magna Carta and said that the Government were,

“depriving citizens and communities of their rights to challenge power”.—[Official Report, Commons, 17/6/14; col. 1073.]

I am confident that the noble Lord, Lord Beecham, has a rather more secure grasp of legal history—judicial review, as we know, started in the 1970s—and that he and others of your Lordships will accept that acknowledging the value of judicial review does not preclude Parliament carefully scrutinising the extent to which it should be used to frustrate the legitimate exercise of power by a democratically elected body. The Government consider that ours is a balanced package of measures which will ensure that judicial review will continue to operate effectively and appropriately.

The Bill contains a wide range of important proposals to ensure that we deliver a justice system that people can be proud of. It ensures that offenders and claimants take responsibility for their actions and that our laws reflect the 21st century. I feel confident that the great expertise that can be found in your Lordships’ House will be brought to bear on the Bill. I look forward to debating it and benefiting from that expertise. I hope that noble Lords will support the outcomes it seeks to achieve. I commend the Bill to the House. I beg to move.

Criminal Justice and Courts Bill

Lord Faulks Excerpts

Monday 30th June 2014 Lords Chamber

[Lord Faulks]

My Lords, I said in opening that I anticipated that the Bill would receive scrutiny of the highest order by your Lordships, and this Second Reading debate has given an indication of the level of scrutiny that your Lordships’ House can anticipate where all these provisions are concerned.

It has been a full debate and I will have an opportunity to read carefully all the contributions that have been made—as indeed will the Secretary of State. I hope that noble Lords will forgive me if I do not respond to every single point that was made, time being what it is. If I single out some points, I hope those whose points are excluded will not feel that they have gone unrecognised or that they will not be appropriately responded to in due course. It has been an intensely serious debate, although references to Philip Larkin, John McEnroe and Walter Matthau provided slight light relief during its course. Unfortunately, few noble Lords were as brief or as accommodating as my noble friend Lord Black.

I can, however, begin with what I hope will be one or two reassuring propositions. First, there was a suggestion that there might need to be an amendment to deal with what has been described as “revenge porn”, referred to by the noble Lord, Lord Marks, and my noble friend Lady Barker. There seems to be a great deal in that, and I am happy to meet them and consider any suggestions to include it in the Bill.

I said in opening that I would also consider amendments to satisfy, I hope, some of the concerns about the role of interveners in judicial review proceedings. I do not want to give the House the impression that I am thereby, as it were, handing over a blank cheque, but I am anxious, if possible, to accommodate some of the concerns of many noble Lords in this area.

The noble Lords, Lord Blair and Lord Low, referred to a campaign, if I can call it that, from Families Left Behind and the suggestion that there should be some statutory duty imposed on the sentencing tribunal to take into account the effect of the sentence on those who may be left behind when somebody is deprived of their liberty. In my limited experience as a judge, this, and the consequences thereof, will first of all be considered by a judge in sentencing. The probation service will be aware of the consequences and local authorities have their own duties that will usually be triggered by the information that is available in court. Noble Lords may be right that some slip through the net. I will certainly consider any suggestions along the lines that have been described.

On the question of the meaning of the words “et cetera”, raised by my noble friend Lady Barker in the context of malicious communications, I think it is defined in the Malicious Communications Act 1988. It deals with all the various communications one would expect it to cover in the light of modern media.

The noble and learned Lord, Lord Lloyd, raised, as he has done many times before, the question of IPP prisoners and their plight. I look forward to debating any amendments in that respect in more detail. I responded to a debate on 27 March this year—in some detail, I hope—but I fear I will not be able to satisfy him today. There are no current plans by the Secretary of State to exercise the power to amend the Parole Board’s release test for prisoners serving such sentences.

I noted that the party opposite was silent on IPP prisoners. I am still not quite sure what its position is, and whether it opposes the very fact that the sentencing power was repealed as a result of the intervention of the former Lord Chancellor. I fear that I cannot help the noble and learned Lord for the moment, but I hope he will acknowledge—if not overtly, then tacitly—the fact that Ministry of Justice officials have been endeavouring hard to help him by providing details for the purposes of preparing this speech, and, indeed, any further interventions.

