(7 years, 11 months ago)
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It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate my hon. Friend the Member for Wolverhampton South West (Rob Marris) on obtaining the debate. I was going to go quite thoroughly into the subject of employment tribunals, but I feel that there is no need to do that. As an employment lawyer, my hon. Friend dealt with it comprehensively. However, I want to say that I managed a citizens advice bureau where we saw many people who were very reluctant to take action against their employers; any barriers put in the way will deter people from getting what is rightfully theirs. In fact, Citizens Advice recently revealed that 82% of people say the fee increase will deter them from taking a case against their employer.
The statistics bear that out. Why would someone pay £390 for a £200 wage claim when they know that only 49% of claims are paid in full? It is appalling to put another barrier in the way and impose such fees, which appear horrendous. There has been a decrease in claims. I warned when the change was first debated that a decrease would not mean success, but merely that the individuals concerned had given up, and had not gained what they were entitled to. I would be interested to know why people have not pursued ACAS claims. According to evidence from Citizens Advice, 90% of people would consider a reduced fee limit of £50 reasonable and thought that they could perhaps afford that when making a claim. I wonder whether the Minister has looked at the question of reducing the fee.
My hon. Friend the Member for Wolverhampton South West and other hon. Members dealt extremely well with the issue of whiplash. However, I am concerned about the raising of the small claim limits—and that, not whiplash, is what the consultation specifies. Why were workplace injuries included in that? What evidence is there of fraudulent claims against employers? In my experience, it is difficult to encourage people to make a claim even when the employer has been negligent, because they are extremely worried about the possible consequences. When that is coupled with the fact that if someone is unfairly sacked, there is a tribunal fee, I feel that people are beginning to lose faith in the justice system.
I want to mention the advice deserts, particularly in housing law, which my hon. Friend the Member for Wolverhampton South West also covered. Many small providers—including not-for-profit providers—are giving up their contracts as unviable. That has recently happened in one case in my area. Where are people to go about housing issues, such as severe disrepair, that they cannot get dealt with and that are giving them health problems? People can only have a housing claim if their case is at the severe end. How are people to get justice and avoid further illness, which will put more strain on our already overstretched health system, if they cannot get advice at a place they want to go to and can afford to travel to?
There is a risk that the civil legal aid system is becoming unsustainable. Will the Minister commission an independent review into the system’s sustainability? It is at risk of falling over. Even with sufficient providers, the Legal Aid, Sentencing and Punishment of Offenders Act 2012 reduced the possibility of obtaining early advice on housing and family law. Having been the manager of a citizens advice bureau, I cannot stress enough that early advice relieves the pressure on families, who will probably go to other services if they do not get it, which means they will put pressure on local authorities, housing associations and medical professionals. That is why it saves money. In the case of welfare benefits, £8.80 is saved for every case of early advice; in the case of housing advice, more than £5 is saved. Leaving everything to the last minute is simply the wrong way to deal with people’s problems, not only for them and their families, but for the state.
We must ensure that ordinary people are given an even chance in the justice system. Where is the equality of arms that solicitors always talk about? We need to ensure that people can receive the compensation they are entitled to, and timely advice—the right advice as to whether their claim is viable. I have often found that telling someone at an early stage that they did not have a case prevented them from going as a litigant in person. If they cannot get such early advice, they will be clogging up the court system. Many of the most recent reforms have had the opposite effect and deterred people from getting what they are entitled to. I agree with the hon. Member for Croydon South (Chris Philp) that we need to stop the cold calling. If the proposed changes to the small claims limit are included with the range of proposals, in addition to what has already happened to take access to justice away from ordinary people, I do not believe that people will any longer have faith that ours is a fair and just society.
We are making good time. I invite Stuart McDonald to speak from the Front Bench on behalf of the SNP.
