Insurance Industry: Whiplash

Lord Faulks Excerpts

Tuesday 1st March 2016 Lords Chamber

[Lord Hayward]

To ask Her Majesty’s Government whether they have any plans to meet representatives of the insurance industry to discuss their treatment of claims for whiplash injuries.

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

My Lords, meetings have been held with representatives’ groups from both claimant and insurer sectors at both ministerial and official level to discuss the reforms announced in the Chancellor’s Autumn Statement. Ministers and officials are continuing to engage with interested stakeholders as work on the detail of the Government’s whiplash reform programme develops.

[Lord Hayward (Con)]

When my noble friend next meets representatives of the industry, will he ask them to explain cases such as that of Mr John Elvin of Watford? Mr Elvin was involved in a negligible traffic incident where there was no apparent damage to either vehicle. At the first opportunity, he notified his insurers—esure—that he was subject to what he believed was going to be a false whiplash and damage claim. Despite a series of requests, esure has given no indication that it has investigated this case in any way. Is this not an example of the reason why the industry is known in this country as “the whiplash capital of the world”? It is the consumer who ultimately pays for this cavalier attitude.

[Lord Faulks]

My noble friend is quite right to draw the House’s attention to the very major problem of the significant increase in the number of claims and our large number of claims in comparison with other European countries. One of the reasons that insurers give for settling these claims is that it costs them too much to fight the case. Of course, if our plans to raise the small claims limit to £5,000 come into effect, this will no longer continue to be a valid reason for not contesting claims. Anyone who is notified of what sounds suspiciously like a fraud should not do anything to encourage it. If individuals are invited to take part in such an endeavour, they are potentially committing a criminal offence.

[Lord Thomas of Gresford (LD)]

My Lords, the Minister referred to the court costs. Have the coalition’s policies of banning referral fees produced any results? Has the number of frauds gone down? Are there any statistics on that as yet, following the Insurance Act 2015?

[Lord Faulks]

The Government are attacking this problem on a number of different fronts. Referral fees is one; the LASPO reforms is another; and there is the MedCo portal, which means that all whiplash injuries must go via a neutral evaluation with limited costs. All are contributing to a decrease in the number of whiplash claims, but there are still too many, and we still feel that there is fraud at the root of all this.

[Lord Beecham (Lab)]

My Lords, of course no one would defend fraudulent claims, whether for whiplash or other injuries. However, the raising of the small claims limit to £5,000 will represent a further reduction of access to justice to people and even businesses of modest means with valid claims. Given that the Government claim the insurance industry—in which motor insurers alone receive £15 billion a year in premiums—will save £1 billion from the increased limit, having already saved £7 billion in the last four years, what steps are the Government taking to ensure that any further savings from their latest surrender to the industry’s interests will be substantially passed on to policyholders? Or is this to compensate the industry for the insurance tax levy increase, which it will no doubt in any case pass on to policyholders?

[Lord Faulks]

There is no question of the Government surrendering to the insurance industry, as the noble Lord puts it. The insurers already announced that they will reduce the premiums to insurance companies by £50. We will watch insurance companies very carefully to see whether they translate their promises into action. Of course, as all noble Lords will know, insurance is a highly competitive world. All of us will have been irritated by the invitations to compare the market. Ultimately, the market should prevail.

[Lord Walton of Detchant (CB)]

My Lords, the whiplash phenomenon is thought to occur usually when a vehicle is struck heavily from behind, with the result that the passenger or driver in the vehicle that is hit has a sharp flexion of the neck followed by a sharp hyperextension. If it happens that the individual in question already has disc degeneration in the neck, there is no doubt at all that this may on occasions result in actual damage to the spinal cord with significant physical results. However, in the great majority of so-called whiplash cases, no organic abnormality can be detected. Indeed, there is considerable evidence that some of the claims for whiplash injuries are spurious. Having said that, is it not time yet again for the Government and the medical profession experts in this field to come together to see if they can promulgate some objective means of assessing the significance of these claims?

--- Later in debate ---

[Lord Faulks]

The noble Lord, with his experience as a neurologist, highlights the complicated nature of this injury and the fact that it is not usually detectable on scans. He also made the point about pre-existing degenerative injury. The effort to achieve some sort of consensus among medical experts has been helped by the MedCo portal. It is remarkable how many of the reports now have a more favourable prognosis than used to be the case before it was introduced.

[Lord Hunt of Wirral (Con)]

I declare my interests as set out in the register. Will my noble friend the Minister accept that there is serious concern not only in this House but also in the insurance industry at the way in which we have allowed a situation where 80% of all personal injury claims are said to be whiplash claims? Will he find some way of stopping these cold calls? One of my colleagues just had a cold call from a claims management company calling itself the “Department of Compensation”. Will my noble friend please get across to everyone that these people are potentially committing a very serious criminal offence?

[Lord Faulks]

My noble friend is, of course, absolutely right. The Government are determined to stamp down on this. Legislation is already in place, primarily enforced by the Information Commissioner’s Office. The Government have recently consulted on bringing forward secondary legislation to require all direct marketing callers to provide their calling line identification. Individuals can have a Telephone Preference Service installed on their telephones and we are also exploring the possibility of call-blocking devices for vulnerable consumers.

When somebody rings me, as they do from time to time, inviting me to take part in a fraud, I endeavour to extract details from them without revealing the position I hold. Unfortunately, my voice appears to cause them only to put down the phone.

[Lord Dubs (Lab)]

My Lords, will the Minister confirm that the rate of whiplash claims in Britain is 20 times as high as it is in France? Have we something to learn from our friends across the channel?

[Lord Faulks]

It is surprising that that comparison should take place at this particular time in the political weather. The noble Lord is quite right. Some 9%, or 225,000, of bodily injuries in France were whiplash, but 76%, or 375,000, in the United Kingdom were.

Armed Services: War Crimes

Lord Faulks Excerpts

Tuesday 1st March 2016 Lords Chamber

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

My Lords, international humanitarian law and domestic criminal law are the bodies of law to determine whether British troops have committed war crimes. Our Armed Forces are among the best in the world and operate to the highest standards of discipline. The forthcoming Bill of Rights will protect their ability to do their jobs without being subject to persistent human rights claims.

[Lord Naseby (Con)]

Does the Minister agree that British troops should only be sued for violation of human rights if they have already been convicted of crimes contrary to the laws of armed conflict?

[Lord Faulks]

All our troops should, of course, be subject to the law: none is above it. However, the question of the Human Rights Act raises rather different matters. There has been a number of claims based on alleged contraventions of the convention and, thus, the Human Rights Act. These have caused considerable —and sometimes unjustified—difficulties for soldiers and the Armed Forces. This is why our forthcoming Bill of Rights will attempt to deal with these persistent human rights claims.

[Lord West of Spithead (Lab)]

My Lords, long-retired members of our military who fought for us in Northern Ireland are open to arrest, bail and investigation for events that happened up to 40 years ago. Is it true that members of the retired military community who believe there is no even-handedness between the treatment of the terrorists who are trying to kill us and the military who are protecting us are raising with the PSNI a raft of incidents—some 40 so far—where members of the IRA and splinter-IRA have killed or maimed uniformed people? How are these cases being taken forward?

[Lord Faulks]

The noble Lord makes a good point. I am unable to answer his specific query, but the Prime Minister has tasked the National Security Council to produce a comprehensive plan to stamp out this industry of claims, which is causing precisely the sort of difficulties which the noble Lord has highlighted.

[Lord Craig of Radley (CB)]

My Lords, will the Government introduce any form of Crown immunity for operations overseas?

[Lord Faulks]

The noble and gallant Lord asks an entirely pertinent question. The Prime Minister has asked the Defence and Justice Secretaries to prepare a legislative package to redress the balance. That is clearly one of the matters under consideration, as is derogation from the Human Rights Act. There are a number of other matters which I would rather not go into detail about now, but I can assure the noble and gallant Lord that all these matters will be carefully considered.

[Lord Lester of Herne Hill (LD)]

Is not the Minister in some difficulty in his replies? So long as we remain bound by the European Convention on Human Rights and subject to the jurisdiction of the Strasbourg court, if the Minister and his colleagues introduce a new-fangled Bill of Rights that in any way is incompatible with the convention, it would be futile because the Strasbourg court—if not our own courts—will rule on that incompatibility. Is it not better, therefore, to answer this Question by indicating that for the sake of our soldiers, sailors and airmen, as well as others, we need the proper law to be both a human rights law and international humanitarian law?