I was not aware that I had the pleasure of a meeting forthcoming with the noble Baroness, Lady Thornton, to describe better the definition of rape on the internet. I look forward to that. I am sure that the Government, the Opposition and all noble Lords have similar intentions where this is concerned. We welcome any advice on trying better to define what the evil is that we all aim to stem.

I respectfully endorse what the noble and learned Lord, Lord Brown, said about personal injury claims and the evil that the Government are trying to eliminate. Frankly, we do not think that a judge will have any difficulty recognising fundamental dishonesty. We are talking not about a schedule that contains some slight exaggerations or minor inaccuracies, but about fundamental dishonesty. If we ask a jury to decide a question of what is dishonest or not, surely we can entrust a judge to decide whether, in appropriate cases, there is fundamental dishonesty. The Government are appalled by the explosion of litigation in claims that involve, frankly, lying and fraud. Whether through the Claims Management Regulator or through this particular clause, I am sure that we share with all noble Lords the desire to reduce, and, if possible, eliminate it.

The redefinition in statutory terms of misconduct in public office was broadly welcomed, although not by the noble Lord, Lord Blair. There are some areas where it may not possibly apply. We do not think that police officers should be singled out, but on the other hand they are in a position where they serve the public in a very high-profile context. We cannot avoid the fact that there have been instances of police corruption. The Government consider that putting a clear offence on the statute book is not to persecute the police or to single them out as opposed to other public employees but to make clear the nature of the offence and, in appropriate circumstances, to provide the basis for a prosecution.

A number of noble Lords asked about the Parole Board and about the impact on its workload of the provision in Part 1. The provisions that will have the greatest impact on the Parole Board are the new discretionary release arrangements for extended determinate sentences and certain child sex and terrorism offences. However, it will be quite some time before the first of these cases starts to filter through the board and we have taken account of that. We are working with the Parole Board to assess the impact of the Osborn judgment. Additional in-year funding has been provided to the board, as well as an increased budget allocation for 2014 and 2015.

The offence of wilful neglect was mentioned by, among others, my noble friends Lord Hunt and Lady Barker. The House is well aware of the background to this offence and why it was considered necessary to make it part of the statute book. I listened carefully to concerns about the range of legislation that may apply in neglect cases and I accept that there may be a degree of overlap. However, where that occurs, it is for the police and the CPS to determine the most appropriate offence to pursue. The CPS regularly provides guidance in this respect. We think that it is far better to close any gap in working practice to arrive at the best solution than to retain even the possibility of any lacunae in the law.

My noble friend Lady Barker had a specific query in relation to Section 44 of the Mental Capacity Act. If I may, I will consider the point that she raised and write to her.

I come to the area of perhaps the most difficulty—the question of secure colleges. The noble Baroness, Lady Stern, said in her excellent and informative speech that it was one thing to point out the number and cost of young offenders who were currently accommodated in various institutions and who reoffended but another to move to the proposition that secure colleges were the answer. I hope that I do not mischaracterise what she said. Equally, one could turn that round and say that those bare facts simply do not justify the status quo. The status quo is not, we suggest, an appropriate response to this dreadful cycle of reoffending. We suggest that secure colleges, with their emphasis on education, are a solution. Of course, no one can guarantee the success of any solution to this recurring problem but we hope that this one will provide a real concentration of education, which most of these young people have never had before.

A number of anxieties were expressed in very firm terms about secure colleges: the question of different ages and different genders, and the possibility that secure colleges will be remote geographically. I will be hosting an open session for interested Peers to share our initial designs for the pathfinder secure college. As I mentioned in my opening speech, we will consult on our approach to the secure college rules ahead of Report.

I was asked whether it was our intention to replace all secure youth accommodation with secure colleges. Our long-term vision is for a network of secure colleges across England and Wales. That transformation cannot happen overnight, and we are committed to improving existing provision for young people in custody.

