(8 years, 9 months ago)
Written StatementsThe Government are committed to modernising the way in which justice is accessed and delivered. We are investing over £700 million over the next four years to update the court and tribunal estate, installing modern IT systems and making the justice system more efficient and effective for modern users.
Working closely with the judiciary, we have begun installing wi-fi and digital systems in our criminal courts but much more needs to be done. We want to make the entire justice system more accessible to everyone—witnesses, victims, claimants, police and lawyers—by using modern technology including online plea, claims and evidence systems and video conferencing, reducing the need for people to travel to court.
As part of this modernisation, the court and tribunal estate has to be updated. Many of the current 460 court buildings are underused: last year 48% of all courts and tribunals were empty for at least half their available hearing time. These buildings are expensive to maintain yet unsuitable for modern technology.
Court closures are difficult decisions; local communities have strong allegiances to their local courts and I understand their concerns. But changes to the estate are vital if we are to modernise a system which everybody accepts is unwieldy, inefficient, slow, expensive to maintain and unduly bureaucratic.
On 16 July 2015 I therefore announced a consultation on proposals to close 91 courts and tribunals in England and Wales. Over 2,100 separate responses were received, along with 13 petitions containing over 10,000 signatures. I am grateful to all who took the time to provide their views. It is clear from the responses that the service our courts and tribunals provide continues to be highly valued.
Having considered carefully all responses to the consultation, we have decided to close 86 of the 91 courts and tribunals. A total of 64 sites will close as proposed in the consultation. A further 22 closures will take place but with changes to the original proposals. These changes, many suggested by respondents, include the identification of suitable alternative venues, such as local civic buildings; or different venues in the HMCTS estate to those originally proposed. I am very grateful to all those who engaged with the consultation to help us to reach the best solutions.
On average, the 86 courts we are closing are used for just over a third of their available hearing time. That is equivalent to less than two days a week. It will still be the case that after these closures, over 97% of citizens will be able to reach their required court within an hour by car. This represents a change of just 1 percentage points for both criminal and county courts. The proportion able to reach a tribunal within an hour by car will remain unchanged at 83%.
For each proposal in the consultation, we have considered access to justice; value for money; and efficiency. The consultation response, which is being published today, contains details of all the decisions and changes including an indicative timetable for closures, and will be placed in the Libraries of both Houses.
[HCWS536]
(8 years, 9 months ago)
Commons ChamberI beg to move,
That the draft Social Security Benefits Up-rating Order 2016, which was laid before this House on 25 January, be approved.
With this we shall take the following motion:
That the draft State Pension (Amendment) Regulations 2016, which were laid before this House on 18 January, be approved.
May I take this opportunity to welcome the hon. Member for Ashton-under-Lyne (Angela Rayner) to her new position? I look forward to discussing and debating various issues with her over the coming months. I thank her and the hon. Member for Banff and Buchan (Dr Whiteford) for their contributions. In the short time that we have, I will try to address as many of their questions as possible. I also thank the hon. Member for Denton and Reddish (Andrew Gwynne) for his one or two interventions. I am grateful to the hon. Member for Ashton-under-Lyne for welcoming the triple lock and to her party for its support for that initiative.
The issue of communication has come up repeatedly. I just want to say that there is an awareness campaign, which is particularly targeted at those aged 55 and above. They will receive a letter—their addresses will be obtained from payroll and benefits data—providing details of their own state pension. The first phase of our communications campaign aims to build awareness among those in that age group, who will be the first to reach pension age after April 2016, and we are encouraging them to get a personalised statement. Between September 2014 and October 2015, we issued nearly 500,000 personal statements. We have factsheets, infographics, videos, calculators, YouTube videos, toolkits for stakeholders and weekly stakeholder bulletins. We will continue to do whatever is necessary and whatever we can to ensure that people are made aware of what is coming. I urge all colleagues on both sides of the House to do their bit, as Members of Parliament with access to media and to local communities, to make sure that people are aware of this very important change.
It is our intention, and it will be the case, that the new state pension will be a lot simpler and clearer for people than the previous situation, when there were opt-outs in relation to the state earnings-related pension scheme and additional pensions, as well as private pensions, occupational pensions and so on. The hon. Member for Ashton-under-Lyne said that not everyone will qualify for the new rate of £155.65, and she is absolutely right, because the new state pension is based on people’s national insurance contributions. In recent years, some people have not paid full national insurance contributions to the state because they have opted out or contracted out. Some of those people contracted out into a second, additional pension, and that has to be factored in. Alternatively, the national insurance contributions that they had contracted out of were used for an occupational pension or a private pension. If the two pensions are added together, the total will in many cases be more than £155.65.
I hope that the hon. Lady and her colleagues appreciate that if we have a system in which people’s pensions are based on national insurance contributions, they cannot, if they have not paid such contributions, be expected to get the full payment due notwithstanding the fact that some of their national insurance contributions have gone to another pension. I hope she will reflect on that point.
I gave the Minister a specific example of someone who had not contracted out because of a second pension. Will he address that point and the fact that some people have not been given adequate notice of the changes? I appreciate the point he makes about contracted-out contributions, but some people have not been given such information. I am asking for people to be given that information so that they can make alternative provision.
The hon. Lady will appreciate that I cannot give advice on individual cases at the Dispatch Box. As for communication, I have read out a whole list of measures we are putting in place to make sure that people are communicated with. If we were not doing our job properly, we would not have issued nearly 500,000 personal statements between September 2014 and October 2015. We continue to make sure that people are aware of the change. As I have said, she has a role to play, as do others. I am sorry that she expresses such disappointment, given that in the forthcoming year the Government will spend an additional £2.1 billion more than we are spending at present. There is also the pension credit standard minimum guarantee, which will ensure that the minimum threshold must be met. The state is there to assist people.
The hon. Member for Banff and Buchan mentioned frozen pensions. It has been the policy of successive Governments for the past 70 or so years not to uprate pensions for everyone. The issue is complex, but she will be aware that uprates are made in some countries where there is a legal obligation to do so. It should be remembered, however, that the pensions people get in some countries are based on a means test: if we gave everyone from Britain who is now resident in another country an uprate, our contribution to that uprated pension would be taken into account by their new home country and they would therefore be given less by the new home country.
The hon. Gentleman is shaking his head, but I assure him that some countries make pension payments on the basis of means.
This Government take the rights of pensioners very seriously, and we are doing all we can to protect them. From April, the rate of the basic state pension for a single person will go up by the biggest real terms increase since 2001. We will continue to protect the poorest pensioners. The means-tested threshold below which pensioner income need not fall—the pension credit standard minimum guarantee—will also have the biggest real terms increase since its introduction. The full basic state pension will be more than £1,100 per year higher in 2016-17 than at the start of the last Parliament. Our triple lock, our protections for the poorest pensioners and our new state pension reforms mean that we can provide pensioners with the dignity and security that they deserve in retirement. I commend the order and the regulations to the House.
Question put and agreed to.
Social Security
Resolved,
That the draft State Pension (Amendment) Regulations 2016, which were laid before this House on 18 January, be approved.—(Mr Vara.)
(8 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a great pleasure to serve under your chairmanship, Ms Vaz. I congratulate the hon. Member for Caerphilly (Wayne David) on securing this debate. He is diligent and conscientious in all that he does for his constituents, so it is no surprise that he brought this important matter to the House of Commons to get a proper answer for his constituents. I am grateful for the opportunity to respond to this debate. I understand the concerns of the people of Caerphilly about the cost of the case, but I hope the hon. Gentleman will appreciate that the justice system’s obligation to investigate cases, even when they involve high-profile individuals, and the duty on judges to make decisions according to the information before them must continue.
I have spoken previously about the Government’s commitment to a one-nation justice system, and a fundamental part of that is the rule of law. Those responsible for investigating allegations of misconduct must be able to do so robustly and without intrusion, and it is crucial that those who make decisions in the system are independent and protected from undue state influence. It is not for this place to challenge the Wales Audit Office’s investigation, the independent prosecutorial decision to bring the proceedings or the judicial decision to bring the proceedings to a close. If it is felt that the investigation or prosecution was lacking, the right place to seek redress is with the Auditor General for Wales or the Director of Public Prosecutions. Those who feel that the case should not have ended in the way it did could have requested that the judge’s decision be scrutinised by the higher courts by bringing an appropriate challenge within the timescales prescribed in law.
I listened carefully to what the hon. Gentleman said—particularly about the long time it took to arrive at a conclusion. He is, of course, aware that several factors influenced that timescale—indeed, he alluded to some of them—including the defence’s challenge of the police review of unused material, and judicial and defence counsel availability. Notwithstanding those factors, the case was concluded well within the average time for such complex cases. Cases of that nature take, on average, 25 months from charge to conclusion. That case was dealt with more quickly than the average for complex financial cases. The hon. Gentleman also mentioned listing, which is a judicial decision. Bristol Crown court sees a high number of fast-tracked sex cases, so it takes longer than usual for it to see other types of case.