The hon. Gentleman is correct. I put it to hon. Members that the real purpose of introducing employment tribunal fees was not to reduce vexatious claims, but to reduce claims full stop. Employment tribunals received about 60,000 cases in the year before fees were introduced, but that fell to below 20,000 the year after. As my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) indicated, that is not because of a reduction in illegal or unfair treatment by employers in that time—if only!
In June 2016, the Justice Committee released its report on court and tribunal fees, which complained that it was
“unacceptable that the Government has not reported the results of its review one year after it began and six months after the Government said it would be completed.”
Unbelievably, seven months later, the Government continue to sit on a review of the fees. We can only suppose what the reason for that is, but perhaps the Minister will enlighten us.
LASPO, which was enacted by the coalition Government, removed most social welfare law cases from eligibility for legal aid assistance. Those seeking assistance for debt advice, housing—apart from in homelessness cases—and welfare benefits advice were left with few places to turn, as my hon. Friend the Member for Makerfield knows from her experience running a citizens advice bureau. The barrier that has been put up in such cases has hurt some of the most vulnerable people in our society. The lack of benefits advice is of particular concern because many appeals against the Department for Work and Pensions succeed. Between December 2014 and June 2015, 53% of those who appealed “fit to work” decisions had them reversed. Removing advice on such cases risks people missing out on benefits to which they are eligible.
Last year, the Law Society launched its campaign to end legal aid deserts—areas of the country in which legal aid advice for housing cases is disappearing. In a Westminster Hall debate on 30 November 2016, the Minister denied that such legal aid deserts exist. I wonder whether he has told the Law Society that its research is wrong. In July last year, Young Legal Aid Lawyers, the Legal Action Group and the Legal Aid Practitioners Group wrote to the Prime Minister, highlighting the huge drop in civil legal aid cases since LASPO. In 2012-13, before LASPO, 724,243 civil law cases were publicly funded, but in 2015-16 there were just 258,460. They described that, correctly in my view, as
“a picture of justice denied”.
Last week, the Justice Secretary’s own actions confirmed the need for a review. LASPO removed most private family law matters from the scope of legal aid, which naturally led to an increase in people representing themselves, as has been described. The increased number of litigants in person led in turn to violent and abusive people cross-examining their victims—usually their former partners—in court. Recently, the senior family court judge, Sir James Munby, said:
“I have been raising since 2014 the pressing need to reform the way in which vulnerable people give evidence in family proceedings. I have made clear my view that the family justice system lags woefully behind the criminal justice system.”
Well, last week that reform was promised: apparently the Justice Secretary will review the situation. That is as good as an admission that the legal aid reforms to the family courts have caused the problem that now needs a solution. Although the Government’s initiative would be a step in the right direction and provide some measure of comfort to victims of domestic violence, it is no substitute for both parties in family proceedings having representation.
When the coalition Government passed LASPO, they committed to reviewing its effects in three to five years, and we are now well within that timetable. The review ought to have begun a long time ago—the words of the Lord Chief Justice last January, which I quoted earlier, make that clear. However, that is not the only barrier to access to justice that has been erected and maintained by the Government.
Does my hon. Friend agree that the review needs to take place urgently, because the impact assessment of LASPO said that it would disproportionately affect women and the disabled, but that that was a price worth paying?
(8 years, 7 months ago)
Commons ChamberThe Chair of the Justice Committee is absolutely right, as is the hon. Member for Cardiff Central (Jo Stevens), to point out that it is simply not good enough that prisoners are in their cells for up to 22 or 23 hours at a time. Time out of cell is a key indicator of how effectively a prison is run—it is not the only one, but it is really important. My hon. Friend is also absolutely right to point out that when we think about new prison design we should concentrate on the time out of cell. I was privileged to visit a prison just outside Berlin where prisoners spend far longer out of their cells, either at work or in education, than in most institutions in this country. We can learn a great deal from the Germans.
4. What assessment he has made of the potential effect of planned changes to personal injury law and whiplash claims on access to justice.