I very much hope that as a result of no doubt probing amendments and further information, which I shall be happy to provide, your Lordships’ House will share the Government’s vision of secure colleges to deliver high-quality and broad-ranging facilities that can meet the diverse needs—often special needs, I accept—of young people in detention. It requires something that simply cannot be achieved in a small local facility—desirable though such facilities are, as was well described by my noble friend.

[Lord Ponsonby of Shulbrede]

Before the noble Lord leaves the point about the network of secure colleges, does it follow that there would be three secure colleges to deal with the whole of England and Wales? There would be around 300 children in each college, making about 1,000 altogether? The noble Lord said that a few secure children’s homes would be retained. Does it therefore follow that there are to be three secure colleges for the whole of England and Wales?

--- Later in debate ---

[Lord Faulks]

I understand the noble Lord’s mathematics and on the current numbers there would be a logic behind them, but this is a pathfinder college and as such we are not committed to going further. However, it may well be that we will be moving in that direction. If your Lordships’ House or Parliament does not share our vision for secure colleges, the construction of the next generation of facilities will have to take place within the existing framework for young offender institutions in secure training centres. But we believe that a fresh approach and a new framework will provide a better way of ensuring that our planned new institutions educate and rehabilitate more effectively than the existing ones.

A great deal of anxiety has been expressed about the rules, in particular the use of force. In answer to my noble friend Lord Carlile, private providers will not be able to make up their own rules on the use of force, and it is not true that they will be able to do so. Rules on the use of force will be clearly set out in the secure college rules and we have committed to consult not just on the rules but on the content of the rules.

[Lord Beecham]

Can the noble Lord confirm that the rules will be subject to parliamentary approval?

[Lord Faulks]

They will be part of the consultation in the course of amendment but not specifically subject to parliamentary approval as such. I say that subject to correction, but I think that that is the position. My noble friend Lady Berridge asked about reporting restrictions and made an important point about the youth court. I can confirm that the Government are looking carefully at that particular issue.

The question of juror research was raised by noble Lord, Lord Blair, and the noble and learned Lord, Lord Brown of Eaton-under-Heywood. I have some sympathy with the point about the need for greater understanding of what is or is not permitted in terms of research into juries. I cannot commit the resources of the Ministry of Justice to provide the information being sought, but I will take this back and try to provide some form of clarity. Professor Cheryl Thomas appears to encounter no difficulty in analysing the information and I think the contrary argument is that any other information tends to be anecdotal. It does seem to me that simply to accept that jury trial is the right answer without proper examination is not a proper approach to this matter. I also note the comments made by the noble and learned Lord about Lord Roskill’s commission all those years ago, and I take his point about the reduction in costs. Sooner or later, viscerally attached though we are in this country to trial by jury, that does not obviate the need to examine and re-examine whether it is appropriate in all circumstances. As he quite rightly said, the Defamation Act 2013 is a recent example of where trial by jury is no longer to be available.

Perhaps I may conclude with some comments on Part 4. To say that this part was not entirely welcomed would be something of an understatement. Noble Lords have made some remarkable speeches in the course of the debate and it is absolutely clear that the relevant clauses will be subject to the degree of scrutiny that one would expect on a series of provisions of this sort. I hope that noble Lords will forgive me if I keep my remarks short and respond in detail to the many amendments that I expect to receive on these matters in due course.

