Legal Aid, Sentencing and Punishment of Offenders Bill

Lord Phillips of Sudbury Excerpts

Wednesday 18th January 2012 Lords Chamber

[Lord Howarth of Newport]

My Lords, the speech of the noble Lord, Lord Best, was well worth waiting for. This is a very important and valuable group of amendments and I endorse the arguments so powerfully stated by the noble Lords who have spoken. Under the Government’s proposals in the Bill, legal aid will no longer be available for damages claims in relation to tenancy disputes; for example, disrepair. CLG tells us that more than 40 per cent of private rented dwellings do not meet the decent homes standard. Tenants will still be able to get legal aid to seek injunctions to get the work done, although only where there is serious risk of harm to the health or safety of the household. So there is a very high threshold for one to get legal aid for an injunction of that kind.

Under the current arrangements, as the noble Lord, Lord Best, explained, bad landlords know that the longer that they delay in carrying out the repairs, the greater the damages that they will have to pay. Therefore, the current arrangement, whereby legal aid is available for damages suits for disrepair, constitutes an incentive on landlords to carry out the repairs relatively promptly. Without the availability of legal aid for such damages claims, the pressure on landlords not to let their properties fall into disrepair will be removed.

Illegal eviction, actual or threatened, is a horrible reality for all too many people. Under the Government's proposals, legal aid will be available only to secure an injunction for the tenant to be reinstated to the property from which he has been illegally evicted. Again, as the noble Lord said, it is most likely that tenants will not want to go back to a tenancy with that same landlord. They will want to secure recovery of their possessions but they will not want to go back to that landlord. Under the Government’s proposals, the worst landlords will be able to get away with the worst behaviour and their victims will not be protected and will not be able to obtain compensation. The availability, through legal aid, of damages claims against bad landlords is a deterrent against bad behaviour; and the aggravated and exemplary damages that are, from time to time, awarded because the court takes a particularly severe view of the behaviour of a landlord are a most important deterrent. We will not be able to see that working in the future.

These problems are all too extensive. Environmental health officers testify to the fact that there are too many bad landlords and that many of them behave with the peculiar ruthlessness with which unfortunately people tend to act in housing matters; 90 per cent of environmental health officers say that they have personal experience of landlords harassing or illegally evicting tenants. The proportions of people availing themselves of private rented accommodation are rising at the moment. The Localism Act encourages local authorities now to place homeless households in the private rented sector. The benefits cap and the cuts to local housing allowance will drive families lower down the scale of the private rented sector towards the bottom end. It seems bizarre that legal aid will not be available to people facing housing problems until they are actually on the precipice of losing their homes. It is obvious that early intervention to deal with the underlying causes is a sensible policy to prevent the underlying problems deteriorating. It is both kinder and more economic.

Removing welfare benefit and debt cases from the scope of legal aid will mean, as my noble friend Lord Stevenson pointed out, that we will see a compounding effect of people getting deeper and deeper into trouble until they face homelessness. Under the Government's proposals, only then will they be able to get legal aid to help extricate them from the crisis that they have been allowed to get into.

This policy will increase insecurity and distress among tenants. It will add to the pressure on tribunals and courts, as the noble Lords, Lord Shipley and Lord Best, told us. It will increase costs to the taxpayer because of the consequences of the distress and of the problems that will be without remedy.

The Minister prayed in aid time and again in debates on different parts of this foolish and iniquitous Bill the requirement of the Treasury that the Ministry of Justice should make its contribution to reducing the deficit. The Treasury will certainly not be swayed by the pathos of vulnerable people finding themselves in greater difficulty than they need be in, but it should be swayed by the prospect of increased costs being shunted around Whitehall so that we end up with no reduction of the deficit but possibly an increase in it. I very much hope that the Treasury will review the policy that is proposed in the Bill before we get to Report. I hope that it will look at the arguments and figures put forward by Dr Cookson of King’s College. The central case on which the Minister relies—that all this, miserable though it may be, is inescapably necessary in order to reduce the deficit—is profoundly flawed. I hope that on Report we will see major government amendments to the Bill.

[Lord Phillips of Sudbury]

My Lords, after three excellent speeches I will make only one point, following directly from the last point made by the noble Lord, Lord Howarth. What I may perhaps call the Cookson report—the King’s College report—quantifies certain knock-on costs. What it does not do is look at indirect knock-on costs. For example, in a case such as the one my noble friend referred to when he moved the amendment of somebody not getting timely advice and as a result finding that he and his family were on the street with the local authority having to pick up the problem and provide housing, along with the welfare fallout and so on, the indirect costs were not included in the figures of the King's College report. That makes the self-interest of the Government in listening to and agreeing the amendments in this group all the more acute.

My only other point was made by all three preceding speakers but is worth emphasising. The noble Lord, Lord Best, drew an analogy with Somali pirates. He talked of a small minority of exploitative landlords. That is absolutely fair; it is only a small minority of private landlords. However, they are concentrated among poor tenancies. If we throw our minds back to Rachman, we will remember that his tenants were among the poorest in London. That was no accident. Landlords who are of that evil mind know that poor tenants are least able to protect and stand up for themselves, and most easily harassed. Again, it is an issue of self-interest on the part of the Treasury to recognise that. If it does, it will see the sense of the amendments in this group without getting into morality and justice.

[The Earl of Listowel]

My Lords, I confess to feeling very troubled by what I have heard in the Chamber during this debate. I will say a few words about my concerns in particular about vulnerable families in private accommodation. A few years ago I accompanied a health visitor in the borough of Redbridge in north-east London just north of West Ham. We visited a number of families living in very poor conditions in private property. In one such home the basement was flooded and the landlord had taken no action to remedy this. Another was overcrowded. A mother and her two young children shared one room with water almost running down the walls. The third, and most shocking, was a home in which the shower and the lavatory were somehow combined in one system. It may be a small proportion of landlords, but there seemed to be a lot of them in Redbridge, back then, at least. I declare my interest as a landlord. I hope that the Minister can offer some real reassurance in his reply that the most vulnerable individuals and families in society are not going to suffer significantly because of what the Government propose.