[Lord Faulks]

I am sure that the noble Lord will not have forgotten the margin of appreciation. Provided our British Bill of Rights respects the European convention but tailors it to suit the particular challenges that the military faces, it is likely that Strasbourg will respect our interpretation. Of course, we will continue to protect human rights under any regime that exists, and also to respect our international humanitarian law obligations.

[Lord Vinson (Con)]

My Lords, is the Minister aware that the French, much earlier on, exempted their armed forces from prosecution under the Human Rights Act, so we would be following an excellent precedent?

[Lord Faulks]

I am grateful to my noble friend. We are aware of that and it is a matter that shall be taken into consideration.

[Baroness Symons of Vernham Dean (Lab)]

My Lords, the Minister was unable to answer the specific point raised by my noble friend Lord West of Spithead in relation to Ireland. Would he be kind enough to write to him on that?

[Lord Faulks]

I am happy to do that when I have the relevant information to hand.

[Lord Dannatt (CB)]

My Lords, given that there can be no blanket, technical explanation for these circumstances, is the Minister prepared to give an undertaking that where a soldier, sailor or airman acts in palpable good faith, there will be a presumption by the Government to stand with him and behind him in his defence against any action that might be taken against him?

[Lord Faulks]

The Government always stand behind our soldiers but to give a blanket undertaking like that would be exceeding my authority. With regard to battlefield immunity, which the noble Lord may be referring to, combat immunity remains part of the common law, although its contours are rather unclear at the moment, particularly in light of the Smith v Ministry of Defence case about the interrelationship of the Human Rights Act and that immunity. These are matters on which the Prime Minister and the Government are profoundly exercised.

[Baroness Nicholson of Winterbourne (LD)]

Will the Minister allow, under the current military law, for some information to be given to the families of the military police who were killed in Karmat Ali, and which they have so far not received. I was in that city the day after the deaths and all the information is readily available. When will the ministry allow it to be released to the families concerned?

[Lord Faulks]

I will take that request back to the Ministry of Justice and try to have some inquiries made.

[Lord Bach (Lab)]

My Lords, when can we look forward to the draft Bill of Rights and will its timing be affected by the EU referendum?

[Lord Faulks]

My Lords, we are in the hands of the Prime Minister, who has a number of elections to consider —local elections, elections of the devolved assemblies, and the small matter of the European referendum. Noble Lords may have to wait a little longer, but it will of course be well worth waiting for.

Criminal Cases Review Commission (Information) Bill

Lord Faulks Excerpts

Friday 26th February 2016 Lords Chamber

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

My Lords, I add my congratulations to those of others who have applauded the noble Lord, Lord Ramsbotham, for bringing the Bill forward and for his very lucid exposition of the reasons behind it and the history of legislation which gives rise to the need for this significant change. He has made my task much easier, and I hope I will not repeat too much of what he has so helpfully said about the circumstances in which we in this House consider the Bill.

The Bill inserts a new section into the Criminal Appeal Act 1995, which will mean that the Criminal Cases Review Commission will be able to obtain a court order requiring a private individual or a private organisation to disclose a document or other material in their possession. The court will only be able to make an order if it thinks the document or other material may assist the commission in the exercise of its functions—that of course is, of itself, a restriction which courts will bear very much in mind.

Once the court order has been made, as has been indicated, failure to disclose the documents will be punishable as contempt of court. The Government feel that it is likely that these powers will be needed rarely. I note what the noble Lord, Lord Ramsbotham, said about how rarely this power has been used in Scotland, where it has existed for some time, and how relatively rarely it is anticipated it will be needed in future in this country. Of course it has rightly been pointed out that the existence of the power itself will very much act as an encouragement and an incentive for private bodies to provide the information without a court order. Nevertheless, there will be circumstances in which organisations may feel it necessary for their position to be covered by a court order, notwithstanding that they do not oppose it. They will then not be vulnerable to any criticism or legal action. So there will be occasions on which this happens.

Examples have helpfully been given of particular bodies which may be required by the provisions to give up material. Reference was made to the Forensic Science Service, an example of the increasing privatisation of certain public bodies. A key part of the commission’s work involves re-examination and retesting of material obtained at crime scenes. Much of that material is initially tested and held by private companies.

The restriction of what the Criminal Cases Review Commission can do was rightly emphasised. It will refer matters to the Court of Appeal only where there is a real possibility that a conviction will not be upheld. Several noble Lords made the point that it is a tribute to our justice system that those occasions are relatively rare, but of course the commission performs a crucial function—often, as was pointed out, assisted by journalists carrying out investigative processes. It is something of an irony, to which I shall come in a moment, that those very journalists will be anxious to protect their sources if any order is made asking them to, as it were, disgorge material which they hold.

The Justice Select Committee investigated the work of the Criminal Cases Review Commission, and we are very fortunate to have its former chairman, in the shape of the noble Lord, Lord Beith, with us. As he rightly said, he has had a profitable few weeks in terms of responses to various recommendations of his Committee. He asked me why we were not implementing one of the recommendations: to give the CCRC powers to sanction public bodies—rather than private ones—that do not provide information. We recognise the burden that delay and non-compliance places on the CCRC; we are considering whether any further steps can be taken to improve the situation.

The noble Lord also asked about his committee’s recommendation to give the CCRC more money. As he acknowledged, there is a shortage of money generally. The CCRC is managed within the same spending review process as the rest of the Ministry of Justice. It is right to applaud the performance of the CCRC. For example, it closed 947 cases in 2010-11, a figure which rose to 1,632 in 2014-15 without an increase in resources. I congratulate the CCRC on its work. Of course, it is very difficult to generalise about how much work will be involved in a particular investigation.

However, the committee’s main recommendation has been well and truly taken forward by this Private Member’s Bill. An anxiety was expressed by several noble Lords—quite correctly—about questions of confidentiality. Of course, the individual or private company from whom material is requested will be able to put their case to the court if they believe that the documents or other material need to remain confidential and should not be disclosed. That, of itself, is a safeguard.

The question of legal professional privilege was raised. This matter was helpfully referred to by the report of the Constitution Committee of your Lordships’ House. It considered the application of the Human Rights Act, among other things, to the difficult process that judges will have to undertake in this context—as they do in many others—of weighing up the potential conflict between different rights under the Act. The noble and learned Lord, Lord Falconer, referred to the fact that the Ministry of Justice note did not specifically refer to Article 10. Of course, as a public body, the court would be obliged in any event to take into account all the articles of the convention incorporated into the Human Rights Act, so the fact that it was not expressly considered would in no way prevent someone raising the point if the matter were ventilated in a court hearing.

I entirely accept what my noble friend Lord Black said about the importance of preserving journalists’ sources. The Government and, I am sure, the noble Lord, Lord Ramsbotham, will have that well in mind, and so should a court. Of course, the restrictions on the way that documents or material are disclosed should safeguard those sources adequately. The CCRC itself has heavy obligations in its duty towards such material. So far, it has an absolutely unblemished record in this regard, so I hope that provides some consolation. It is a matter that a court should have very much in mind.

The noble and learned Lord, Lord Falconer, made the point that, in general terms, legal and professional privilege is inviolate. In fact, of course, it is subject to exceptions in any event, referred to, helpfully, in the Constitution Committee’s report on the so-called iniquity principle. It states at paragraph 8 that,

“consultations or communications between a lawyer and his client that are in furtherance of crime or fraud are not protected by”,

legal professional privilege. So it is a rule subject in any event to exceptions, but it is an important rule, and I am sure the courts will be slow to override it unless the circumstances justify doing so. Of course, both journalists and lawyers will know that the possibility of a material injustice being allowed to continue will be a heavy matter to weigh in the balance when deciding whether it is appropriate to make such an order.

The Bill will extend to England, Wales and Northern Ireland. Scotland, as has been said, has a separate Criminal Cases Review Commission, which I think it is fair to say has been a success. The Bill will put in place similar arrangements for England, Wales and Northern Ireland. We feel that it will make an important contribution to ensuring that the justice system meets public expectations, and we welcome it.