It was suggested that there had not been much growth in judicial review as most of them were either immigration or asylum judicial reviews. I would like to set out to the House that, as is shown in the published national statistics, the number of civil judicial reviews, not including immigration and asylum claims, increased by 27% between 2000 and 2013, albeit that we accept that such claims continue to represent a small proportion of the total number of claims. However, the Government continue to believe that there are fundamental issues with how judicial reviews are brought that require proportionate reform. Although I know there was little support for these changes, I think it was accepted that from time to time this area of law can need examination, re-examination and amendment. I said in opening and I repeat now that it is no part of the Government's approach to this that judicial review is not a vital part of the checks on administrative action, whether on central or local government or other arms of the state. We are concerned by these various provisions to restrict the costs of obtaining judicial review and to ensure that interveners’ participation in reviews is at least more circumscribed than it is at the moment. I accept that interveners can provide valuable assistance in judicial reviews having—I declare an interest—taken part by representing one of the parties and on more than one occasion acting for an intervener. However, there has been a proliferation of interventions. If one looks at reported cases now, almost any case at Appeal Court level appears to attract a considerable level of intervention and some of it is duplicated. It often takes the form of very lengthy skeleton arguments and many volumes of authorities. Although judges do their best to make economic use of the available material, all parties involved in the case are thereby put to the expense of having to deal with the magnitude of the contributions made by interveners.

While I do not reject the proposition that interveners can add value, we must look at the cost consequences of those who use judicial review as a form of campaign. That word was used during the course of the debate by the noble Baroness, Lady Campbell of Surbiton. Campaigning organisations have an enormous value, but it should not be thought that judicial review is simply a method of campaigning. Judicial review is concerned with unlawful activity: it is not just another way of expressing the various objectives of a campaign.

[Lord Beecham]

Does the Minister accept that no intervention can take place without the leave of the court? What he is saying is surely somewhat derogatory of the decision of the judges to permit interventions.

[Lord Faulks]

My answer to that is that the hypothetical Mr Justice Beecham on a busy list is told that there might be an intervention of one sort. He may not be able to anticipate the level of the intervention that is then forthcoming in terms of its size and the number of others who intervene. The noble Lord scowls, but I am endeavouring to answer his question so perhaps he should not do so. Then, in due course, a hearing takes place by which time an enormous amount of material can be provided and the scope of the case can expand. This is not an evil, but it ought to be controlled. It is difficult without continuity of the judges involved in this to control it in the way that it should be.

[Lord Woolf]

Does the Minister accept that it is very important to look at the situation again with regard to these matters of management after the burden of immigration and asylum cases has been removed from High Court judges? They were struggling to keep abreast of those cases and they were deprived of the time that they should now have to look after the proper management of these cases.

[Lord Faulks]

I absolutely understand what the noble and learned Lord is saying about that. Such was the volume of their work that it may have been difficult to make the decisions that having more time available would have allowed them to make. I take that point. As I have indicated, the Government are listening on the question of interveners. There is merit behind the Government’s provision and we are looking for the best way of reflecting that in any amendment that finally finds its way on to the statute book.

[Lord Woolf]

I make one further point, if the Minister will be patient—I apologise for interrupting him again. Are these matters not best dealt with by discussions through the usual channels between the Ministry of Justice and the judiciary, rather than by going to litigation, which removes the judge’s discretion? I urge the Minister to think about whether this could be achieved in that way.

[Lord Faulks]

I am grateful for that advice and, if I may, will perhaps respond no further at this stage.

The information about financial resources is also a matter that will be probed in some detail, although time does not permit me to go into a detailed response on that now. I have heard the arguments that have been raised, and there will no doubt be profitable scrutiny of those provisions.

Judicial review is important but it is not a vase that would be caused to crack by simply touching it. We need to look carefully at the remedy but, none the less, it is one where change should be made.

I said at the outset that I could not cover everything. I have covered, I hope, some of the points that have been made and I look forward to dealing with them all in Committee—if, of course, your Lordships are prepared to give this matter a Second Reading. I conclude my speech by asking the House to give the Bill a Second Reading.

Bill read a second time and committed to a Committee of the Whole House.

Divorce (Financial Provision) Bill [HL]

Lord Faulks Excerpts

Friday 27th June 2014 Lords Chamber

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

My Lords, like all other noble Lords, I thank the noble Baroness, Lady Deech, for introducing the Bill and for enabling the House to debate the appropriate division of financial provision on divorce. She has done the House a great service by prompting this high-quality debate.

The Bill has the highly laudable aim of seeking to assist divorcing couples and civil partners undergoing separation in resolving disputes over the division of property. It is intended both to recognise and enforce prior agreements between separating spouses and substantially to amend the law on financial provision on divorce.