The Government are undertaking a substantial programme of reform to improve the criminal justice system for those directly involved in it and the general public. In January 2015, Sir Brian Leveson published a review on efficiency in criminal proceedings, which included 56 recommendations for improving efficiency in the criminal courts within the existing legislative framework. His recommendations are the result of considerable consultation across the criminal justice system, and they cover a range of areas, including improving case management and progress in magistrates and Crown courts.
In his review, Sir Brian emphasised the need for more robust case management, and noted the importance of getting it right the first time. He recommended that one person in the police, in the Crown Prosecution Service and for the defence must be responsible for the conduct of each case. That recommendation is being taken forward as part of a better case management initiative, and will be rolled out nationally from the beginning of January following its successful introduction in eight Crown court centres in October 2015.
The initiative emphasises the importance of effectively managing proceedings while preserving judicial discretion. It aims to deal more quickly with cases where there is a guilty plea, which will free up capacity to manage more actively cases that go to trial. It aims to ensure better communication between practitioners and the court before the first hearing; more effective hearings; more guilty pleas; the disposal of many cases without the need for adjournment; and robust judicial resistance to applications to adjourn.
According to the Leveson review, to improve case management it is crucial to encourage early engagement between the prosecution and the defence. Sir Brian recommended that the criminal procedure rules make it clear that the parties are under a duty to engage at the first available opportunity. In response to that recommendation, we made amendments to the criminal procedure rules, and we are due to make more in April. Earlier engagement between parties will ensure greater collaborative working. It will allow parties to focus on the key issues, possible pleas, missing evidence and other material that could help them reach an early resolution.
I appreciate the Minister’s point and I welcome the reforms that he says are in the pipeline, but I refer him back to the costs incurred by Caerphilly County Borough Council through no fault of its own. With the benefit of hindsight, would it not have been better for case to have been heard somewhere other than Bristol Crown court if the pressures of work on it were so great? If the case had been held elsewhere, it could have been expedited, and matters could have been dealt with much quicker.
I am grateful to the hon. Gentleman for raising that issue. He will appreciate that it is for the judge to determine who pays the cost of the trial. The judicial process must be based on the legal advice that the council can take. The hon. Gentleman will appreciate that the cost of employing additional staff to manage the work while a long case is going on is a matter for the council.
On transferring the case to somewhere other than Bristol, I hope that our reforms will enable a broader perspective to be taken on board and allow people to say, “Although this is a local issue, in order to secure justice for the people involved and for justice to be seen to be done quickly, would it be better for it to be dealt with in another nearby court where there is more capacity?” I hope that our reforms will ensure that cases are dealt with quickly and promptly. If there is a delay in one court, we should certainly look at neighbouring courts that have capacity; I do not rule that out. The hon. Gentleman will appreciate that the Ministry of Justice is putting in place ambitious plans. I am confident that they will be in effect in due course, but I am sorry that they could not benefit his constituents at the time of the case that he refers to.
Improving awareness of the criminal procedure rules will also allow more robust case management. The Judicial Office has been working with the judiciary and defence practitioners to raise awareness of and embed the criminal procedure rules. Discussions have been taking place with the Bar Council, the Law Society, the Judicial College and the criminal procedure rules committee. Compliance with the criminal procedure rules will ensure that court time is deployed to maximum effectiveness and efficiency.
Sir Brian also recommended using technology to improve case management. Case management hearings have become inefficient and expensive. They are essentially administrative in nature and do not always require all participants to be gathered in the same room. He therefore encourages the use of video and audio technology to hold case management hearings outside court, reducing the time spent on unnecessary travel and making case management hearings more effective. Pilot hearings have been implemented in Reading Crown court and are soon to be expanded to Aylesbury and Oxford. Those hearings will be evaluated after a couple of months and should then inform national implementation.
I hope that the hon. Gentleman can feel assured that this Government, together with the judiciary, are taking active and practical steps to improve the efficiency of the criminal justice system. In saying that, I do not intend to imply any criticism of the handling of this particular case, as it is not the role of a member of the Government to comment on the outcome of this or any other case. As we improve the system in the coming years, nothing will be done to fetter or interfere with due process, which must be independent of Government and managed by an independent judiciary. I thank the hon. Gentleman again for raising this important issue on behalf of his constituents.
Question put and agreed to.
(8 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Hanson.
I start by thanking the hon. Member for Warrington North (Helen Jones) for moving the motion today, and for doing so very passionately, convincingly and articulately. I also thank all other Members from across the political divide who have spoken today. Indeed, I commend all those who signed the petition that triggered this debate. As we have already heard, we have debated this issue extensively in recent weeks and months, and I am grateful to have another opportunity to put the Government’s position on record.
The debate has centred considerably on state pension age equalisation, and in particular its impact on the women who are affected by it. However, it is important that we do not look at this topic in isolation. We cannot look at the changes to women’s state pension age without also acknowledging the significant changes in life expectancy in recent years, the huge progress made in opening up employment opportunities for women and the wider package of reforms—
I will not give way; I wish to make progress.
As I was saying, we must also acknowledge the wider package of reforms that we have introduced to ensure a fair deal for pensioners.
On life expectancy, people now live longer and stay healthier for longer. I took on board what the hon. Member for Worsley and Eccles South (Barbara Keeley) said, but although she may have quoted a specific figure, other figures show that life expectancy is projected to increase for both men and women. In just a decade, the length of time that 65-year-olds—
The Minister is wasting time when he could have taken an intervention.
In only a decade, the time that 65-year-olds live in good health has gone up by just over a year. Of course, this is welcome news, but the reality is that it puts increasing pressure on the state pension scheme. Even when the state pension age changes are taken into account, women in this group will on average receive a higher state pension over their lifetime than any generation before them.
I will not give way.
The Government have a duty to ensure the sustainability of the state pension scheme, and it would be irresponsible to ignore such developments.
Employment prospects for women have changed dramatically since the state pension age was first set in 1940. The most recent figures show a record female employment rate of 69.1%, with more than 1 million more women in work than in 2010. I am sure that Members welcome figures showing that the number of women aged between 50 and 64 in work is also at a record high, with more than 100,000 older women in work than at this time last year.
I will not.
Turning to our broader reforms, we have introduced a package of measures to transform the pensions system. The triple lock is massively boosting the state pension, which will be £1,000 higher from April than would have been the case if we had uprated by earnings over the past six years. In addition, we have protected the winter fuel payment and permanently increased cold weather payments. We have created a new, simpler state pension, which will come in from April with a full rate of £155.65 a week. That means that 650,000 women will receive an average increase of £8 a week for the first 10 years. As that will be set above the basic means test for pensioners, people will have a clear platform to save on.
On a point of order, Mr Hanson. May I ask for your guidance about what can be done? This is a specific debate about the WASPI campaign, but the points that the Minister is addressing have nothing to do with that debate—
Order. With due respect to the hon. Gentleman, the content of the Minister’s speech is for the Minister to elucidate and defend accordingly. It is not for the hon. Gentleman to comment on in a point of order.
We have also abolished the default retirement age so that people can work for as long as they wish without fear of age discrimination. We have introduced the most fundamental reform to how people can access their pension in almost a century through pension freedom, which has abolished the effective requirement to buy an annuity.
No one can say that the changes have not been fully considered. The parliamentary process was fully followed. We held a full, public call for evidence alongside extensive debate in both Houses. Between January 2012 and November 2013, the Department for Work and Pensions wrote to all those affected.
I will not.
More than 5 million letters were sent to addresses then recorded by HMRC. Crucially, the Government also listened during the process. On Second Reading of the Pensions Bill in 2011, the Government said:
“we will consider transitional arrangements.”—[Official Report, 20 June 2011; Vol. 530, c. 52.]
On Report, after considering the matter, Ministers made a concession worth £1.1 billion, and the time period was reduced from two years to 18 months. For 81% of those affected, the increase in the time period will be no more than 12 months.
To reverse the Pensions Act 2011 would cost more than £30 billion, which simply is not sustainable, and nor is it sustainable to reverse the 1995 changes, which some wish to do, as that would cost many billions more. It is noteworthy that if we went back to the 1995 position, it would mean that women would be campaigning for a state pension age of 60—[Interruption.]
Very well then. The Minister cites average ages, but that does not address the issue. The issue is the extra time that women have to wait for their pension and the fact that they have not been informed. The average means nothing to that.
If the hon. Lady will stop interrupting, I will get on.
I mentioned in the House earlier and I say it again now that when people need extra funds, other benefits are available. That is the case for those who are in work and those who are not. A 2004 Department for Work and Pensions report entitled “Public Awareness of State Pension Age Equalisation” found that 73% of those aged between 45 and 54 were aware of changes to women’s state pension. In 2012, further research by the DWP found that only 6% of women who were within 10 years of receiving their pension thought that their state pension age was still 60.