I should not conclude before referring to the point raised by my noble friend Lord Trefgarne about Sergeant Blackman, which he has helpfully raised on his behalf in your Lordships’ House on a number of occasions. Of course, the CCRC is an independent body, and it is not appropriate for the Government to interfere in what it does. However, I undertake on the Government’s behalf to ask it whether there are any developments in that regard. It will certainly read this debate and will have well in mind the anxiety on the part of Sergeant Blackman’s family that it investigate this matter as expeditiously as possible—as is consistent with fairness to both Sergeant Blackman and the bodies responsible for bringing him to court.

The Government welcome the Bill. We feel that it will very much improve a matter which needs improvement.

Criminal Legal Aid Services

Lord Faulks Excerpts

Friday 29th January 2016 Lords Chamber

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

My Lords, I wish to repeat a Statement given as an Answer to an Urgent Question in another place by my honourable friend Shailesh Vara. The Statement is as follows.

“As the Secretary of State announced yesterday, the Ministry of Justice has had to play its part in reducing the budget deficit. Economies have had to be made in every area of expenditure. In the last Parliament, spending on legal aid was reduced from £2.4 billion to £1.6 billion. Further changes to the legal aid system were due to be implemented in this Parliament, with a second reduction to litigation fees in July 2015.

At the time the fee reduction was proposed, the market was made up of around 1,600 legal aid firms. After careful negotiation, the then Justice Secretary decided to adopt a system of ‘dual contracting’ to drive greater efficiency and consolidation within the market. But over time, opposition to this model has increased. Solicitors’ firms feared that it would lead to a less competitive market; barristers that choice and quality would diminish. In addition, a process of natural consolidation was already taking place in the market.

Although we recognised these arguments, we also needed to deliver reductions in expenditure. Since July 2015, however, two significant developments have occurred. HM Treasury has given us a settlement which allows greater flexibility in the allocation of funds for legal aid, and it has become clear that there are real problems in pressing ahead. We currently face 99 legal challenges and a judicial review of the entire process. Litigation will be time-consuming and costly for all.

We have therefore decided not to go ahead with the introduction of the dual contracting. We have also decided to suspend the second fee cut for a period of 12 months. The Legal Aid Agency will extend current contracts to ensure continuing service until replacement contracts come into force. We will review progress on joint work with the profession to improve efficiency and quality, before returning to any decisions on the second fee reduction and market consolidation”.

[Lord Bach (Lab)]

My Lords, I start by thanking the Minister for repeating the Answer given in another place. I hope the Minister will acknowledge that, although the announcement made by the Lord Chancellor yesterday is of course welcome to criminal law practitioners and others, it represents something of a disaster for his department. It was not only Her Majesty’s Opposition who opposed the two-tier contracting scheme when it was first mooted, way back in 2013 by the coalition Government, but practitioners, experts and many others. We all pointed out that it could not work, that it would mean the closure of too many solicitors’ firms and that it would result, seriously, in legal deserts where those facing criminal charges would not always be able to find advice and representation. That is why we welcome the U-turn.

However, now the scheme has been abandoned, it leaves behind it enormous costs for the Government, for many solicitors’ firms—whether successful or unsuccessful in their tenders—and, of course, for those involved in the litigation. Just think of all those wasted hours worked by civil servants, solicitors’ firms and others—and all for what? What do Her Majesty’s Government intend should happen next? Sometimes in government it is right to say sorry. Does the Minister agree that this is one of those times?

[Lord Faulks]

A Government should always say sorry when they make a mistake. This is a response to a difficult situation which confronted the Government. As I indicated, contractions were taking place within the market. There has also, fortunately, been a drop in the crime rate generally, and the need for consolidation was overtly acknowledged by the Law Society. So these changes were not, as was suggested by the noble Lord, going wholly against the grain, true though it was that many objected to those changes.

It is easy to say that this was a disaster for the department, but the noble Lord is not himself unfamiliar with changes in policy. In 2009, as he may well remember, the Labour Government altered their approach to criminal legal aid. Governments of all colours will, from time to time, in reviewing these difficult situations and in trying to balance the need for access to justice and the need to control public expenditure, adjust their plans.

What we have done has been welcomed by the profession. We have considerable regard and respect for the profession, particularly those criminal legal aid solicitors who go to the police station at highly inconvenient hours and provide valuable assistance to their clients. The profession has welcomed the abandonment of dual contracting, the suspension of the second fee cut and the Government’s intention to work with the professions, as we have indicated, to try to ensure that changes that will have to be made in due course are made with maximum co-operation from both solicitors and barristers.

Although we have not yet calculated the overall cost, this will certainly have been expensive, which is of course a matter of regret. However, if it results in stabilisation of the legal profession and continued maintenance of high standards, then that is not a matter of regret. We will of course have to accept the characterisation of this as a U-turn. I am not sure that U-turns are always quite the disasters they are depicted as in the newspapers. If a responsible government department thinks again, that may be characterised as a U-turn or it may be considered an appropriate response to changed circumstances.

[Lord Beith (LD)]

My Lords, whether we regard this as a U-turn, a breath of fresh air from a new Secretary of State or simply a dose of realism in the department, it is welcome. But does the Minister recognise that a number of factors were reducing the number of solicitors doing criminal work in most towns and many rural areas, and that he will still have to address the danger that no one will be available, particularly if there is more than one defendant? While he is looking at that, will he also look at the fact that, since the scope changes, the number of claims on the exceptional cases fund has been surprisingly small, perhaps because people have never consulted a solicitor in the first place? Does that not need looking at as well?

[Lord Faulks]

The noble Lord is right that whatever the change in policy, it is important that we are satisfied that there are firms of solicitors that can represent people in whatever part of the country they are needed. When the replacement contracts come to be considered, that is clearly one of the factors that will be taken into account. The noble Lord also asked about the scope of legal aid generally and the exceptional funding provisions. They have been the subject of litigation and further clarification. One of the difficulties was that the forms that had to be filled in were perhaps not as clear as they might be. There has been considerable improvement in that regard, and the percentage of cases where exceptional funding has been obtained as a result of an application has increased considerably.

As a Back-Bencher looking at the LASPO Bill as it went through, I found the provisions on exceptional funding somewhat opaque, referring, as they did, to the Human Rights Act and Article 6. It was not always easy to know quite what the coalition Government were driving at. I think there is increased clarification of that. There has been a decision, although it is subject to appeal, but the noble Lord is right to draw our attention to exceptional funding.

[Lord Cormack (Con)]

Does my noble friend accept that it is extremely refreshing and encouraging when a Secretary of State listens, not least to the voice of this House, and makes an adjustment and a change of policy? None of us should be churlish in welcoming this very real change. Not the least of its advantages is that it has produced a situation where we have a legal profession that is in tune with the Secretary of State and a Secretary of State who is in tune with the legal profession.

[Lord Faulks]

I am grateful to my noble friend for that intervention. He is right that this House has always held the Ministry of Justice, in particular, to account with the galaxy of legal talent that is available around the Benches. I am certainly aware that any policy change is subject to great and close examination by all those here, not least this particular policy, which I have been asked about a number times in specific debates and in the course of Question and Answers. I reassure my noble friend and the House that the Secretary of State listens to what is said in this House and will continue to do so.

[Lord Clinton-Davis (Lab)]

The amount of complacency about changes in legal aid is absolutely bewildering. I speak as somebody who, in earlier life, was much involved with criminal legal aid. At the moment, there will be immense difficulties in recruiting young solicitors to do this work. I hold the view that it is desperately unsatisfactory. I hope the Minister will not again get up and say that economies have to made in legal aid. The economies that have already been made are devastating.

[Lord Faulks]

There is no complacency on the part of this Government. This Government value the contribution that solicitors make to the system as a whole, particularly those who work in criminal legal aid. The noble Lord is quite right: rates are not what they were and, as a profession, it has considerably fewer attractions than it once had. It is important that we continue to encourage able practitioners to go into areas where legal aid is the main source of funding. However, we have to bear in mind the interests of the taxpayer. We have constraints put on us by the Treasury. I particularly pay tribute to those who, despite the difficulties that are encountered, nevertheless pursue careers in this less profitable area of the profession. Our profession is often characterised as being full of ambulance chasers and fat-cat lawyers. These lawyers are very much not in that category.