The Bill makes fundamental changes to the law on financial provision on divorce as it has applied for over 30 years. However, it differs from and goes beyond recommendations made by the Law Commission report, which the Government are currently considering. Comments were made about the speed at which the Law Commission has historically proceeded. There is no criticism of the quality of the work that the Law Commission does and I echo the comments made by my noble friend Lord McNally about the way in which a number of Law Commission Bills have been going through Parliament recently.

The Government are not anxious to pre-empt the consideration that is taking place of the Law Commission’s report. In any event, the Government have a number of concerns about the Bill’s provisions and whether these sufficiently safeguard the needs of children and families so as to avoid potential hardship. I will set out these concerns by reference to the current law, the proposals in the Bill and the proposals on matrimonial property agreements made by the Law Commission.

The current law on financial provision on divorce provides a number of important safeguards. This is governed in England and Wales by the Matrimonial Causes Act 1973. Section 23 provides for lump-sum payments and various other forms of financial provision; Section 24 enables property transfers; and further provisions allow for orders for the sale of property, pension-sharing orders and so on.

The courts have a wide discretion as to what orders to make in any particular case and must have regard to the factors set out in Section 25 of the Act. On the face of it, that might seem to be a fair state of affairs. However, there has been a great deal of criticism during the course of the debate that, although the Act provides for all these matters to be taken into consideration, it nevertheless produces uncertainty of outcome—too much depends, perhaps, on the idiosyncrasies of particular judges and fashions—and it does not enable parties to be sufficiently clear on divorce about what is the likely division of property.

However, Section 25, importantly, says that the first consideration of the court is the welfare of any child of the family under the age of 18. Other factors in Section 25 include the income and earning capacity of the parties, contributions made to maintaining the home and children, the financial needs and obligations of the parties, the age of the parties, the duration of the marriage and any physical or mental disability suffered by either.

The noble Baroness’s Bill provides that Section 25 will be repealed and will therefore no longer have effect in relation to orders for financial provision between the parties to a marriage or civil partnership. The Government would be particularly concerned if this had the effect of weakening the protection given to children when their parents divorce. The noble Baroness has indicated that maintenance for children will not be affected, but the Government are concerned that the removal of the welfare of minor children as the court’s first consideration in making financial provision for spouses might cause adverse consequences for children. This would plainly require a great deal of consideration.

Clause 6 addresses the provision for children of the family and provides that the court must have regard to any order for support of a child of the family, the age and health of any child, the educational and financial circumstances of the child and so on, but it does not make the welfare of the child the first consideration of the court, and thus may not provide as much protection for children as the current law. The Government think that the court should look at the needs of the children first and then go on to consider the division of property between the parents.

The Bill proposes that subject to certain exceptions, matrimonial property, defined as is, should be divided equally between the parties. The Government are concerned that this would also be potentially unfair and could cause hardship, particularly for poorer families and for families with children. The noble Lord, Lord Kennedy, referred to the danger of a one-size-fits-all provision. Moreover, reference has been made during the debate to the changes in society since 1973, including the demographic changes described by the noble Baroness, Lady Bakewell, and women’s increasing equality. None the less, as the noble Baroness, Lady Meacher, said, the old models of marriage do still exist in some sections of society and we cannot ignore them when deciding on an appropriate change to the law, if indeed any is needed. In fact, the Law Commission recommended that there should be no change to the law on need in financial provision on divorce.

The Bill provides that periodical payments for spousal maintenance should be for a maximum period of three years and that lump-sum payments and periodical payments should be intended to enable the recipient to become independent of financial support within three years. An absolute three-year limit on maintenance would be similar to the law in Scotland, referred to by the noble and learned Lord, Lord Hope, and my noble and learned friend Lord Mackay. Having looked at the matter, I see that it emanated from a recommendation by the Scottish Law Commission that eventually became part of Scottish law. But, again, the Government are concerned that this could cause hardship and may be inappropriate for many couples. Having to adjust to a new financial reality may take longer than three years, so the Government currently consider that it is better for the court to retain a discretion to provide as it thinks best to meet the circumstances of each individual family.