Several hon. Members have mentioned Steve Webb’s comments. If one reads the full transcript, one sees that he referred to £30 billion. He said that he sought a concession of £3 billion, but got £1 billion. He added that
“a billion quid is a serious amount of money”.
Reference has been made to other European countries. To put the balance right, I point out that there are countries that have already accelerated the process and equalised the pension age for men and women, such as Germany, Denmark, the Czech Republic and Greece.
The Government recognise the huge contribution that older workers make to the workforce and the country, and we are working with stakeholders to ensure that they recognise those benefits. The number of women aged 50 to 64 is at a record high, as I mentioned earlier. Hon. Members talked about carers. Under the new state pension, people who care for others will qualify for credits that will go towards their contributions to that pension.
Our collective responsibility now is to support the package of reforms. Rather than causing continuous confusion for those affected, we need to build further awareness of the measures I have set out. I again thank all those who have contributed.
(8 years, 9 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
(Urgent Question): To ask the Under-Secretary of State for Justice if he will make a statement on the provision of legal aid services.
As the Lord Chancellor and Secretary of State for Justice announced yesterday, the Ministry of Justice has had to play its part in reducing the budget deficit, and 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 in the legal aid system were due to be implemented in the current Parliament, with a second reduction in litigation fees in July 2015.
At the time when the fee reduction was proposed, the market was made up of about 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 in the market. Over time, however, opposition to that model has increased. Solicitors’ firms feared that it would lead to a less competitive market, and barristers feared that choice and quality would diminish. Besides, a process of natural consolidation was already taking place in the market.
Although we understood those arguments, we also needed to deliver reductions in expenditure, but since July 2015 there have been two significant developments. Her Majesty’s Treasury has given us a settlement that allows greater flexibility in the allocation of funds for legal aid, and it has become clear that there are real problems with 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 for 12 months the second fee cut. The Legal Aid Agency will extend current contracts to ensure that the service continues until replacement contracts come into force later this year.
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.
This is a happy day. A serious threat to the integrity of the justice system and the livelihoods of thousands of hard-working professional people—the mainly small and local solicitors’ firms that are the bedrock of local justice—has been lifted, and we welcome that.
Nothing is more important to securing access to justice than the ability of citizens to obtain competent and timely legal advice when accused of criminal conduct, but that basic human and civil right was put at risk by the Government’s ill-conceived plans. What on earth was the Department playing at in the first place? This is the latest in a series of U-turns, and once again a written statement was issued at 3 pm on a Thursday. We are only here today thanks to you, Mr Speaker, because you granted the urgent question.
Everyone who cares about the criminal justice system in our country has been saying that the Government’s proposals for new criminal contracts were a disaster from the day on which they were proposed, in June 2013. That was not only my view or that of the Law Society, the Criminal Law Solicitors’ Association, the London Criminal Courts Solicitors’ Association and the Justice Alliance; it was the view of everyone in the justice system, and I pay tribute to them all for the magnificent campaign they have fought. It was also the view of the Government’s own experts, but the former Lord Chancellor still failed to register the chaos over which he was presiding. I credit the current Lord Chancellor with having the common sense to bring this farce to an end, but I wish the Government had listened to my right hon. Friend the Member for Tooting (Sadiq Khan) when he proposed the scrapping of the scheme exactly a year ago.
What we cannot do is draw a line and forget what has happened. Questions remain to be answered, and I ask the Minister to answer the most urgent of them today. How much public money and civil service time have been spent on the abortive tendering processes, the court cases and the consultations in the past three years? Will the Minister refer his own Department to the National Audit Office, so that it can be independently investigated? Will he apologise to the firms that have closed, laid off staff or cut salaries when faced with losing contracts, and also to those who have spent thousands of pounds on bidding and winning contracts and, in many instances, taking on extra staff whom they will not now need? Will he go further, and establish what assistance can be given to those firms? Will he remove the remaining uncertainty over the second fee cut? Given that he imposed it and has now decided to remove it for at least a year, what timescale and criteria will he apply to future fee levels?
Finally for today, given the NAO’s and the Public Accounts Committee’s scathing criticisms of the civil legal aid cuts—incidentally, I learned just before entering the Chamber that the NAO has also reported a £1.1 million loss by the aborted Just Solutions International, the commercial arm of the Ministry of Justice—will the Minister bring forward the review of the Legal Aid, Sentencing and Punishment of Offenders Act 2012?
This has been an appalling use of taxpayers’ money. It has posed an existential threat to a fundamental part of our legal system, and it has caused uncertainty, failure and distress to thousands of hard-working small businesses throughout the country.
I welcomed the comments made by the hon. Member for Hammersmith (Andy Slaughter), although they were very brief. I must add, however, that his attempt to criticise what has been described as the Lord Chancellor’s sensible decision was opportunism, pure and simple. He obviously has a selective memory. I remind him that in 2009, when Jack Straw was Justice Secretary, he abandoned the criminal legal aid best value tendering scheme at a very late stage, just before the 2010 general election. I do not recall the hon. Gentleman’s grumbling to his boss at the time, and Jack Straw certainly does not recall hearing his voice. This needs to be put into proportion.
Let me now deal with the hon. Gentleman’s questions. When we embarked on the dual contract process, we had the support of the Law Society; the hon. Gentleman may wish to reflect on that. We have said that we will suspend the second fee cut for a year. We will then work with the professions, and will form a definite view in due course. As for the Legal Aid, Sentencing and Punishment of Offenders Act, the hon. Gentleman knows only too well—because I have said it many times at the Dispatch Box—that a review will take place within three to five years. [Interruption.] The hon. Gentleman is chuntering away, as he is wont to do on a regular basis. He says, “How much money?” He knows full well that all shades of Government, both Conservative and Labour, if they listen to people and feel that a decision needs to be changed, will make that change. Just as the Labour Government made decisions to change policies, we have made such a decision. I do not recall previous Governments wasting time and effort in trying to make calculations when they have made a change of direction.
Our decision has been welcomed by the profession, and we are pleased about that. We now want to look forward and move ahead.
The intelligent lawyer and the intelligent decision maker are alert to the dictum attributed to Keynes: “When my information changes, I change my conclusions.” Surely the Lord Chancellor should be commended rather than criticised for doing that on this occasion.
Will my hon. Friend give us some more details of the particularly welcome initiative to involve the professions themselves through the proposed advisory council?
My hon. Friend is right to say that the Lord Chancellor should be commended. Mark Fenhalls, QC, the chairman of the Criminal Bar Association, said yesterday:
“It takes courage to make such decisions.”
Perhaps the hon. Member for Hammersmith will reflect on that sentiment.
The Lord Chancellor has his advisory board, and he will be working with the profession to ensure that as we progress further, the public will benefit, and the taxpayer who funds the legal aid budget will gain the maximum possible value.
Steve Hynes, director of the Legal Action group, has said:
“In its planning and execution the MoJ has demonstrated shocking incompetence with this tender exercise.”
Will the Minister now launch a review of his own Department’s competence?
I appreciate that the announcement was made a relatively short time ago, and that the hon. Lady has probably not had an opportunity to hear what the profession has said. The profession has wholeheartedly welcomed the proposals, and I think she should note those comments, rather than individual comments.
Will my hon. Friend write to me, explaining what impact the proposal will have on lawyers in the west country, especially those in my constituency, which contains, at Charles Cross, the busiest police custody suite in England?
I should first say that I used to be a barrister before entering Parliament, and remain a non-practising door tenant of Civitas Law in Cardiff.
A year ago, the previous Lord Chancellor said these very reforms were both sustainable and essential. I thought that was completely wrong and I am delighted that the current Lord Chancellor agrees with me, but can the Minister tell us why the previous Lord Chancellor got so many things so badly wrong?
It lowers the tone of this debate when, not for the first time, the hon. Gentleman takes his lead from the hon. Member for Hammersmith by resorting to personal abuse. There have been two significant developments, which have allowed us to make the announcement. First, thanks to the economies we have made elsewhere in the MOJ, Her Majesty’s Treasury has given us a settlement that allows us greater flexibility in the allocation of funds for legal aid; and it has also become clear, as I have said, that there are real problems in pressing ahead as initially proposed. We recognise those issues and we want to do the best for the profession, and that is why we have taken this decision.
The Minister’s Department has wasted close to £15 million now on ill-judged projects. What does this latest U-turn bring the running total to?
The hon. Gentleman talks about millions of pounds; may I just remind him of the billions that were squandered and wasted when his party was in government, and that if it was not for its squandering and mismanagement, this Government would not have had to take the tough decisions we are having to take?
The Saudi prison contracts, the secure college, the book ban, the outsourcing of the collection of fines by courts, the criminal courts charge, and now two-tier, the latest in the long line of U-turns by the Justice Secretary on measures taken by his predecessor. If he is looking for his next U-turn, may I suggest he looks at the repeal of the Human Rights Act—and, of course, the closure of the court in St Helens?