Public Advocate Bill [HL]

Lord Faulks Excerpts

Friday 29th January 2016 Lords Chamber

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

My Lords, I thank the noble Lord, Lord Wills, for introducing this Bill and giving the House the opportunity to debate this important matter today. He was kind enough to pay credit to officials and Ministers in the Ministry of Justice who have engaged with him, and he has been helpful and constructive in explaining what lies behind this Bill. Let me make it clear at the outset that the Government share his desire to ensure that bereaved families and injured people are properly involved and supported throughout the investigation, inquest or inquiry process following a major incident.

There was unanimity in the contributions that your Lordships have heard, which echoes what lies behind this Bill. The noble Lord, Lord McNally, spoke of the sad history of disasters in football grounds and the sometimes inadequate inquiries that have followed those. He was right, however, to reflect on the improvements that have taken place, and he gave as a shining example the inquiry into the 7/7 disaster, conducted by Lady Justice Hallett.

The noble Lord, Lord Blunkett, who has particular experience of these issues, was absolutely right to praise Paul Goggins, who did so much in his modest way—I came across it briefly in committees—to help promote the interests of those so often neglected in such situations. The noble Lord made the important point that although cost must not be excluded from government consideration, we must think about costs further down the line.

The noble Lord, Lord Wood, and other noble Lords, made the point that these proposals augment rather than replace the existing mechanisms. Indeed, as I understand it, the noble Lord, Lord Wills, very much accepts that. The noble Lord, Lord Wood, also referred to the fact that, in the wake of these disasters, what confronts those who are sadly affected by them can be intimidating, and they are placed in a quasi-Rumsfeldian dilemma. He was right, too, to remind us of the Aberfan disaster and the dreadful noises made by the establishment in its wake.

A number of noble Lords, including the noble Lord, Lord Bach, referred to possible drafting imperfections. I know that the noble Lord, Lord Wills, is perfectly aware of the fact that there could be improvements, and the noble Lord made specific reference to them.

Notwithstanding those potential improvements, I reiterate that the Government are fully committed to making sure that victims have a voice and do not feel alienated from official processes. Indeed, I am pleased to say that much of what is proposed for the role of a public advocate already takes place, and it is fair to say that there has been much progress.

The noble Lord’s Bill is driven by the concern that following a major incident involving the loss of life in the past, such as the “Derbyshire” sinking in 1980, the Hillsborough disaster in 1989—which has been a significant focus of the debate—and the “Marchioness” tragedy in the same year, bereaved families have undoubtedly felt ignored and swept up in official processes. They have felt that once the state starts to look into the matter, their needs and wishes are not paramount, or even important, and that the process can be confusing and lacks the transparency that the noble Lord, Lord McNally, stressed as being important. In order to address this, the Bill would create the role of a public advocate to represent bereaved families and injured survivors to ensure they understand all the processes and are supported through them, and to review and make sure they have access to the documents used in the investigation.

I know that this is a matter in which the noble Lord has, as he modestly told us, a long-standing interest, as well as considerable expertise and experience. He has been closely involved with the families who were bereaved in the Hillsborough tragedy and who are now involved in the final stages of the inquest into the death of their loved ones. Indeed, it is right to say that Sir John Goldring is currently in the course of summing up to the jury in that inquest. We do not expect a decision for a few weeks yet, and quite what form that decision will take we do not know; it may be a narrative verdict or it may be something more narrow.

I had a meeting with the noble Lord, Lord Watts, who is unable to be here today, and he asked me to say that, given his personal experience, he very much supports what lies behind the Bill, without necessarily committing himself to the actual words.

The Government acknowledge that there were significant issues in the way in which the Hillsborough families were treated in the various processes which followed and we agree that it is vital that lessons are learned and that their experiences should not be that of others in the future. It is because we agree that the needs of the family are so important that we have already taken a number of steps forward.

Reference was made to the Coroners and Justice Act 2009 and the suite of rules and regulations underpinning it. They reformed the way in which coroners’ investigations and inquests are now conducted following a major disaster. These reforms have been in place since July 2013 and have the central aim of putting bereaved people at the heart of the process. The aim is that they receive the support they need and that the process is transparent and understandable from the time of a death being reported to the coroner until the end of the inquest hearing.

Under the reforms we have taken forward, bereaved people have the right to request most documents involved in a coroner investigation and inquest and they can expect the coroner’s office to update them at regular intervals. They can also expect the coroner’s office to explain each stage of the process so that they understand what is happening and why. They can expect compassion and respect for their needs to be central to the investigation and inquest.

They will also have the resource of the Guide to Coroner Services, which my department published in February 2014. This explains clearly and simply what they can expect from the coroner and his or her staff and what to do if that does not happen. Under the 2009 Act, a key role of the coroner and his or her office in an investigation is to make sure that “interested persons”, including bereaved people, understand the process of investigation and are informed of their rights and responsibilities. They are entitled to receive documents and other relevant information, such as hearing dates, so that they can fully participate in the process. Many coroners now also have a support service which provides emotional and other practical support to those attending inquests on the day.

Under the Inquiries Act 2005, the inquiry chair is under a statutory obligation to have regard to fairness. Core participants, which will clearly include all those with whom we are concerned, are entitled to disclosure. The inquiry chair will act as data controller, devising and implementing mechanisms for obtaining, handling and securely storing documents provided to and generated by the inquiry. There is guidance for those running inquiries, including inquiry chairs, teams and sponsoring departments, which sets this out.

Therefore, much of what is in the Bill setting out what a public advocate would do is already happening in the existing processes. We are today in a very different climate from that at the time of the Hillsborough tragedy and in the intervening years. The needs of bereaved people are rightly much more central. I hope noble Lords agree that the current landscape brought about by these reforms and the hard work and contributions of so many makes it less likely that what happened to the Hillsborough families will occur again.

We are not, of course, complacent about this but I believe that, at the moment, there is no need for the public advocate role that the Bill envisages. However, the Government agree that the needs of bereaved families, in particular, must be paramount and that the principles that lie behind the Bill are right. Bereaved families should feel that their voice is heard and confident that processes are fair and transparent. They should feel that they fully understand what is happening and able to participate effectively.

We are, therefore, willing to consider whether the existing processes can be improved and whether any of the principles in the Bill can be incorporated into the existing system. We could, for example, place more firmly in the guidance which is already available to inquiry chairs and teams how important the needs of the families are. We can look at whether the positive things coming from the Hillsborough inquest, not yet concluded, such as the family forums set up to keep the families informed of the investigative processes and to give them a safe space in which to discuss issues, can be replicated in other major inquests and inquiries.

As to specific next steps, I commit to meeting the noble Lord, Lord Wills—not immediately but as things progress—so that our feet can be held to the fire to see whether steps can be taken to reflect what lies behind this and further to improve the significant steps forward we have made.

On behalf of the Government I thank the noble Lord, Lord Wills, for raising the profile of this important issue and for his valuable input, which is welcomed. I hope he will accept my assurance that the Government will continue to ensure that bereaved families and injured persons are central to the inquest and inquiry processes and that their voices will not be ignored.

[Lord Woolf (CB)]

My Lords, does the Minister feel that the role of the advocate to the inquiry could be closely used to adopt many of the points required by those who support this Bill?

--- Later in debate ---

[Lord Faulks]

The concerns which would be represented by a public advocate—were there hypothetically to be one—should be properly reflected in the way that an inquest or inquiry is carried out. We are not at the moment persuaded that a public advocate as set out in the Bill is necessary. However, we do not rule out possible improvements to ensure that those factors which would be reflected in what a public advocate did find better representation in the existing arrangements.

Age of Criminal Responsibility Bill [HL]

Lord Faulks Excerpts

Friday 29th January 2016 Lords Chamber

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

My Lords, I join other noble Lords in congratulating the noble Lord, Lord Dholakia, on introducing this Bill and bringing this important debate to the House. I am grateful to all noble Lords for their contributions today. The debate reflects a long-standing commitment on the part of the noble Lord, and indeed there are many noble Lords who have considerable interest and experience in these matters.