[Lord Davies of Stamford]

My Lords, I am listening to the noble Lord with great attention. Would he be kind enough to say what it is that makes circumstances or human nature different in England from what they are in Scotland?

[Lord Faulks]

I am not altogether sure whether that is a serious question, but of course human nature is not different. The answer is that there is no perfect solution to these difficult problems, as I am sure all noble Lords would agree. The Scottish solution is one that is certainly worthy of great consideration. The current solution in the law of this country is rather different. At the moment we are all concerned to find a solution which best serves the interests of all parties on divorce. Scotland has much to teach us, but it does not have necessarily the perfect answer. We need to learn from the experience in Scotland while accepting that human nature is the same in Scotland as it is in England.

As I say, the Bill provides for matrimonial property agreements to be binding upon couples on divorce. In its proposals on matrimonial property agreements, the Law Commission has strongly recommended that the courts should be able to depart from a matrimonial property agreement where this is considered necessary in order to protect the needs of a spouse or in the interests of any children. The Bill departs from that proposition. In its proposals on matrimonial property agreements, the Law Commission set out a comprehensive list of the requirements necessary to underpin enforceable agreements made prior to divorce. In considering the Law Commission’s proposals, the Government wish to reflect on the sufficiency of safeguards before committing to legislate to make agreements enforceable. We are currently considering those and, as my noble friend Lord McNally said, we will announce our response to them in the very near future. That will be in August—albeit that I heard what he said about the undesirability of reflecting and responding in that particular month.

The Bill’s proposals differ quite substantially from the recommendations made by the Law Commission in the light of really extensive consultation, which included consultation with family practitioners—although I am glad to say that this debate has benefited from the contribution of family practitioners. The proposals in the Bill are substantially different and their likely effects are at least unclear.

I appreciate, as I am sure the whole House does, the noble Baroness’s desire to ensure that financial division on divorce and on dissolution of a civil partnership is made simpler so that people will much more easily be able to estimate what they are likely to receive and be better able to negotiate with each other, and that couples should be able to enter into agreements to determine what they would receive on divorce.

The Government are considering the Law Commission’s report on matrimonial property agreements and how these could be made binding, and will respond in the near future. The report recommends making information available on the likely outcomes of financial applications on divorce—that has been developed during the debate—but recommends that there should be no change to the law governing “need”. The Government are concerned to give proper consideration to these and all the recommendations made by the Law Commission.

The Government recognise that divorcing couples often need help to reach an agreement and should be encouraged to avoid court proceedings. There is unanimity that court proceedings very rarely help in resolution of these disputes. They are far too expensive and the result is usually damaging both financially and, very often, to the future happiness of warring parties and children. The Government are therefore particularly anxious to encourage people to use family mediation and other forms of alternative dispute resolution.

For those who are eligible, legal aid is available for mediation. Under the Children and Families Act 2014, from 22 April this year applicants for financial orders and for financial provision on divorce must attend a mediation information and assessment meeting—

[Baroness Shackleton of Belgravia]

Mediation and indeed prenuptial contracts are practically impossible unless the outcome has some certainty as to what you are mediating for or what you are trying to anticipate when you are drafting a prenuptial contract. Unless the law is tidied up so that practitioners understand what the outcome would be to prevent the litigation, it is impossible to mediate.

[Lord Faulks]

I take the noble Baroness’s point but those helping the mediation, albeit that there is inevitably a measure of uncertainty because of the discretion given to the court, by reference to their experience and therefore what judges are customarily doing in a particular case, will nevertheless be able to advise on what is a likely outcome and what is perhaps in the best interests of the parties, and at least assist with the possibility of their not proceeding to court to have the matter heard there.