I am sure the hon. Gentleman’s constituents will be grateful that he managed to slip in that last bit concerning his court. As I have told him previously, no firm decisions have been taken on that issue. On other matters, I am pleased that the hon. Gentleman pays such detailed attention to what is happening in the MOJ.
I welcome the Justice Secretary’s move to scrap the two-tier system. He said HM Treasury has given him a settlement that allows him greater flexibility in the allocation of funds for legal aid. Will he give us more detail about the settlement and whether it will extend further than what he has already said?
I refer the hon. Lady to the Chancellor’s autumn statement. He said he would be allowing £700 million-plus for the courts reform programme and there would be £1.3 billion for reforming the Prison Service. We in the MOJ are also consolidating our estates programme generally in terms of the offices and space we use. If the hon. Lady reads the statement, she will also be aware that my Department will be making 50% administration cuts by 2019-20.
The Justice team must be spinning like tops at the moment. Would the Minister care to estimate how many U-turns there have been since the new Secretary of State took his position?
(8 years, 9 months ago)
General CommitteesI beg to move,
That the Committee has considered the draft Civil Proceedings, Family Proceedings and Upper Tribunal Fees (Amendment) Order 2016.
It is, as always, a pleasure to serve under your chairmanship, Mr Davies. I take this opportunity to welcome the hon. Member for Neath; I welcomed her yesterday during oral questions in the House, but this is the first time that she and I are speaking in a statutory instrument Committee together. I look forward to working with her in the months ahead.
The purpose of the draft order is to introduce enhanced fees for certain types of civil and family proceedings. Specifically, the order will increase the fee to issue a possession claim in the county court to £355. It will also increase the fees for a general application made in civil proceedings to £100 for an application made by consent and to £255 for a contested application. The changes will also apply to general applications made in judicial review proceedings heard in the upper tribunal of the immigration and asylum chamber.
The order will also make a small number of increases to other fees in judicial review proceedings. It will increase the fee for copy documents from £5 to £10 and for a summons or order for a witness to attend the tribunal from £40 to £50. There are, however, general applications related to certain proceedings for which, given the particular sensitivities involved, we feel it would be inappropriate to charge a fee above cost. Those are applications in insolvency proceedings, in relation to an injunction for protection from harassment and for payment to be made out of funds held in court. Finally, the draft order increases the fee to make an application for a divorce to £550.
Where users are charged a fee to access public services, the fee should normally be set at a level to cover the full cost of delivering those services. For many years, the civil and family courts have operated on that basis. Section 180 of the Anti-social Behaviour, Crime and Policing Act 2014 provides the Lord Chancellor with a power to prescribe fees above cost on the basis that those fees are used to finance an efficient and effective system of court and tribunals. The power was used for the first time in March last year to increase the fees for money claims.
Hon. Members will be well aware of the difficult economic situation we face and the fact that this Government were elected to continue our work to fix the economy. That is what we are doing. It is clearly right that we continue to look for opportunities to reduce public spending, including on the courts and tribunals and those who use them. In the current financial climate, it is right that we look again at the balance between what users pay towards the overall cost of the Courts and Tribunals Service and the financial burden that falls to the taxpayers. All the increases in the draft order have been subject to consultation and we announced those we plan to take forward in the Government response published in July last year.
The reason for introducing the fee increases is to ensure that courts and tribunals are funded in the long term. Courts and tribunals fulfil a vital function in our society, ensuring access to justice for those who need it. Access to justice is critical to the maintenance of an effective and functioning democracy because it helps to maintain social order, underpinning an effective economy and upholding the rule of law. It is crucial that those principles are preserved so that people who need it have ready access to courts and tribunals. A strong economy is a pre-requisite for effective and affordable public services.
Hon. Members will be aware that this Government inherited a growing budget deficit, increasing public sector debt and an economy in recession. We made economic recovery our first priority, which has required some difficult decisions. The action we have taken is working and the recovery is now well under way, but further reductions in spending are essential if we are to eliminate the deficit. We have secured more than £700 million of funding to invest in courts and tribunals and we have been working closely with the senior judiciary to develop a plan to invest that money in reforming the courts and tribunals so that they can deliver swifter, fairer justice for everyone in England and Wales at a lower cost. There is, however, only so much that can be done through cost-efficiency measures alone.
If we are to secure the sustainable funding of courts and tribunals, we must look to those who use the system to contribute more when they can afford to. We consulted on all the proposals and have carefully considered all the responses we received. We have listened to what people had to say and have decided to limit the increase in the fee for a divorce to £550, rather than to the £750 that was originally proposed. We estimate that the measures set out in the draft order will generate about £60 million per annum in additional income, with every pound collected spent on providing an efficient and effective system of courts and tribunals. We recognise that fee increases are not popular, but they are necessary if we are to deliver our promise to fix the economy while protecting access to justice. I commend the order to the Committee.
I welcome the hon. Lady’s comments and her agreement with the general thrust of the order—the need for an efficient Courts and Tribunals Service. I am happy to give consideration to the points she has made, and I hope to give her some assurance.
I recognise, as do the Government, that divorce is a very difficult time for the people concerned, particularly where families are involved. It is, however, important to remember two basic points. First, we have listened to the public. In response to their concerns, we did not go ahead with the initial proposal to raise the fees to £750, but will instead raise them to £550. Secondly, where people are unable to afford the fees, we have a remission scheme in place that will give them full or part remission, depending on their means.
The point I was making is that the Government are making a profit on the £270 cost of divorce. That was my first point. Also, how difficult is it to get through that remission system? I understand that it is quite difficult.
As far as the profit element is concerned, the hon. Lady will appreciate that we passed legislation to make it possible for fees to be raised to a higher level than simply cost value. She will appreciate, I hope, that the Government have a mandate to fix the economy, and that mandate was given at the general election. We put our cards on the table—our manifesto was there—and said that we would continue to have to take some tough decisions.
The increase is not an easy decision, and I do not for one moment say that it is. It is a difficult decision, but I hope she will accept that it is necessary as part of our overall scheme to ensure that we can raise sufficient funds. Through that, we can ensure that the responsibilities of the economy are taken on board by this generation and not passed on to the next or to our grandchildren.
In their modelling, the Government looked at a 10% or a 20% fall in case load volumes. Will the Minister share with the Committee where those falls are expected to land? Are we expecting to see a disproportionate reduction in the number of applications for divorce as opposed to other proceedings covered by the fee increase?
It is our expectation that where people need to divorce, they will go through that divorce. Where two people are in a relationship that is not working, they will need to separate, and many will go through a divorce. The increase will not impact in the way that the scaremongering would suggest, with people prevented from divorcing and forced to stay in abusive relationships. They will not, because the issue concerns funding and money. Where someone is saying, “I cannot afford the fees”, the answer is that remission is available.
The hon. Member for Neath asked how the remission is available. We are constantly looking at the remission system to ensure that it is easily accessible and easy to understand. We have looked at that in the past, and I am happy to continue to look at it. If she is aware of any issues or improvements, I am happy to listen, because I want to ensure that the process is made as simple and easy as possible for those in need of remission, so that what is there as of right is available, provided they meet the criteria.
May I press the Minister on this issue? He said that he does not think that those who want a divorce are likely to avoid going through the process, but the Department has modelled what will happen with a 10% and a 20% fall in case load volumes. My specific question—if he does not have the answer immediately, I am sure he can get support from somewhere—is about the percentage reduction. If divorce fees are put up by more than 30%, will we see fewer divorce applications? I want to know from the modelling how many and the percentage we expect.
My hon. Friend asks a fair question. I do not, as he will appreciate, have the figures to hand. If my officials can give them to me during the course of the debate, I will happily mention what they are, but otherwise I am happy to write to him afterwards.
I emphasise that we have listened. We have not gone ahead with the proposed increase that we would have liked, and I assure the Committee that measures are in place to ensure that those in difficulty are looked after and that remission is available. I commend the order to the Committee.
Question put.
(8 years, 9 months ago)
General CommitteesI will call the Minister to move the first motion and speak to both the instruments. At the end of the debate, I will put the Question on the first motion, then ask the Minister to move the remaining motion formally.
I beg to move,
That the Committee has considered the draft Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016.
With this it will be convenient to consider the draft State Pension and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2016.
May I say what a pleasure it is to serve under your chairmanship, Ms Buck? May I also extend warm congratulations to the hon. Member for Ashton-under-Lyne on her appointment? I very much look forward to working with her during the months to come.
As both the regulations and the order deal with the new state pension, it is sensible to debate them together. I am satisfied that these instruments are compatible with the European convention on human rights. The regulations deal with four topics. The first is the calculation of increments where a person has deferred their new state pension. The second is transitional arrangements for inheriting graduated retirement benefit. The third is the availability of upratings on state pension where a pensioner is living overseas. And lastly the regulations make a technical amendment to regulations relating to contracted-out occupational pension schemes.