In order to avoid any unnecessary suspense, I should say that the Government have no plans to raise the age of criminal responsibility from 10 to 12. I know this will disappoint the noble Lord, Lord Dholakia—but I hope he will at least be consoled by the fact that he will not have to embrace me, as was suggested by my noble friend Lord Cormack.

Although at the moment we are not able to accept that there should be a change, we none the less share the concern of the noble Lord, as indeed do all noble Lords who spoke, about the proper way to deal with young offenders. The Government believe that children aged 10 and above are, for the most part, able to differentiate between bad behaviour and serious wrongdoing and should therefore be held accountable for their actions. Where a young person commits an offence, it is important they understand that it is a serious matter. The public must also have confidence in the youth justice system and know that offending will be dealt with effectively.

The Jamie Bulger case casts a shadow over all our considerations in this area. That case was, I am glad to say, very unusual. The noble and learned Lord, Lord Brown, referred to the principle of doli incapax. There was a rebuttable presumption in 1993, at the time of the hearing, which was then removed in 1998. The court in that case specifically considered doli incapax and decided that both boys clearly knew that what they had done was wrong, and so the presumption was rebutted.

A number of points were made during the debate about whether or not the full panoply of a trial at the Old Bailey was really appropriate for boys of this age. I entirely understand that point. We have to bear in mind that this was an issue of national concern and, of course, an absolute tragedy for those connected to Jamie Bulger. It is difficult for a country somehow to balance the fact that we are dealing with very young people with, at the same time, acknowledging the seriousness of something of that sort.

Unusually, I agree with the noble Lord, Lord Bach—in two years, it is very rare that we have agreed on anything, at least across the Dispatch Box—that the Government do have a duty to respond to what the public want. With very great respect to the noble Baroness, Lady McIntosh—who is now on the Woolsack: a somewhat different position from when she made the point—they are not simply responding to the Daily Mail, although the Daily Mail clearly has a capacity to influence policy in a number of respects.

The noble Lord, Lord Parekh, made the point that European countries do not share our view about the age of responsibility. Of course, other countries and different states in the United States vary. It is a matter for each country to make its own judgment. It is not simply a question of our following what others say.

It is important to note that serious crimes committed by children are mercifully rare and we do not want to see 10 and 11 year-olds prosecuted for minor offences. Indeed, most such offending will be diverted away from the formal criminal justice system. We have recently invested a significant amount, £3 million over two years, in restorative justice conference facilitator training for youth offending team staff—I know my noble friend Lord Cormack is an enthusiast for restorative justice—and referral order lay panel members to encourage support for and promote greater use of restorative justice conferencing. However, it is important that, where appropriate, serious offences can be prosecuted and the public protected.

The noble Earl, Lord Listowel, who has great knowledge of and concern for the welfare of young people, particularly those who make up much of the prison population—possibly as a result of the care system or the origin of their lives, which cause them to be in the care system—made a point about the expense this caused and asked me to give the costs of the full criminal process compared to more informal disposals. That is a factor but the real costs lie in where someone is sent for punishment. The average price per year in a secure children’s home is £204,000; in a secure training centre it is £163,000; and in an under-18 young offender institution it is £75,000. These are very large sums of money. Fortunately, we do not send nearly as many young people to any of those disposals as we used to. It is very much a punishment of last resort.

Returning to the question of 10 and 11 year-olds, between 2004 and 2014, the number of 10 and 11 year-olds who received a custodial sentence was 12. Maintaining the minimum age of criminal responsibility at 10 does not, however, lead to the prosecution of a large number of 10 and 11 year-olds. In 2014, only 136 10 and 11 year-olds were proceeded against at court compared to 6,860 12 to 14 year-olds, and 65 of those 10 and 11 year-olds were given community sentences. The others were found not guilty, fined or given a conditional or unconditional discharge. Many crimes committed by those aged 10 or over will not result in a prosecution at all.

We are keen to ensure that, whenever possible, children are not prosecuted as research shows that this can be counterproductive, as many noble Lords have said. The principal aim of the youth justice system is to prevent young people offending. We need to keep our focus on that.

Legislation specifically requires courts to have regard to the welfare of under 18s. Section 44 of the Children and Young Persons Act 1933 provides that every court, in dealing with a child or young person who is brought before it, shall have regard to their welfare. This is reinforced by detailed guidance contained in the sentencing guideline Overarching Principles—Sentencing Youths.

Having the age of criminal responsibility set at 10 years allows flexibility to deal with young offenders. If particular needs are identified in a youth offending team’s assessment of a child or young person, the multiagency youth offending team, which includes representatives from health, housing, children’s services and education, can refer the child on to other statutory services, such as children’s services departments and child and adolescent mental health services, for further investigation and support. That support can include addressing attendance and attitude to school, referral to speech and language therapy and, where appropriate, referring parents to parenting courses. A youth caution can also be given for any offence where the young offender admits an offence and there is sufficient evidence for a realistic prospect of conviction, but it is not in the public interest to prosecute.

Youth cautions usefully aim at a proportionate and effective resolution to offending and support the principal statutory aim of the youth justice system of preventing offending by children and young people. Youth conditional cautions require young people to take responsibility for their actions, including by agreeing to conditions that require them to put things right or seek help for their behaviour. The conditions that can be attached must include one or more of the objectives of rehabilitation, reparation and punishment. The rehabilitative conditions may include attending one or more of a range of interventions available to the youth offending team for addressing offending behaviour. Reparation can include apologising, repairing or otherwise making good any damage caused, provided that this is acceptable to the victim. Punitive conditions may include attendance at a specified place to undertake an agreed activity. I should however emphasise that in any case where the police or the CPS are considering offering a youth conditional caution or a second or subsequent youth caution, the case must be referred to the local YOT to provide a check on the appropriateness of the disposal and the interventions that should go alongside. This will all be well known to the noble Lord, Lord McNally, as chair of the Youth Justice Board.

When a young person aged 10 to 17 pleads guilty to an imprisonable offence, is convicted for the first time and does not warrant an absolute discharge, conditional discharge, hospital order or a custodial sentence, the court must give a referral order. A referral order is based on restorative justice principles and may be between three and 12 months in length. The offender is referred to a youth offender panel made up of trained community volunteers and a member of the youth offending team.

There is a great deal more I could tell the House about, but it is important to stress that in these and other interventions, custody of any sort is always very much the last resort. As the noble and learned Lord, Lord Brown, emphasised, very often the destination, as it were, is one that is reached in the interests of the child whether it comes by welfare provision or via the criminal justice system. Custody is available, admittedly at great expense, for 10 and 11 year-olds only if they commit a grave or serious crime, normally one where an adult would be liable to a maximum penalty of 14 years’ imprisonment or more. A child would only be placed in a secure children’s home with a strong focus on addressing their and their family’s needs as well as the offending behaviour.

Reference was made to the report being produced by Charlie Taylor, who I know is doing an extremely thorough job, as was confirmed by the noble Lord, Lord McNally. He is a former head teacher and an expert in child behaviour. His interim report is due to be published shortly and the final report will follow in the summer. We believe that, partly as a result of the legislation which has been introduced and other steps, this has all contributed to a significant fall in the number of under-18s being dealt with in the criminal justice system. The noble Baroness, Lady Massey, asked about the numbers. The legislative changes are not the only factor, and one clear contributory factor was doing away with the police target introduced under the last Labour Government for offences brought to justice, but which was very sensibly dropped by that Government in 2008. Since youth offending peaked in 2007, proven offences have fallen by 78% and there are 64% fewer young people in custody. At the end of November only 991 under-18s were being held in the youth secure estate. However, we are not complacent. We recognise that there is scope to make the youth justice system better and to improve the experience of young people who the courts consider need to be detained. We will be better informed after Charlie Taylor reports.

In conclusion, the Government believe strongly that the current age of criminal responsibility is appropriate to hold young people to account for their actions if they commit an offence and reflects what is required of our system. We are of course most anxious to ensure public confidence in the youth justice system, and that communities know that young people’s offending will be addressed to counter the negative effects on victims and the community. We must, above all, however, ensure that young people are rehabilitated and educated if we want them to cease their criminal activities.