The application forms for the orders contain details of the provisions for the meetings and potential exemptions that might apply. The Government believe that these requirements will bring a significant number of people to learn about mediation and use it to resolve their disputes. Notwithstanding the point that the noble Baroness, Lady Shackleton, makes about uncertainty, if parties are happy with the outcome, that is of itself a desirable purpose in having this mediation. As my noble friend Lord McNally said, mediation has generally got a good story to tell, and increasingly that is the case.

The Government will not oppose the Bill receiving its Second Reading today but do have reservations about its approach and scope. What, however, I can take back to the department is the very clear—in fact, I think unanimous—view of those participating in today’s debate that the time has come for Parliament to intervene. That of itself is an important message that I can take back to government decision-makers about the future of this field of law. However, we consider that we are already addressing these issues. We shall continue to do so, greatly assisted by all the work that the noble Baroness has done and by the contributions to this excellent debate by all noble Lords.

Women: Custodial Sentences

Lord Faulks Excerpts

Thursday 26th June 2014 Grand Committee

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

My Lords, I join others in congratulating the noble Baroness, Lady Healy, on securing this debate. Your Lordships have long had an interest in the plight of female offenders. I am sure that noble Lords will not misunderstand me if I say that a number of them who have participated in this debate are very much recidivists in addressing the issues that we must confront.

Noble Lords will, of course, know that the decision to send someone to prison is a matter for the independent judiciary. Courts take into account all the circumstances of the offence and the offender in determining this, including whether the offender is a primary carer, as will often be the case. Courts must consider custody only where they are satisfied that the offence is so serious that neither a fine alone, nor a community order, can be justified—the so-called custody threshold.

I should declare an interest as having sat as a recorder for some 10 years until relatively recently. I can tell the Committee how slow someone in my position is to send a woman to prison, for all the reasons that have been so ably outlined in this debate. In fact, I can hardly think of an occasion when I had cause to do so.

The Legal Aid, Sentencing and Punishment of Offenders Act 2012 introduced a new provision which means that people should be released on bail if it is unlikely that they will receive a custodial sentence on conviction. That provision should go some way to dealing with the point made by a number of noble Lords about women who are remanded and then ultimately not sent to prison when their case comes up for sentence.

As was acknowledged by a number of noble Lords, custody must be available where appropriate, but only when the thresholds are passed. I should be absolutely clear that the Government are committed to making sure that all offenders are given the support they need to turn their lives around. That commitment is central to our transforming rehabilitation reforms. We also recognise the need to address women’s specific needs where these differ, as they often will, from those of men.

Noble Lords will recall that the Government published their strategic objectives for female offenders in March last year. These are aimed at reducing the number of women in custody—which is desirable for all the reasons that have been given throughout this debate—by making sure that women receive the support that they need in custody and in the community to address the factors associated with their offending. Those are fine words, but what do they mean in practice?

First, our transforming rehabilitation reforms mean that those serving sentences of less than 12 months will, for the very first time, be subject to statutory supervision, including a licence period in the community aimed at supporting successful community reintegration and rehabilitation. As was rightly pointed out, proportionally more women than men are serving short sentences, so they, in particular, will be beneficiaries of this element of the reform.

The companies bidding for contracts under our transforming rehabilitation reforms must demonstrate in their bids an effective approach to the identification and recognition of women’s needs to make sure that those needs are properly addressed. To assist, we have made available guidance which identifies the key gender-specific factors associated with women’s offending and provides signposting to specialist services. The contracts will also require providers, where practicable, to give women the option of being interviewed in a women-only environment, having a female supervisor and not being the only woman in an otherwise all-male group on, for example, unpaid work, subject to any requirements.

The noble and learned Lord, Lord Woolf, quite rightly drew attention to Section 10 of the Rehabilitation of Offenders Act. I join him in paying tribute to the Prison Reform Trust in this context. Section 10 relates to female offenders and was widely supported across the House. It came into force on 1 June and the new requirement specifically to address the concerns of female offenders will apply both to contracts with CRCs—community rehabilitation companies—and services provided by the new National Probation Service.