The Government remain concerned about the number and cost of whiplash claims, and in particular the risk that unmeritorious claims push up the cost of insurance for customers. New proposals have been announced. We will consult on them in due course, and they will be accompanied by an impact assessment.
There still appears to be no independent verification of the fraud culture and pandemic of claims cited in the autumn statement as the reason to raise the small claims limit for personal injury. In fact, not one motor insurer even mentioned fraud as a material risk when reporting their annual returns to the stock market. What independent evidence does the Minister have of a fraud culture? Would it not be more effective to legislate to stop the ambulance-chasing claims management companies making unsolicited calls, rather than denying justice to those who have been injured through no fault of their own?
We should address both angles. The Chancellor has already announced proposals to remove the right to claim damages for pain and suffering for very minor claims and to increase the small claims limit to £5,000. That is important, as it will help us cut the cost of resolving cases. As I said, we will consult on the reforms, but, critically, they will save the insurance industry £1 billion annually. The industry is committed to passing those savings on to customers, which will reduce premiums by £50.
(8 years, 9 months ago)
Commons ChamberThe hon. Gentleman can tell his prison officers that all violence within prison is a crime. We strive to eradicate it, and it is wholly unacceptable. We take it very, very seriously. As I told the hon. Member for Warrington North (Helen Jones) a moment ago, we appointed 2,250 extra prison officers last year—a net increase of 440—and we will carry on recruiting. Really importantly, we will be testing for new psychoactive substances throughout every prison next month, and that will make a significant difference to the important issues that he raises.
15. What steps he plans to take to ensure access to justice does not depend on the ability to pay.
The Government’s programme of reform aims to deliver faster and fairer justice for all citizens, by speeding up decision-making, giving parties the ability to submit and consider information online, and considering issues far more proportionately. We have committed to invest in the technology that will underpin that.
The introduction of employment tribunal fees has caused the number of new cases to plummet. Sex discrimination cases are down by 80% and equal pay cases by 84%. Will the recently announced review publish an impact assessment on the introduction of those fees, and say whether it has disproportionately affected the number of women bringing forward cases to tribunal?
The hon. Lady raises some important points. On the employment tribunal, she should consider the alternative facilities that are available. For example, the early conciliation service has reported that, in the first 12 months, 83,000 people used its services, and that the vast majority were happy with the services that they received.
(8 years, 11 months ago)
Commons ChamberI could not agree more with the hon. Gentleman and I will touch on that point later.
The 2011 Act made women wait an extra year to a year and a half to claim their state pension. However, we have to remember and take into account the context which is women did not know about the initial 1995 Act. We have a situation where there is a whole host of women who read about the 2011 Act and went, “Oh, God. Okay, I am going to have to be working an extra two years. I’d better start making plans. Oh no, wait a minute, I’m working till I’m 66. Where did that come from?” There is a whole host of women who have been given a double whammy. The Government have not and are not giving women enough time to prepare alternative plans. There have to be better transitional arrangements.
The Conservative ethos is to encourage independence and responsible choice, but how can that happen if we do not give people the time to make the responsible choices? By continuing this policy at such a high speed, the Government are knowingly and deliberately placing another burden on women who are already trying to deal with consequences of an Act passed 21 years ago that they have only now found out about. To put that into context, I am 21—that’s how old this is.
One of my constituents told me that she began working at 17 and chose to pay the full rate of national insurance on the basis that she would retire at 60. Other options were available to her, but she said, “I want to retire at 60 so I’ll pay the price, through national insurance, my whole working life.” She put it in a way that I think is a very good and accurate description of what is happening. She has now found out that she is not retiring until she is 66. She says:
“The coalition and this present Government have stripped us of our pensions with no prior warning and with no regard to the contract we all entered when we were 17.”
She uses the term “contract”. That is an important point, because pensions are not benefits; they are a contract. People enter into them on the basis that if they pay X amount of national insurance they will receive Y at a certain age.