By bringing back his Bill, the noble Lord, Lord Dholakia, focuses our attention on what we do about young offenders. He reminds us of the causes that often precede their arrival in the criminal court system. He and other noble Lords have emphasised that we must look at the problems that young offenders pose for society, as the right reverend Prelate did, in terms of our responsibility as a society, and we must react to that appropriately. In doing so, he does us and the House a great service. While we do not support the Bill, we very much support many of the expressions of concern for youths and the justice system that we have heard today. This has been a valuable debate and I congratulate the noble Lord and others on bringing these matters to our attention.

Legal Services Act 2007 (Claims Management Complaints) (Fees) (Amendment) Regulations 2016

Lord Faulks Excerpts

Wednesday 27th January 2016 Lords Chamber

Moved by

[Lord Faulks]

That the draft regulations laid before the House on 17 November 2015 be approved.

Relevant document: 10th Report from the Joint Committee on Statutory Instruments. Considered in Grand Committee on 18 January.

Motion agreed.

Marriage: Humanist Ceremonies

Lord Faulks Excerpts

Thursday 21st January 2016 Lords Chamber

[Baroness Thornton]

To ask Her Majesty’s Government what plans they have to establish humanist marriage ceremonies in England and Wales.

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

My Lords, the Government gave an Answer to the noble Baroness on 2 June last year saying that given the broader implications for marriage law, they would consider the next steps after the Law Commission had reported in December on its preliminary scoping study of the law concerning how and where people can marry in England and Wales. The Government are carefully considering the report and will respond in due course.

[Baroness Thornton (Lab)]

I thank the Minister for his Answer. He will understand why I keep returning to this because Scotland is a long way for one to go for one’s children to have a humanist marriage. Two gay people can now marry in a church but they cannot have a humanist wedding in England and Wales. It is two and a half years since this House agreed that it thought that should happen. Can the Minister say whether it would be possible, and indeed preferable, for a modest extension of the law to accommodate humanist marriage rather than overhauling marriage law, as recommended by the Law Commission report? If Scotland and other countries can do this in a simple way, should England and Wales not be able to do so as well?

[Lord Faulks]

What Parliament decided, in Section 14 of the Marriage (Same Sex Couples) Act 2013, was of course that the Secretary of State should arrange a review, which the Secretary of State did—that is the Law Commission review—and that he has a power rather than a duty to make the order which the noble Baroness refers to. It is of course quite right that Scotland has operated a different arrangement, whereby you may go to a registry office and have a schedule permitting you to get married anywhere. Marriages have taken place on the top of a mountain and in the middle of a loch, identified only by a GPS reference. However, these are serious matters. The Government think it necessary to consider marriage as a whole and it is interesting that the Law Commission’s thorough report does in fact not recommend simply activating that order-making power, as the noble Baroness will have seen.

[Baroness Barker (LD)]

My Lords, following that answer, can the Minister confirm that the system in Scotland is that the celebrants are registered rather than the locations where the ceremonies take place? That is the material difference. However, opinion polls consistently show public support for humanist marriages, so can he tell us why the Government keep trying to kick this into the long grass rather than using the powers that they have to bring it about?

[Lord Faulks]

The noble Baroness is quite right of course that it is a celebrant-based system. A schedule is issued by the register office stating where the marriage can take place, and the celebrant then goes back to the register office and the matter is registered there. The Government have considered the matter and will continue to do so, and will bear in mind the very cogent representations that have been made on behalf of humanists. At paragraph 3.20 of its report, the Law Commission said that,

“activating the statutory order-making power to permit marriages according to the rites of non-religious belief organisations is simply not, in our view, a viable option”.

The Government have to take that into account and consider the integrity of marriage as well as, of course, the wishes of individuals.

[Baroness Warsi (Con)]

My Lords, is my noble friend aware that Islamic religious marriages are recognised in the UK in law only if they are conducted overseas and not in the United Kingdom? This anomaly is the main reason why women turn to sharia councils when their marriages fail, an issue which my right honourable friend the Prime Minister was discussing earlier this week. If he is aware of that, and if the recognition of these marriages would stop references to sharia councils and indeed the practice of polygamy, why will the Government not adopt this provision? They have been aware that this is a solution as far back as 2011.

[Lord Faulks]

These are complicated issues. As my noble friend quite rightly says, the Home Secretary has initiated a general inquiry into the use of sharia councils. One area of particular concern is the circumstances in which marriages take place and the fact that there are some people in the Muslim community for whom marriage can be used somewhat oppressively. It is certainly important that all the information is available before we come to any conclusions.

[Baroness Whitaker (Lab)]

My Lords—

--- Later in debate ---

[Baroness Butler-Sloss]

I find this very difficult to understand. Why, if it was right to have a review of marriage generally, did we have the same-sex marriage Act but not allow the same for humanists? There is an unacceptable discrepancy there, and I speak as someone who is not a humanist.

[Lord Faulks]

It is not of course, as the noble Baroness would confirm, that we do not allow humanist marriage—a civil marriage can take place followed by a humanist ceremony. The gravamen of the complaint is that they cannot take place simultaneously.

[Baroness Whitaker]

My Lords, speaking as a humanist, may I ask the Government what the majority of respondents to their consultation on this subject of humanist marriage thought about it?

[Lord Faulks]

The vast majority—well over 90%—were in favour of humanist marriage. Humanists represented by far the greater majority of those who responded to the consultation. Pagans and naturists also responded—the latter, for some reason, were particularly keen on outdoor ceremonies, which might be challenging at this time of year.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, it seems to me that the Minister is taking the Law Commission view ahead of Parliament. It was this Parliament that decided that the Secretary of State should have this power. Is it not now time to move on that?

[Lord Faulks]

I respectfully reject what the noble Baroness says. She is quite right that it is a matter for Parliament, and it is also a matter for the Government to consider. The Law Commission has produced a very valuable and thorough report—as I am sure she will agree, having read it—which provides material for the Government to consider. The report was only produced just before Christmas. After considering that report, the Government will then make a decision.

Prison Reform

Lord Faulks Excerpts

Thursday 21st January 2016 Lords Chamber

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

My Lords, I thank my noble friend Lord Fowler for introducing this important debate and all noble Lords for contributing to it. There is a great deal of expertise in your Lordships’ House on this subject. As the noble Lord, Lord McNally, pointed out, a number of noble Lords contribute not just to debates but to reports, and by chairing committees. There is no lack of interest and, it is remarkable to report, a considerable consensus apparent in the House across all parties and among those of no party. I can report that the Secretary of State, who has received several plaudits for his endeavours so far, reads carefully the debates in your Lordships’ House, so everything that has been said will be noted by him. I will not respond in detail to all the many suggestions that have been made, but suffice it to say that the five points emphasised by my noble friend Lord Fowler received widespread support, and I find no difficulty in supporting any of them myself.

There are some positives about prisons as well as the litany of negatives that have been pointed out by so many of your Lordships. It is important to bear in mind the invaluable work undertaken in prisons. We have many dedicated prison officers and governors working in difficult and often dangerous conditions. They strive to help offenders lead better and safer lives, and they take their duties to prisoners and to the public very seriously. I am shortly to visit their training establishment to gain a better understanding of the challenges they face and the training they receive. It is about not just prison officers but a whole host of professions, from psychologists to teachers and career advisers. There are also many from the voluntary sector. We should not neglect the charitable and voluntary sector for all it does for prisoners, a matter referred to by my noble friend Lord Farmer. But there are undoubtedly many challenges that face us.

It is helpful that the current political situation does not lead one to believe that there is any sort of arms race between the parties as to who can be tougher on crime. I think we have left those days behind. What we can all agree on is that reoffending has simply been too high for too long. Although the overall reoffending rate has come down slightly over the past decade, 45% of all adult prisoners reoffend within one year of release, with the figure rising to 59% for those serving sentences of under 12 months. The figures are significantly higher than for those who serve non-custodial sentences.

Perhaps I may pause briefly to say that although the current Secretary of State has received some qualified approval, his predecessor did not on the whole receive such approval in your Lordships’ House. However, I pay tribute to him for all he did on the Transforming Rehabilitation strategy. A number of noble Lords made the point that those who serve sentences of less than 12 months are particularly likely to reoffend. They used to be allowed to leave prison with £46 in their pocket and it was no surprise that they immediately reverted to their old habits. Under the stewardship of the Secretary of State, the previous coalition Government brought in a system whereby all those offenders received support in the community from the probation service and before they left prison to enable them to rebuild their lives as best they could. That was a brave initiative and it is one that we should pay tribute to the previous Secretary of State for introducing.