As regards deferral of the new state pension, this provision deals with calculating the weekly increase that a person who defers their new state pension will receive when they finally claim. Specifically, it sets out how that calculation is to be performed when there is a change in the weekly rate during the deferral period for a reason other than uprating—for example, where a person is widowed and becomes entitled to an inherited amount under the transitional arrangements.
The provisions introduced by regulation 4 enable a person in the new state pension system to inherit graduated retirement benefit where their deceased spouse or civil partner is in the old state pension system—that is, they either reached state pension age or died before 6 April 2016. The survivor will be able to inherit half the deceased’s graduated retirement benefit—the same as they would have inherited under the pre-2016 rules. This protection of the old-rules inheritance will apply provided that the same conditions are met as would have applied in the old system and provided that the marriage or civil partnership existed before 6 April 2016. These arrangements mirror the transitional arrangements for inheriting additional state pension set out in the Pensions Act 2014. As graduated retirement benefit was the original earnings-related state pension, the forerunner of SERPS—the state earnings-related pension scheme—it makes sense to treat it in the same way.
The provisions introduced by regulation 4 enable the survivor of someone who reached state pension age before 6 April 2016 and deferred their old state pension to inherit a weekly pension increase or, if applicable, a lump sum payment based on the deferred graduated retirement benefit. Again, there are equivalent provisions in the Act that protect the existing inheritance arrangements for the survivors of people who deferred an old state pension.
Regulation 4 inserts a new part 7 into the State Pension Regulations 2015, providing for restrictions on the uprating of the new state pension for persons living overseas. As hon. Members will be aware, the state pension is payable worldwide, but upratings for people who are not ordinarily resident in Great Britain are generally restricted to people living in the European economic area, Switzerland, Gibraltar or countries with which there is a reciprocal agreement that provides for uprating. That has been the policy of successive Governments for the past 70 years, and these provisions extend the same policy to the uprating of the new state pension. We are, however, introducing a change in the way in which we treat deferral in overseas cases.
Under the existing arrangements, when a person who has deferred their state pension while resident in a country where upratings do not apply finally claims, they will have both the amount of their weekly pension and their deferral benefit based on the current rate of state pension in force. That applies even though pension upratings would not have been received if they had not deferred their pension. The regulations remove that anomaly for those in the new scheme so that we treat people who defer their pension consistently, regardless of where they live.
Regulation 6 addresses a procedural error in an earlier set of regulations, the Occupational Pension Schemes (Schemes that were Contracted-out) Regulations 2015, which were laid before the House on 16 July 2015. In brief, those regulations were made using the negative procedure, but they contained two provisions that should have been subject to the affirmative procedure. We revoked the statutory instrument and remade it on 16 September, minus the affirmative provisions, which are now made by regulation 6. The substantive provision is the insertion of new regulation 27A into the remade regulations. That simply carries forward an existing provision that sets out requirements relating to payment of survivor benefits where a pension scheme has converted guaranteed minimum pension liabilities into ordinary scheme benefits.
The second of the two statutory instruments that we are considering is the draft Pensions Act 2014 (Consequential and Supplementary Amendments) Order 2016. As the title indicates, the amendments are essentially technical in nature, rather than implementing substantive policy measures. I commend the regulations and the order to the Committee.
It is a pleasure, Ms Buck, to serve under your chairmanship in my debut in a Delegated Legislation Committee. I thank you for your kindness in allowing me to sit down throughout the proceedings. As Members will have noticed, I am not quite operating at full capacity. I had an accident over the weekend, in which I managed to fracture my elbow and damage my ribs. I am sure that that will not stop me carrying out my duty as a member of the Opposition to scrutinise the measures before us.
Absolutely—the Opposition have some fantastic Whips. As the Minister outlined, in the Pensions Act 2014, the coalition Government legislated to introduce a new state pension for persons reaching state pension age on or after 6 April this year. We are considering regulations that will implement several key features of that settlement. Several aspects of the new legislation have significant implications for future pensioners, and I will touch on some of them in my contribution.
Under the new scheme, the Government intention is that individuals who qualify for the new state pension will receive it on the basis of their contribution record. The rule that allows an individual, under the current state pension, to derive entitlement based on the national insurance record of a former spouse or civil partner will end, with some transitional protection. Although the changes are likely to affect a relatively small number of people, their impact on those who are affected may be large. Perhaps the Minister will confirm that in an extreme scenario, a woman who has no entitlement in her own right and is widowed could end up with no state pension, rather than the £115.95 she could expect to receive under the current system.
In addition to the amendments on inherited graduated retirement benefit, there are new features that will affect pensioners overseas. In the new pension scheme, as the Minister outlined, state pensions will be uprated in line with earnings only if the recipient is resident in an EEA country or in a country with which the UK has a reciprocal agreement. Furthermore, many people who receive the state pension and who live abroad may have been impacted by the Government’s temperature test for the winter fuel allowance, which was introduced for the first time this winter. The changes could result in an overlap between those who become ineligible for winter fuel allowance and those whose pensions have not been uprated.
State pension deferral is of particular significance. The option to defer one’s pension in order to receive a larger amount has been part of the system since 1948. Under the new state pension, the terms of such deferral will change, resulting in a less generous return. Given that the bulk of the measures before us today are technical, I hope not to divide the Committee, but there are a number of comments that I wish to make and questions that I hope that the Minister can answer. Let me start by making the general point that the Government’s track record in communicating pension changes falls well short of what the public would hope and expect. Recent analysis that the Department of Work and Pensions published on the new state pension makes it clear that millions of people will receive a significantly lower state pension in future. Some will be more than £500 a year worse off. The Government should be doing far more to inform those affected, especially people who are nearing retirement and therefore have the least notice or time to consider the impact.
The same is true for the regulations we are considering, especially the changes to derived entitlement and inheritance rules. The regulations apply to the new state pension that will be introduced in April, so they have come before us are very late in the day, given that they arise from primary legislation that the House agreed in 2014. Perhaps the Minister can tell us why the Government have left it until now to table these measures.
In any event, Age UK, among others, has called on the Government to do far more to contact people who are likely to be affected. In its evidence to the inquiry by the Select Committee on Work and Pensions on the state pension, it said:
“There are DWP materials highlighting credits and ways to increase the State Pension, but people need to know they may be affected. We believe the DWP should contact people with gaps in their record individually to highlight the changes and explain options…In the most extreme situation, a woman with no entitlement in her own right, who is widowed, could end up with no State Pension compared to an expected £115.95 under the current system. Most will have some contributions in their own right so will not lose this much, but they could still receive significantly less than they are expecting. Couples in this situation need to be made aware of the changes as they may be able to review their retirement plans.”
When asked how the Department was planning to communicate with those affected, the Minister for Pensions replied that we cannot foresee who is going to become widowed in future. I think it is fair to say that that is not exactly a helpful response. I would be grateful if the Under-Secretary provided clarity on what action the Government are taking to communicate these changes, in particular to those with gaps in their record who are likely to be directly affected. I believe there is a pool of people they can inform who could potentially be widowed in future.
Will the Minister also give us an estimate of who will be covered by the transitional protection? How many people does he estimate will lose out as a result of the changes in future years? In the context of those facts, what would be the cost of directly contacting individuals with gaps in their national insurance record? Does the Minister think that that cost is prohibitively expensive? While these changes are likely to affect a relatively small number of people, the impacts on those affected may be very large—the Minister may wish to expand on that, based on official estimates. That is one reason why the Select Committee, in considering the draft legislation, recommended that the Government go further in finding a solution for those women who might be seriously affected.
I will not repeat the debates that were had in the House, but if the Minister can give those women any further reassurance on the terms of transitional protection, that would be welcome. In any event, it is crucial that the Government take the issue of communication far more seriously and learn the lessons from previous instances when they failed to communicate changes effectively: most notably, of course, there is a group of women born in the 1950s who were not given proper notification of acceleration in their state pension age.
On that issue, will the Minister inform us whether the Department has undertaken any further work on transitional protection for the group of women most affected? Will he commit to provide the House with details of any modelling the Government have used when looking at different options for transitional protection; for example, for specific cohorts, such as those born between 6 April and 5 December 1953, who will be particularly affected by the acceleration? He will note that I have tabled questions on that subject, but given Ministers’ stated goal of being the most transparent Government ever, perhaps he can commit to answering them fully and publishing the relevant material before Monday’s debate on the issue.
Turning to another aspect of the regulations, many people who live abroad and receive a state pension may have been impacted by the Government’s temperature test for winter fuel allowance, which was introduced for the first time this winter, as I mentioned. Will the Minister tell the Committee how many people became ineligible for winter fuel allowance as a result of these tests? What is the overlap between those who became ineligible for winter fuel allowance and those whose pensions have not been uprated?