My noble friend Lady Hodgson of Abinger raised the suggestion of a women’s commissioner, and the noble Lord, Lord Ramsbotham, suggested someone with overall control of women’s prisons, an official or even a Minister. All those points have been made eloquently before. The Government do not think for the moment that that is appropriate. It would be a significant cost at this time. However, I hope and believe that the provision of Section 10 will be something of a catalyst—as the noble and learned Lord, Lord Woolf, said. Together with the other initiatives, it should help to address the many issues that have been identified in this debate.

We are working towards ensuring sentencers have robust community options at their disposal. Under the guidance of the Advisory Board on Female Offenders, we are working with Greater Manchester to develop a pathfinder that will look at how we can provide robust and effective sentencing options in the community for female offenders that may divert women from custodial sentences, where appropriate.

We are also working with the Department of Health, the Home Office and NHS England to develop a model for youth and adult liaison and diversion services at police custody and courts. That service will assess and refer individuals with a range of vulnerabilities, including mental health problems and substance misuse. Those with mental health problems represent a considerable proportion of women who are or might be sent to prison. The Department of Health has committed £25 million this year to test a liaison and diversion model in 10 different areas in England.

For women who are given custodial sentences, we are making changes to the women’s custodial estate to keep women closer to their home. This is one of the issues raised during this debate. It will help them to maintain links with their children and families and also support them to get the skills they need to find employment on release. We are increasing capacity at prisons close to conurbations, including giving priority to Welsh women at Eastwood Park. We are also improving access to interventions and resettlement opportunities across the entire estate, supported by the fact that all women’s prisons will become resettlement prisons.

I was asked questions about Askham Grange and East Sutton Park. I cannot discuss the Government’s intention to close these open prisons as this is the subject of ongoing litigation, as the noble Baroness, Lady Gale, may know. However, we are reconfiguring the estate to allow women to be held closer to home, for the very reasons that have been identified by a number of noble Lords.

In addition, an officials’ sub-group under the Social Justice Cabinet Committee has been set up to examine the relationship between women’s offending behaviour and debt and finance issues. The support of the SJCC for this work is a good example of the progress we are making. We will continue to work with other government departments to make it easier in the future for women to move away from crime.

I think that the noble Baroness, Lady Royall, asked me about ensuring that community services will be maintained following the transforming rehabilitation plan. As well as the Section 10 requirement, we are continuing to fund women’s community services in 2014-15 and taking appropriate steps. There is not a gap between those existing services and whatever will be provided by the new providers. As the noble Baroness will understand, this is a complex matter, and I will write to her in a little more detail about how we are going to ensure this continuity. I wholly understand her concern about it.

I conclude by saying that the anxiety to avoid sending women to prison is one that is of course shared by the Government and all noble Lords, as is the desire to explore alternative options. We believe that the initiatives we are taking with transforming rehabilitation represent a real opportunity to improve this. As I said, those who are serving a sentence of less than 12 months will, for the first time, be able to get help. I think that noble Lords will be peculiarly aware of the danger that when women, and of course men, leave prison they are lost. They do not know what the next step is and are particularly vulnerable to reoffending and coming back to prison. We believe that this will be significantly addressed by our changes.

We are concerned that the strategic objectives on female offenders will be addressed. The report by the noble Baroness, Lady Corston, has remained extremely valuable. Almost all her recommendations have in fact been implemented; I think it was something like 40 out of 43 of them, so it remains an extremely valuable source. I repeat my gratitude to all noble Lords for their participation in this important debate.

Crime and Courts Act 2013 (County Court and Family Court: Consequential Provision) Order 2014

Lord Faulks Excerpts

Wednesday 18th June 2014 Lords Chamber

[Lord Faulks]

Moved by

That the draft orders laid before the House on 9 April and 6 and 14 May be approved.

Relevant documents: 26th and 27th Reports, Session 2013-14, from the Joint Committee on Statutory Instruments, 1st Report from the Joint Committee on Statutory Instruments. Considered in Grand Committee on Monday 16 June.

Motions agreed.