To help prisoners leave custody, we need our prison officers to be able to work in an environment which is suited to supporting offenders. However, our current prison estate is ageing, inefficient and ineffective at doing that. There are numerous “dark corners” which facilitate bullying, drug-taking and violence, and, within prisons, violence towards prisoners and prison staff is increasing. In the last year, serious assaults have risen by a third and, tragically, 95 prisoners have taken their own lives while in custody. While referring to deaths in custody, I pay tribute to the impressive and thorough report produced by the noble Lord, Lord Harris of Haringey, and we have accepted a considerable number of the recommendations made in it. He mentioned particularly the identification of a custody and rehabilitation officer who would be responsible for each offender. I understand entirely what drives the suggestion, but, notwithstanding the wisdom that lies behind it, the Ministry of Justice believes that it could undermine the concept that reducing the risk of suicide is a key part of the role of all prison staff. Our philosophy is that every contact matters and every individual matters. Of course, the noble Lord will know, as will the House, that the death of a prisoner is not only a tragedy for that prisoner and their family, but also very destructive to the morale of those who work in prisons. All prison officers should be concerned for the welfare of each individual.

[Lord Harris of Haringey]

I am grateful to the noble Lord for responding. The point of the custody and rehabilitation officer is not to get away from the concept that everyone should be responsible for the security and safety of an individual. It is to create someone who would take personal responsibility for ensuring that the journey of a prisoner through the prison system, particularly in relation to rehabilitation, so that it is owned by an individual who makes sure that that journey happens and that the right solutions are found for each person. That is what I think is being lost and is what will undermine the Secretary of State’s desire to bring about a rehabilitation revolution.

[Lord Faulks]

I do not disagree with the objectives outlined in the suggestion; rather it is simply about how they can best be achieved. But the identification of the desire for continuity is of course important.

I was saying that one of the problems we must confront is the use of psychoactive substances, known as legal highs. Their use has been plainly linked with specific acts of violence and erratic behaviour, as referred to by the noble Lord, Lord Marks. This and the previous Government have already introduced measures to tackle the use of these substances, including the use of specialist dogs to search cells, and we are currently exploring the use of body scanners to reduce the threat posed by drugs being smuggled into prisons. This is a problem being confronted not only in prisons in this country but elsewhere throughout the world. It is proving particularly intractable, but it is vital that we do so. Despite the tireless efforts of all those working in our prisons, these issues, which were identified by many noble Lords, cannot be ignored. The Secretary of State has made it clear that our prison system is in need of reform. It fails to rehabilitate and it fails to ensure that criminals are prevented from offending again. Without reform, this cycle will continue.

What changes are we making? A key aspect of these reforms is the proposed changes to the prison estate itself. We will close down ageing and ineffective prisons, replacing them with buildings fit for today’s estate. We will invest in a high-quality modern prison estate, with appropriate facilities for training and rehabilitation. This is receiving enthusiasm across government. Some £1.3 billion will be invested to reform and modernise the prison estate to make it more efficient, safer and focused on supporting prisoner rehabilitation. The Chancellor announced that the Government will build nine new modern prisons, five of which will open during this Parliament, with better education facilities—as referred to earlier this week in a debate answered by my noble friend Lady Evans, which I shall not go into now—and other rehabilitative services, while selling ageing and inefficient prisons to free up land for new homes.

This includes the closing of Holloway prison. The female prisoners held there will be transferred to better prison environments, including HMP Downview, which we will reopen as a women’s prison. Downview provides better facilities for family visits as well as being a better rehabilitative environment for women. I do not in any way disparage what was achieved in Holloway, which I visited, because it was a remarkable prison. However, we feel that we can do better.

A number of noble Lords, among them the noble Lord, Lord Judd, and the noble Baroness, Lady Healy of Primrose Hill, mentioned the problem of women in prison. In 10 years of sitting as a recorder, I always found reasons not to send women to prison and I can hardly remember ever doing so. I am glad to say that the female prison population is now consistently under 4,000 for the first time in a decade. We are modernising the prison estate to provide the best rehabilitative regimes and hold women in environments better suited to them. We want to ensure that they serve their sentences in appropriate surroundings and to maintain their strong family ties. My noble friend Lord Farmer made the point that family ties are vital to assisting rehabilitation not only for women but for all the prison population.

Of course, it is not just the structure of the estate that we need to reform, but how we manage offenders. I entirely agree with my noble friend Lord Fowler that prison is a place where people are sent as punishment, not for further punishment. If we ensure that prisons are calm, orderly and purposeful places—I entirely accept that there is a need for more purposeful activity—the skills and habits that they acquire there will prepare them for outside life. We can all benefit from that.

The Secretary of State clearly set out his commitment to “liberating offenders through learning”. Prisoners must use their time in prison advantageously. We must offer them a chance to obtain qualifications and skills—I note what the noble Baroness, Lady Benjamin, said about that. I welcome the opportunity to visit prisons where that is going on: it is a vital part of the Government’s reform agenda.

We know that one in five prisons has an “inadequate” standard of education provision and two in five require improvement, according to Ofsted. That is why we have commissioned Dame Sally Coates to chair a review into the quality of education in prisons, which will report in the spring. Talking of reporting, of course I accept what the noble Lord, Lord Beecham, said: Mr Hardwick is there to provide an independent report to the Government on the state of prisons. That is important for him and his successor, and we should be able to take criticism robustly and respond appropriately. Their independence is crucial.

While the review by Sally Coates is going on, work is under way to improve the quality of learning and skills provision in prison. These measures include improving support for prisoners with learning disabilities—unfortunately, many have them— developing more creative teaching methods and collecting better management information. Giving poorly educated adults a basic level of literacy and numeracy is vital, following tried and tested methods, and the current failure to educate prisoners well is hard to defend. I do not think the House will need much convincing about the Secretary of State’s attachment to the importance of education.

Meaningful employment is crucial. It is a vital part of the Government’s approach to support those who have committed a crime to get out of the cycle of offending. We are keen to increase the number of employers who engage with prisoners and offenders to offer them employment opportunities. We hold an Employers’ Forum for Reducing Re-offending, chaired by the CEO of Timpson, James Timpson, which brings together employers who support the employment of offenders to share their experiences and promote the benefits of employing offenders to other businesses. We have built a relationship with several employers, including Halfords, which provides work for prisoners in its academy, which is run in a prison and employs the prisoners on release if they positively engage on their 16-week course. I have had several conversations with the Prisons Minister, Andrew Selous, who is particularly keen on and pleased with the progress that has been made in this regard.

We are also anxious that there should be greater autonomy at a local level for prisoners—a point made by my noble friend Lord Fowler and the noble Lord, Lord Beith, with his considerable experience of justice issues. That is a form of localism in the Prison Service. The noble Lord made the interesting point that Texas has brought about a strange consensus between the political parties on the way forward in that regard.

I could respond on the issue of IPP prisoners at considerable length; unfortunately, I do not have time to do that. Suffice it to say that we are progressing well in the number of courses available to IPP prisoners. We are also in the process of reducing the backlog for hearings before the Parole Board. As I told a number of noble Lords at a recent meeting, there remains the question of the Secretary of State’s powers to change the test for release. That is a matter which he continues to consider carefully. I will make sure that I faithfully transmit all messages from this House and noble Lords about the need to do something about that.

The points of the noble Lord, Lord Bradley, were well made. We are aware of the importance of reviewing the working of ROTL and liaison and diversion services. The Secretary of State has well in mind a possible wider review of sentencing. Similarly, several noble Lords, including my noble friend Lord Cormack, emphasised the importance of restorative justice.

Finally, my noble friend Lord Trefgarne rightly drew our attention to the plight of older prisoners, who are becoming a particular, somewhat unusual, feature of the prison population. That is partly to do with so many offenders having been committed for ancient offences of sexual abuse and the like. All prisoners, regardless of age, need to be treated in a humane manner that reflects their needs. That is a matter we should attend to particularly carefully.