As well as freezing overseas pensions, the Government are freezing the savings credit element of the pension credit, as announced in the autumn statement. Will the Minister confirm that some of Britain’s poorest pensioners will be worse off as a result of this measure, and will he commit to publishing a more detailed impact assessment than has been produced to date? Exactly how many people will be worse off, and by how much? Finally, on the issue of state pension deferral, how much do the Government expect to save from the changes to the deferral? How many people have chosen to defer their state pension in this financial year, and what are the Government doing to ensure that those who defer are made aware of these changes to the deferral provisions under single tier pensions? I hope that we have some substantive answers on those points and in that spirit I look forward to the Minister’s response.
My thanks to the three contributors to the debate. I will try to address as many of their questions as possible. I will start by clarifying a point in the argument about women who might have no entitlement to pension. Under the transitional arrangements, a woman may still inherit a proportion of her late spouse’s additional state pension or half of his protected payment, depending on when he reached state pension age.
I was asked why my Department has left it until now to introduce these measures. I hope the Committee will appreciate that time is needed to develop legislation underpinning the new state pension, and to secure parliamentary time for debating and making the necessary legislation. It has been suggested that Government should do more to inform those affected by the changes to entitlement. The Government are always looking for the channels and media that work best. People sometimes assume that direct mail is the right approach, but experience has shown that is not necessarily the case. We have undertaken direct mail exercises in the past, and evidence suggests that other communication channels can be as or more effective.
My Department conducted a test in 2014 issuing 6,000 personalised letters with the aim of encouraging people to ask for a state pension statement, and only 79 requests for a statement resulted from that mailshot.
I understood that the Department’s justification for not notifying people was that it had been given some advice around data protection. In those circumstances, what are the other communication methods that the Minister referred to?
I am sorry to state the obvious but, other than writing letters, there are social media, emails, articles in newspapers and other publications. There are a variety; I list only some of them. Sadly, the hon. Gentleman does not seem to have moved into the 21st century and still seems to think that everybody should get a letter through their letterbox. Times have moved on and he needs to move with them.
The point, which the Minister may have missed, is that if his Department has genuinely been given information about data protection and that has limited the number of letters it can send to people, what information has he had about emails and social media? He can stand there and pretend he is in the 21st century, but how many emails and other examples of social media has he used with individual people and what data-protection advice did he get before he did so?
I do not think anyone in the Committee would expect me to give precise numbers about how many emails have been sent out by a specific Department. If I may remind the hon. Gentleman, his original question was what are the forms of communication. That is the question I answered. If he now wishes to change the question and say he wants specific numbers, because he is not happy with the answer I gave, I think the Committee will be sympathetic to the response that I cannot give the precise number of emails that have been sent out.
This is a massively important point. Anyone who is involved in an occupational pension scheme or any other type of scheme, will be used to getting annual letters telling them exactly what their entitlements are. Given the importance of this, the Government must communicate with all potential pensioners in a fair and reasonable manner. That means that the DWP has a duty to inform such people by letter—that would be the established practice. I cannot for the life of me understand why the Minister is hiding behind data protection. The Government have a duty to make sure that people prepare adequately for their pension. The Government must take that responsibility and communicate effectively.
I thank the Minister for giving way and for being generous with his time. Can he inform the Committee of historic response rates to the sort of letter that he is talking about? Is it equivalent in some way? What advice has he been given on how to improve response rates through the use of new media, such as the social media to which he referred?
I do not have the precise details to hand, but I can say that it is an accepted fact that many people now use the new form—the technological advances of the 21st century—for communication purposes. We fought a general election less than a year ago in which the modern form of communication was used by politicians across the political divide. If it were the case that that was ineffective, and people were not taking note of that, we as politicians who aspire to lead and represent our constituents would probably have resorted to the old system. The fact is that the new, modern communication does work and that is why every single person in this Committee resorts to it.
As I said earlier, when DWP conducted a test in 2014 issuing 6,000 personalised letters with the aim of encouraging people to ask for a state pension statement, only 79 requests for a statement resulted from that mailshot. I think that answers the questions more than anything else.
May I try to help the Minister? In my contribution, I was referring to the fact that we have to learn the lessons from the past. Since becoming the shadow Pensions Minister, it is clear to me—and my mailbox makes it clear—without going into the issues of the WASPI campaign and women in the 1950s, that people do not feel that they are being communicated to in the most effective way. I urge the Minister to take all opportunities—written, social media, magazines, telephone—to do so. Whatever way he does it, it needs to be done, because of the implications for some of these people. It is not acceptable for the Minister to say, “Well, it may not affect them because they may not be a widower”. Something needs to be done to improve communication to people who are affected by these measures.
I take on board what the shadow Minister says. Following the Pensions Act 2011—I know we are not dealing specifically with that issue—millions of people did get a letter, and the letters were sent out according to the details that were held by Her Majesty’s Courts and Tribunals Service.
First, will the Minister accept that using social media for the target group that we are talking about is probably one of the most inappropriate ways, since the people coming up to retirement age who require this information are the least likely to use it?
Secondly, rather than put the onus on the people who might need information about their pension, would he accept that perhaps the information should be given to them? Surely DWP knows where there are gaps and where people are likely to be disadvantaged by the changes. Should they not be notified by the Department, rather than the Department requesting them to make contact?
There is no one specific form of communication that my Department will be looking at. We recognise the various forms of communication that exist in the modern world and we will seek to use some of those as we feel they will best target the relevant people. I take on board what the hon. Gentleman says, but it is important to recognise that there is no single form of communication that we use. We recognise that in the modern world there are various forms and communicate accordingly.
This is a massively important point. We all understand that social media is a wonderful tool—the Minister has referred to what was done in the election campaign and so on—but we are talking about the fundamental right that people have to a pension. People have paid national insurance; they deserve to be told by DWP what they are going to get. That is not a message to be delivered by social media, it is a message that should be delivered by letter. That is the right thing to do, and the Government must do it.
May I put on record, since we are talking about how my Department ensures that people know about the changes, as well as all the items I have just mentioned, the “Know the Facts” communication campaign focused on building awareness for those aged 55-plus, who will be the first to reach state pension age after the new state pension is introduced? That campaign encouraged people to get a personalised statement. Between September 2014 and October 2015, nearly half a million statements were issued. In the current phase of the campaign we are looking at specific groups who may need more detailed information, including people who have been contracted out, have been self-employed, may have a low number of qualifying years, or may be affected by changes to the rules on deriving an inherited state pension.
A range of products is available to help people understand the impact of the changes. These include factsheets, infographics, videos, calculators and content for PensionTube, a YouTube channel dedicated to pensions. The campaign advertising also encourages people to engage with material online, and there is a range of supporting materials on www.gov.uk. We have in place extensive stakeholder communications with third-party organisations and have held stakeholder forums, produced a toolkit for stakeholders and continue to issue weekly stakeholder bulletins. We do communicate with the relevant people outside, we will continue to do so, and we will continue to make sure that people are appreciative of the message. I commend the regulations and the order to the Committee.
Question put.
(8 years, 9 months ago)
Commons Chamber5. What steps he is taking to ensure that access to justice does not depend on ability to pay.
We are committed to ensuring that our justice system delivers faster and fairer justice for all our citizens. Reform of our courts and tribunals will bring quicker and fairer access to justice and create a justice system that reflects the way people use services today. We have also ensured that legal aid remains available for the highest priority cases, for example where people’s life or liberty is at stake, where they face the loss of their home, in cases of domestic violence, or where children might be taken into care.
The result, as the Lord Chief Justice extraordinarily reported two weeks ago, is that:
“Our system of justice has become unaffordable to most”.
Two constituents were sacked unfairly. One went to tribunal but was unable to afford legal representation and therefore lost. The other immediately gave up. With justice now available to only the well-off, does the Minister have any serious proposals to open up access to justice to ordinary people?
I am grateful to the right hon. Gentleman for raising the issue of employment tribunals, because it allows me to say that this Government’s aim is to ensure that people do not have to go to court or tribunal in the first place, and therefore do not have to incur the legal expenses or experience the stress. In the case of employment tribunals—he might not be aware of this—the ACAS early conciliation service, which is free, was used by 83,000 people in its first 12 months. I very much hope that when constituents bring problems to his surgery in future, he will point them towards that free service.
Since the Government changed the criteria for access to legal aid there has been a huge increase in claims of domestic violence. Has the Minister made any assessment of the link between those two items?
The Law Society describes access to justice as being
“on the verge of a crisis”.
Funding for civil cases has fallen by 62% since civil legal aid was cut. Will the Minister carry out a full review to understand the equality impact of the changes in civil legal aid?
Some of the people who would struggle the most to pay court fees are those affected by family breakdown, often in chaotic families. Will my hon. Friend update the House on what plans he has to simplify and reduce costs to access child arrangements orders, and will that include any further statutory rights for grandparents?
We learnt this week that a district judge is suing the Ministry of Justice, blowing the whistle on the rising number of death threats and the increasingly violent claimants that our judges are having to deal with day in, day out. Given that that comes so soon after the Lord Chief Justice’s warning that judges face a rising number of challenging and emotionally charged cases, what action is the Minister taking to address these claims, or is this just another admission that his party’s failed austerity policies have made our courts more dangerous, both for judges and for victims?