That is also the case for my constituent who at 57-and-a-half realised she would no longer be able to retire at 60. She is a care worker doing an extremely physically demanding job. She now has to work until she is 66. She has had a low income throughout her life working as a care worker and now has to carry on doing this demanding job for a further six years.
I could not agree more. Every Member, if they contact their constituents, will recognise that this problem spreads across the whole of the UK and affects women of all classes, from different backgrounds and with different jobs.
In criminal law, if we want to send someone to jail, it has to be agreed beforehand how long that person is going away for, and if that needs to change, there are appropriate measures to deal with it. In civil law, if we enter into a contract, there are terms and conditions stating, “If you want to change this contract or break out of it, there will be a price to pay.” Why are pensions any different? This is a contract people have entered into, but it is now being broken and nothing is being done to allow them to transition. These women have done exactly what was asked of them—they have worked hard all their lives and paid their national insurance—but it is now being taken from them behind their backs.
What is worse, if the Government choose to continue with the policy, they will be completely ignoring the years of gender inequality these women have lived through. Another constituent of mine, Kathleen Birney, explains that she worked until her children came along. Her husband could no longer work because of a disability, but she was determined not to depend on state benefits, so she studied and became a primary school teacher. She cared for her husband and her children, and she never claimed a penny. She has based all her life plans and financial plans on the basis that she would be retiring at 60. She has now found out that she cannot retire until she is 66. Unpaid carers are the unsung heroes of our economy. They have saved consecutive Governments an absolute fortune time and again. Sadly, women in our society have had to live with years of performing gender roles, meaning that the vast majority of unpaid carers are women. They are the type of people this policy is hitting: people who cannot afford to go another six years without a pension. Some women, such as Kathleen, are being left penniless. They have nothing and are being forced to turn to the state for benefits. How does that fit into the logic of reducing public spending?
We will most likely hear the Government say, “It’s all okay because women will do better under the new single-tier state pension”, but there is a campaign called CARIISP—the collection against real inequality and injustice of the state pension—which is a collection of women rightly pointing out that a person only receives the higher rate of the new pension if they have paid 35 years of national insurance, but many women have not had the chance to build up that level of contribution. It is a separate issue; I mention it, first, to raise awareness and, secondly, in the hope it will earn a debate on its own merits.
The Government have said:
“The policy decision to increase women’s state pension age is designed to remove the inequality between men and women.”
That is a strange definition of equality: I am being shafted and short-changed purely because of when I was born and because I am a woman. That is not my definition of equality.
To conclude, there are two problems at the heart of this. First, there is the poor communication over the years, but all we can do is learn from that. I accept that the 1995 Act has happened, and all we can do is reflect on the mistakes made and not repeat them. The second issue, however, is the 2011 Act and the rapid changes the coalition and this Government have made. We can do something about that. Unlike most things that come from this Government—I mean this sincerely—I do not believe that this policy was vindictive or done in the knowledge that it would hurt people. I genuinely think we have ended up in this mess purely because of mistake after mistake, but any mess can be cleared up. If they continue with this policy, however, in the full knowledge of everything that has been and will be outlined, it will become vindictive and deliberate, and it will be done in the full knowledge that people will be hurt.
I understand that we have to work in tandem and with responsibility when it comes to the economy, but that does not mean punishing people who are about to retire. Every topic we speak about in this Chamber comes down to: “Where are you gonna find the money?” I understand that, but the answer is always austerity, no matter how brutal or who it affects. In this Chamber since I was elected we have had a go at people on low wages, the disabled and women, and now we are having a go at pensioners. We can afford to send airstrikes to Syria and to pay for nuclear weapons, but we cannot afford to look after our pensioners? I just do not buy it. The women up in the Gallery right now did not cause the financial crash, they are not responsible for the state of our economy and they did not make the irresponsible decisions that got us here. I understand the question, “Where are you gonna find the money?”, but I refuse to accept or believe that it has to come out of the pensions of older women.