I am grateful to all those who have taken part in this excellent debate and to my noble friend Lord Fowler for initiating it. The Secretary of the State and the Ministry of Justice will have learnt a great deal from it.

Legal Services Act 2007 (Claims Management Complaints) (Fees) (Amendment) Regulations 2016

Lord Faulks Excerpts

Monday 18th January 2016 Grand Committee

Moved by

[Lord Faulks]

That the Grand Committee do consider the Legal Services Act 2007 (Claims Management Complaints) (Fees) (Amendment) Regulations 2016.

Relevant document: 10th Report from the Joint Committee on Statutory Instruments

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

The Legal Services Act 2007 (Claims Management Complaints) (Fees) Regulations 2014 enable the Lord Chancellor to charge fees to regulated claims management companies to recoup the costs of the Legal Ombudsman’s work in handling complaints about these companies. Since January last year, the Legal Ombudsman has been able to consider consumer complaints against claims management companies. It is funded for this work by grant-in-aid from the Lord Chancellor, and the 2014 fees regulations enable the Lord Chancellor to recoup the costs from the companies themselves. It is right that the costs of handling such complaints fall on the claims management sector and not on the taxpayer.

The draft regulations before us amend the level of fees set out in the existing 2014 fees regulations for the financial year beginning 1 April 2016 and for subsequent years. This will ensure that the Lord Chancellor can recover the full costs of the Legal Ombudsman in dealing with complaints about the claims management industry in the 2016-17 financial year.

The Legal Ombudsman has one year’s experience of operation of the complaints scheme. During this time, the Legal Ombudsman has dealt with fewer cases requiring an ombudsman decision than expected, although the number of complaints is increasing. The number of initial consumer contacts and inquiries to the scheme has been substantially more than envisaged.

In the light of its experience so far, the Legal Ombudsman has revised downwards its estimate for the number of cases that will require ombudsman resolution during the next financial year and therefore the expected costs. However, in addition to the Legal Ombudsman’s expected costs for 2016-17 we also need to recover a shortfall in the amount invoiced for 2014-15 and 2015-16. This was the result of a greater number of market exits than was estimated in the fee model. This means that the total cost to be recovered from the market for 2016-17—around £2.3 million—remains broadly similar to that for 2015-16. Due to the contraction in the market, however, fees have had to be increased. Effectively, it is a smaller cake.

Noble Lords will be aware that a fundamental review of the regulation of claims management companies is currently taking place. The review is considering what powers and resources are required for a strengthened regulatory regime and what other reforms may be necessary, and is due to be completed in early 2016. As such, I cannot say any more about it at the present time.

The claims management sector has undoubtedly acquired a poor reputation as a result of a small number of companies engaging in poor business practices. The Legal Ombudsman provides redress for consumers of regulated claims management companies, including the potential for awards of compensation, and will continue to assist the claims management regulator in driving out poor standards and practices in the market.

I know that noble Lords welcome the fact that the Legal Ombudsman is now able to deal with complaints about claims management companies. It is therefore right that the Legal Ombudsman’s costs relating to regulated claims management complaints continue to be met by the claims management sector, in the same way that the costs relating to complaints about the legal services sector are met by that sector. I commend the draft regulations to the Committee.

[Lord Beecham (Lab)]

My Lords, the Government are right to take action in this matter, and I certainly endorse the new arrangements that have been laid out, but it has a rather curious history. Looking at paragraph 4.2 of the Explanatory Note, I can see that it was some seven years after the passage of the 2007 Act before steps were taken to deal with this issue. The paragraph contains this rather curious sentence:

“This provision treats the designated Claims Management Regulator as an approved regulator to be levied in the same way as other approved regulators for the costs of the Legal Ombudsman”.

It goes on to say:

“However, there is currently no designated Claims Management Regulator and the function is fulfilled by the Secretary of State”.

One might have thought that he had more important things to do. Obviously, Mr Gove and his predecessor will not have been involved in this personally, but it is a curious situation that for some years there apparently was no functioning regulator in post.

The position appears to be, as the Minister has indicated, that a £500,000 shortfall has occurred in a very short period. I do not know whether he is able to indicate how many cases there were. He said that there were not many, but £500,000 is a reasonably large amount of money. It will be interesting to know how many cases there were and how many of those were from small companies, which appear to be leaving the market. But the very fact that after all these years there are clear deficiencies in how some of those providing this service are operating raises questions about the degree to which their activities are regulated in advance of the unfortunate outcome, which sometimes leads them to be subject to charges for maladministration or their conduct. Does the review to which the Minister referred encompass looking at the qualitative regulation of the industry? Should there not be a floor above which the resources of these companies should be fixed? If not, we will continue to have a situation in which, quite apart from the financial implications for the Government, people who have consulted these companies presumably are being short-changed. One wonders what has happened to valid claims that have gone astray as a result of maladministration. That side of it does not seem to be touched on at all in relation to this order, but it may be encompassed within the review. I certainly hope that that is the case, but if it is not, perhaps the Minister could undertake to look into the nature and quality of the supervision that ought to be exercised and, if necessary, what improvements should be made to what has gone on recently.

[Lord Beith (LD)]

My Lords, I very much agree with the noble Lord, Lord Beecham, about the rather curious nature of the regulatory arrangements for claims management companies. The Lord Chancellor left himself holding the baby when the original legislation was taken through. I never thought that this arrangement would last as long as it has. It is quite right that it should be subject to review. It is obviously right that the costs of dealing with what the noble Lord called the maladministration in the industry is visited upon the industry and not the taxpayer. Therefore, I support the order and the principle behind it.

The history of claims management companies has been one of things that go beyond individual complaints. There have been systemic changes to the way the legal system operates and attempts to turn it into an ambulance-chasing activity. We all have some worries about whether, in another area, the necessary referral fee bands have actually brought some of the claims management activities in-house, into some solicitors’ practices, where once they were precluded. This is a very difficult area and the regulatory problems that it generates are not just individual cases being badly dealt with but systemic weaknesses. I hope that when we dispatch this order successfully as an appropriate means of dealing with the costs arising from individual claims, we will not neglect some of the wider issues that this industry has generated.

[Lord Faulks]

My Lords, I am grateful for that short debate and for the contributions of the noble Lord, Lord Beecham, and the noble Lord, Lord Beith, who, I know, when he was chair of the Justice Select Committee had considerable concern, possibly in relation to the Compensation Act going back to 2006. At that time the question of claims regulations was certainly raised, with the emergence of claims management companies and the possibility that they were and would be engaging in unacceptable practices. That is a matter of concern generally to the Government.

The claims management regulation unit in Burton-on-Trent has been doing a good job but the Government are by no means complacent about this activity. The review being conducted by Carol Brady is wide-ranging and I do not want in any way to pre-empt its conclusions, but the Government are not going to lose sight of the potential dangers that this claims management activity can present. I take the noble Lord’s point about referral fees and the possibility that they might have the unintended consequence of driving claims away from lawyers towards claims management companies.

On the plus side, I think that the increased powers to fine companies have been a positive step, together with the fact that a number of the less reputable companies have left the market. There is something like half the number of claims management companies in existence that there were. This is at least some indication that the better ones are still active rather than the less reputable ones.

The wider point that both noble Lords make about claims management is valid. I hope that the review will assist; the Government are very much aware of the field and whether it is desirable in the long term that these companies should exist, as well as the need for regulation.

--- Later in debate ---

[Lord Beecham]

I entirely endorse what the Minister has said, but the danger is that the process of finding companies works only if the companies are in existence and have resources. Therefore, it seems to me that the regulation needs to be at an earlier stage to ensure that they do not carry on business unless they can demonstrate that they have the financial capacity to meet their liabilities. I assume—but it would be good to have the confirmation, if not today than perhaps subsequently—that that element is being considered as part of the review to which the Minister referred.

[Lord Faulks]

I am grateful for that, and I understand the noble Lord’s concern about having prior approval rather than waiting for things to go wrong; I think that is effectively what he is saying. I do not want to pre-empt what is in the wide-ranging report. Of course, there are a number of ways of ensuring that, including the possibility of professional indemnity insurance, or something of that sort. But I accept his point that it is important that there is protection before, rather than after, the event. I do not undertake that the review will cover that point, but it is none the less a valid concern.

Motion agreed.