6. What steps his Department is taking to improve prisons’ engagement with employers; and if he will make a statement.
T2. I know that my hon. Friend regards access to justice as a clear priority. With that in mind, and given the large area of north-east Cheshire that will be without easy access to a court under the proposals in the current consultation, can he tell the House what progress is being made in considering the Macclesfield proposal for a single, combined Macclesfield justice centre?
I thank my hon. Friend for the meeting we had and for the justice centre report that he and his constituent presented to me. He will be aware that we are giving serious consideration to that report and, indeed, to the 2,000-plus submissions made in the consultation, to which we will respond soon.
T3. Women’s Aid published a report last week entitled “Nineteen Child Homicides”. It tells the story of 19 children and two mothers killed by known perpetrators of domestic abuse in circumstances related to unsafe child contact. How will the Department work with Women’s Aid and others to ensure that no further avoidable child deaths take place where perpetrators of domestic abuse have been allowed contact through the family court?
Following the question from my hon. Friend the Member for Halesowen and Rowley Regis (James Morris), what steps are being taken to ensure that all prisoners with mental health issues are dealt with safely, appropriately and compassionately?
Thank you, Mr Speaker. I greatly appreciate that.
The Minister will be aware of the strength of representations from Torbay about the proposal to close Torquay magistrates court. What progress is being made in the consideration of that proposal, and in the making of a decision to keep justice local in the bay?
(8 years, 9 months ago)
Written StatementsJust prior to the Christmas recess, an error was identified in an online version of form E. This is the form provided by Her Majesty’s Courts and Tribunals Service in order to enable people to disclose financial information during divorce and similar proceedings.
This fault meant that the automatic calculator in the form calculated the wrong total for an individual’s net assets by failing to deduct certain liabilities.
The Ministry of Justice was alerted to the fault on 10 December 2015 and a corrected version of the form was put online on 14 December. However the wider implications of the faulty form were not immediately recognised.
As soon as I was made aware of this issue on 16 December, I ordered an urgent investigation.
The investigation found the faulty formula was present in versions of form E which were online between April 2014 and mid December 2015 and between April 2011 and January 2012.
A total of 36,527 cases contain a version of form E filed from these periods. HMCTS staff have now reviewed all these cases and found that 3,638 files—10%—contained the faulty calculator version of form E with an incorrect figure for net assets figure in the summary table.
A total of 1,403 of these cases are still live, allowing HMCTS to intervene immediately to clearly flag these cases to the courts in order to avoid the error affecting the final orders in these cases.
The remaining 2,235 files—6.1%—were closed cases. Although the faulty form was used in these cases, it will not necessarily have had any effect on the ultimate outcome. Form E is only a part of the material used by the parties and the court and is used at an early stage, so the information is often disputed or superseded by further information introduced during proceedings.
Following the error coming to light, HMCTS established a dedicated email address which people could use if they were concerned about their own case: formE@hmcts.gsi.gov.uk. This email address was advertised on our website and also in all responses to media enquiries. As of 21 January, 51 members of the public have emailed us about their case.
I have instructed HMCTS to write to all parties in the 2,235 closed cases. The letter expresses our sincere regret for the error, sets out what happened and explains that, although form E is just one part of the evidence used in their case, there remains a possibility that the error affected the final outcome.
The letter sets out options available to people involved in these cases. Some may wish to do nothing, if, for example, they know that the error was corrected during the proceedings or they do not wish to reopen their cases. If people think they have been affected by this error then they can apply to the court to vary or set aside their order. My officials consulted the president of the family division about the court rules and procedures that would apply to such applications or for any other proceedings that might be open to the parties. My officials also consulted the president on the development of a specific form for such applications. We have provided a link to the new form in our letter to the parties, as well as guidance on how to complete the form.
I have instructed that no court fee will be charged for making this application, and this is also made this clear in the letter from HMCTS.
We are also uploading a new version of form E which makes clearer how the calculation of net assets should be made. We will also consider the future of form E as part of our broader court reforms and the automatic calculator function will be disabled during this process.
This failure should not have happened. Divorce proceedings can be very difficult and I sincerely apologise for this situation and any distress it may have caused.
[HCWS485]
(8 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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With respect, I am not prepared to go into the hon. Gentleman’s Daily Mail-reading fraternity line. Frankly, that is outrageous. One thing I think the Bach commission will establish is consensus of opinion, so I will not make Opposition policy about the residence test on the hoof, but it is disgraceful that women who have been trafficked will probably be refused access to law as a result of the Government’s proposed changes.
indicated dissent.
Of course there are exceptions, but we have seen how exceptions have failed. The Government must be careful. I finish on the point made by the hon. Member for Warrington South—
May I say what a pleasure it is to serve under your chairmanship this morning, Mr Bailey? I congratulate the hon. Member for Aberavon (Stephen Kinnock) on having secured the debate. I also thank the other hon. Members who have contributed. This important subject is capable of arousing many passions, and I am pleased that the debate, although lively at times, has been conducted in a measured tone. I very much hope that will continue.
Let me be clear at the outset: the Government share the passion for a justice system that works for everyone. I have spoken previously about our commitment to one nation justice, which is fundamental to the rule of law. At the heart of one nation justice is equality. We are committed to making sure that our justice system delivers faster and fairer justice for all citizens, not just some. We are committed to a justice system that safeguards and protects the vulnerable and that works better for victims and witnesses. It must be recognised that legal aid is only one part of the balanced provision of access to justice, but it is nevertheless an important part, and I accept that there is a responsibility on the Government to ensure that it is available for those in the greatest need.
When the programme to reform legal aid commenced in 2010, the scale of the financial challenge facing the Government was unprecedented. The coalition had to find significant savings, which meant making difficult choices. Despite that, we have made sure that legal aid remains available for the highest priority cases, such as those where people’s life or liberty is at stake, where people face the loss of their home, as in cases of domestic violence, or where people’s children might be taken into care. It is also available in relation to the treatment and detention of people experiencing mental health problems and in cases concerning the best interests of people who lack mental capacity.
Tackling domestic violence remains a Government priority. For that reason, we have retained legal aid for the purpose of obtaining urgent protection via an injunction. In addition, in private family law cases—those concerning child arrangements and financial matters—funding may be available for those who will be materially disadvantaged by facing their abuser in court.
I hope hon. Members will accept that it is reasonable to ensure that the correct cases attract funding. However, we have listened and responded to specific concerns. That is why, during the passage of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, we made changes to make evidence easier to obtain. In April 2014, we expanded the list of evidence accepted in applications for legal aid in private family cases. We also extended the definition of health professionals to include psychologists. We made further changes in July 2015, including by adding new offences to the list of domestic violence and child abuse offences. Further regulatory changes ensure that, once a particular form of legal aid has been granted, no further evidence needs to be submitted for someone to receive legal representation for their case. We will, of course, continue to keep the evidence requirements under review.
Mention has been made of exceptional case funding, and funding has been provided where it is required by law under European Union legislation or European convention on human rights regulations.
The Minister explains how legal aid is still available in some of the most urgent situations—for example, when someone’s house is at risk of repossession. However, does that not raise the question, why wait until we get to that stage? Why not provide legal aid earlier, so that people do not get into that mess in the first place?
It is important that the hon. Gentleman recognises that there must be some limit, and I will come in due course to how much money is spent. However, his criticism is ironic, given that he admitted in his speech that there is less expenditure per capita in Scotland than in England and Wales.
The hon. Gentleman did explain the reasons for that, but I have to say that the facts speak for themselves. He should not try to explain away the fact that there is less expenditure per capita in Scotland than in England and Wales—it is easy to be disingenuous in explaining things away. As I will explain later, the fact is that the legal aid budget for England and Wales is one of the largest in the world.
The Minister misses the two key points I made in my speech about per capita spend. First, it is not fair just to compare legal aid spending per capita; we have to look at justice spending overall. Secondly—this is a matter of fact, not explaining things away—the higher per capita spend in England and Wales is a result of things such as the larger number of expensive fraud cases prosecuted south of the border. The proportion of people eligible for civil legal aid in Scotland is about 75%—well in excess of that in England and Wales. The Minister must also bear it in mind that the financial eligibility rules are more generous and the number of legal cases covered is far broader. He should try to learn lessons from the Scottish jurisdiction, so that savings can be made not by removing all sorts of cases and people from the scope of legal aid, but by achieving efficiencies in the system and other changes.
I would simply say that the hon. Gentleman should look at some of the cases in England and Wales. He will find that some of the fraud cases in this jurisdiction are pretty complex. However, I am grateful to him for saying that it is important that we look at matters from an overall perspective. With the best will in the world, some of those who have spoken already have not done so—they have seen legal aid in a narrow confine, rather than from the overall perspective the hon. Gentleman speaks of.
Even after the reforms we have put in place, we still have a very generous legal aid system, compared with other countries. Last year we spent more than £1.6 billion on legal aid, which is about a quarter of the Ministry of Justice’s departmental expenditure. As I said, that is one of the most generous legal aid budgets in the world.
Is it not the case, though, that the Ministry of Justice budget has been cut? Therefore, to boast that the Government are spending that proportion, when the overall amount of money has been reduced, is not really a boast at all.
May I gently tell the hon. Lady that, were it not for the economic mess that the Labour Government left this country in—[Interruption.] Labour Members may well shrug their shoulders, but the reality is that, were it not for the mess they left and their economic mismanagement, we would not have had to take the tough decisions that we are having to take. I will return later to the views the Labour shadow justice team has expressed on the record about whether the cuts should have been made.
During the previous Parliament the coalition Government proposed a civil legal aid residence test, which has been referred to. The Government continue to believe that individuals should have a strong connection to the UK to benefit from our civil legal aid scheme, and intend to implement the residence test following recent success in the courts. I should add that during the previous Parliament the Government were particularly careful to listen to, and take into account, concerns that were raised about the residence test. As a result a number of modifications and exceptions were proposed, including in cases involving particularly vulnerable individuals. We believe that the proposed residence test, with specific exceptions for vulnerable groups, is both fair and appropriate. It has to be right that when British taxpayers’ money is being used for legal aid, the recipient of the legal aid should have a strong connection to our country.
Will the Minister kindly explain how the residence test will work in practice?
Let us say that a solicitor is taking instructions from a client. What evidence will be needed to prove habitual residence in the United Kingdom?
The hon. Gentleman is an experienced barrister and an experienced politician. He will appreciate that the function of this House is to put policy into implementation, by ensuring that it becomes law. The practical process will need to be thought out—[Hon. Members: “Ah!”]—as is the case with every other measure introduced by the present and previous Governments, and during the 13 years when the hon. Gentleman’s party was in government, and even before that. That is something that will be dealt with and resolved.
The hon. Member for Strangford (Jim Shannon), for whom I have huge respect and regard, spoke passionately; but he will of course be aware that the matter is a devolved one. I wish him well in his dealings with David Ford, with whom I too have had dealings. To the extent that it will help, I will certainly tell him the next time I see him that the hon. Gentleman was speaking passionately and would like him to give a sympathetic ear when he raises the issue. The hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) will appreciate that, again, the issue is a devolved one; but he has put his views on record—including in our little dialogue during my speech.
I am grateful to my hon. Friend the Member for Warrington South (David Mowat) for bringing a realistic perspective to the debate, and for pointing out the reality of the situation. He repeatedly asked the shadow Justice Minister which of the cuts that we have made his party would reverse. I am not surprised that no reply was forthcoming, because in an interview with The Guardian on 30 January 2015, the former shadow Lord Chancellor, the right hon. Member for Tooting (Sadiq Khan), said:
“I don’t have a magic wand to wave. I can’t commit to reverse the £600m cuts to legal aid made by the Tories and Lib Dems. We will still have to take tough decisions on reducing the deficit.”
However, it was not only the former shadow Justice Secretary who took that view. The person in his team dealing specifically with legal aid, the hon. Member for Hammersmith (Andy Slaughter), was interviewed by John Hyde of The Law Society Gazette on 24 September 2014:
“‘We’re not going to get in a Tardis and go back to before,’ he said. ‘We are in a world where resources are tight and it would not be right to pretend otherwise.’”
The article goes on:
“Slaughter conceded that the Labour party would have been forced to make cuts to family law funding and promote mediation as a cheaper option. He added that a Labour government would seek to promote and improve mediation services on offer.”
He is quoted as saying:
“‘We are going to be honest about the tightness of resources—we can’t tackle everything immediately and other elements”
of public spending
“will have a higher place in the queue.’”
I want to ask the Minister: does he support the principle of mediation?
The hon. Lady seeks to justify the fact that her party says it will not make cuts reversals of £600 million by saying, “There you are.” Of course we support mediation. In fact we have said that in family cases where there are divorces, rather than the two separating parties engaging solicitors and then barristers, and then going to court—all paid for by the taxpayer—it is far better for them to sit around a table, trying to have a constructive dialogue with mediation. That way of reaching a solution is preferable.
Given that the shadow team has said it would not make any cuts, perhaps its members could reflect on whether the next time one of them speaks they might be supportive of our proposals, rather than simply saying, “Don’t reduce.”
Will the Minister concede at least that the leader of the Labour party has set up the Bach commission, to look at the issue of access to justice? It would be constructive for Ministers at least to acknowledge that. It is true that my colleagues said previously that they could not just wave a magic wand—of course not; but some of the cuts were badly made and chaotic. Areas—swathes—were taken out of the scope of legal aid, with the consequence that the most vulnerable people suffered; and the reality was that that did not really save money.
I refer the hon. Gentleman to the comments I just made—that his party’s shadow team said it would not reverse any of the cuts. That kind of contradicts what he says; but as far as Willy Bach is concerned—and he is a man for whom I have much respect—I wish him well with his commission. The hon. Member for Kingston upon Hull East (Karl Turner) will be aware that we have said there will be a review of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 three to five years from its implementation. That will be a thorough review in relation to the way forward.
I want to mention some other points made in the debate. The hon. Member for Aberavon referred to some research conducted by Rights of Women, showing that 38% or 39% of women do not have the evidence needed to apply for legal aid. That research was based on responses from 61 people, which I hope even the hon. Gentleman will agree is a small sample—much smaller than researchers would ordinarily use to generalise across the wider population.
There is much debate about the amount of work available and the number of lawyers around to do it. The Law Society has itself accepted that there are far too many people chasing too little criminal work. We must recognise that the legal profession needs to take a wider look—not just at legal aid—at how things are going. In a relatively short time the structure of the legal profession has changed. There was a time when there were simply solicitors, barristers and legal executives; but now barristers in particular face competition from solicitors who have higher rights of audience than previously. There are more people wanting to qualify as barristers, as well. Alternative business structures are coming on the scene. That means that more and more people are chasing the same amount of work.
The point is not that there is not sufficient work for barristers to do, but that there is no legal aid available to enable people who need legal advice to go to a lawyer and get help. We have more people going to prison than for many years, and more people going into the criminal justice system. There is plenty of work; it is just that those people cannot afford anyone to represent them.
Perhaps the hon. Lady missed the point when I said that we have one of the largest legal aid budgets in the world, at £1.6 billion. I would say that that is capable of buying a substantial amount of legal aid assistance and advocacy for people. I go back to the comment from the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East about the importance of looking at matters in the round, from a broader perspective.
Much has been said about employment tribunal fees and the fact that people are not using employment tribunals any more. There should be some recognition of the ACAS early conciliation process, which did not exist before but has dealt with some 83,000 cases in the 12 months since it was introduced. There should also be some recognition of the fact that the economy is improving, and that more jobs are being created out there. It is always the case, looking back at the trend of such things, that there is less demand for employment tribunals when the economy is improving. People should not overlook the fact that more than 80,000 cases have been dealt with by ACAS’s early conciliation process. Furthermore, looking at matters in the round, let us not forget that this Government are committed to spending some £700 million on reforming the courts system, which means there will be a better way of accessing justice than exists at the moment.
Coming back to the words in the title of this debate, we very much hope that the reforms will particularly assist vulnerable people, including victims, witnesses and others. The reforms will mean, for example, that those people do not have to attend a court to give evidence, but can instead go to a convenient location close to them and give evidence by video conferencing. We will also make more use of modern technology in a broader perspective. We already have prisoners giving evidence from prisons, which avoids getting caught up in traffic jams and all the additional security costs that taking them to court would entail.
Given the changes that are being introduced and the impact they will have in real time, does the Minister not agree that waiting for three to five years before doing a review of LASPO is simply evidence of being asleep at the wheel? A review of LASPO needs to be brought forward in a far shorter timeframe.
It is important to recognise that LASPO made a huge change to the whole structure of the legal aid system. It is important that we ensure the changes have sufficient time to bed in, in order to make a proper assessment of whether they have worked. As it happens, the three to five year period is more or less approaching us, and we will do the review in 2016 to 2018, but it is important that we allow such fundamental changes to take place.
Can the Minister tell us whether the review of LASPO will be in 2016 or is likely to be at the end of the period?
I am afraid I cannot tell the hon. Lady when the review will be. Clearly, we are giving much thought to that. We want to get it right and to ensure that the changes we have made already have the effect we wanted. If necessary, we will make changes. As I say, the timing of the review is yet to be decided, but we are committed to doing it and will do so.
I am mindful that the hon. Member for Aberavon must have an opportunity to wind up, so I will simply conclude by saying that I hope hon. Members will appreciate this Government’s commitment to a one nation justice system that safeguards and protects the vulnerable, supported by a strong and sustainable legal aid system to provide advice and support for the highest priority cases. I am grateful to the hon. Member for Aberavon for securing the debate and to all other Members who have spoken.