Crime and Policing Bill

Baroness D'Souza Excerpts

Wednesday 11th March 2026 Lords Chamber

Moved by

[Baroness D'Souza]

387C: After Clause 161, insert the following new Clause—
“Amendment to the Sentencing Act 2020 to introduce public interest compensation orders(1) The Sentencing Act 2020 is amended as follows.(2) After section 133(b) (compensation orders), insert“, or(c) to make a payment to one or more relevant organisations for public interest or social purposes (“public interest compensation order”).(2) In this Chapter, “relevant organisation” means an organisation listed in Schedule 5A (relevant organisations for public interest compensation orders).”(3) After section 135 (making a compensation order), insert—“135A Public interest compensation orders(1) When convicting a person of a relevant offence, the court shall consider whether to issue a public interest compensation order, and what the terms of that order should be.(2) In this section “relevant offence” means an offence listed in Schedule 5B (relevant offences for public interest compensation orders).(3) The Secretary of State may by order amend the relevant offences listed in Schedule 5B.(4) In determining whether to make a public interest compensation order against an offender, the amount to be paid under such an order, or to which relevant organisations the payments should be made, the court must, in addition to the factor in section 135(3), have regard to—(a) the rights of victims of human rights violations (inside or outside the United Kingdom) to receive effective reparation and remedy,(b) the fact that individuals who are not proven to be direct victims of the offender’s offence may nevertheless be victims of human rights violations to which the offender’s offence is related,(c) the broader impact of the offender’s offence on victims of human rights violations in the United Kingdom or in other countries, (d) where there is a large number of victims of human rights violations to which the offender’s offence is related, the urgency of victims’ needs (which may vary depending on the harms that they have suffered),(e) where the relevant offence is an offence under regulations imposed under the Sanctions and Anti-Money Laundering Act 2018, the purposes of the relevant regulations and any human rights violations arising in connection with conduct that these regulations seek to discourage, and(f) whether it would be appropriate to make another type of compensation order and, if so, whether the offender has sufficient means to pay both orders, as well as the need to prioritise compensation to direct victims of the offender’s offence.(5) If the court considers issuing a public interest compensation order, the court may (but is not required to) ask the Secretary of State to recommend the relevant organisations to which the funds subject to the order should be paid and if the court makes such a request—(a) the Secretary of State shall, within 90 days (the “relevant period”), recommend to the court in writing one or more organisations to which the funds subject to the order should be paid (the “recommendation”) and in doing so, the Secretary of State must have regard to the same factors as under subsection (4) above;(b) the court may issue a public interest compensation order after the earlier of—(i) the court having received a recommendation, and(ii) the relevant period having expired;(c) if a recommendation has been made within the relevant period, the court may take it into account in issuing a public interest compensation order but shall not be bound by it.(6) The court may direct that confiscated funds be paid to a relevant organisation subject to such conditions as it considers appropriate.(7) The Secretary of State may by order amend the organisations listed in Schedule 5A and the Secretary of State shall review the organisations listed in Schedule 5A at least annually.(8) If, under subsection (5) above, the Secretary of State recommends one or more organisations that are not listed in Schedule 5B, the organisations recommended by the Secretary of State shall be considered relevant organisations for the purposes of the public interest compensation order at issue.(9) For the purposes of this section, a court may issue a public interest compensation order regardless of whether there is a direct connection between the offender’s conduct and the harm suffered by the ultimate recipients or beneficiaries of the public interest compensation order.”(4) After Schedule 5 (Breach, revocation and amendment of reparation order), insert the following new Schedule—“Schedule 5ARelevant organisations for public interest compensation ordersThe following organisations—The Trust Fund for Victims, created by the Assembly of States Parties in accordance with article 79 of the Rome Statute of the International Criminal Court.The Register of Damage Caused by the Aggression of the Russian Federation against Ukraine, established within the framework of the Council of Europe by Resolution CM/Res(2023)3, or any successor body or attached fund. The United Nations Voluntary Fund for Victims of Torture, established by the United Nations General Assembly through resolution 36/151 of 16 December 1981.”(5) After Schedule 5A (Relevant organisations for public interest compensation orders), insert the following new Schedule—“Schedule 5BRelevant offences for public interest compensation ordersThe following offences to the extent that they are offences under the law of England and Wales—Offences arising under regulations imposed under the Sanctions and Anti-Money Laundering Act 2018.””Member's explanatory statement
This amendment seeks to amend the Sentencing Act 2020. It would allow the courts to award compensation orders not only to individuals but also for public interest or social purposes, thereby enabling the proceeds of confiscated criminal assets to be more readily used to compensate victims of offences under the UK’s sanctions legislation.

[Baroness D'Souza (CB)]

My Lords, in the absence of the noble Lord, Lord Banner, I shall move the amendment, although my defence of it will be less than perfect, given that I have only just seen it. However, I must first thank the Minister for having kindly organised a meeting between the noble Lord and officials at the Home Office in order to discuss the Bill. That was extremely useful and important.

I support the Bill and am trying to find quickly the reason why I support these amendments. They would enable the courts to award compensation to public interest companies instead of simply to victims. The current mechanism is that, in the case of sanctions in particular, the moneys recovered from sanctions, which can often be substantial, go straight to the Government. Admittedly, it is important that the Government have resources in order to strengthen enforcement mechanisms, but it seems to me somewhat unfair that the victims do not get a look in in terms of compensation when, after all, the sanctions have been devised in order to protect victims and, indeed, reward them. Although we recognise that compensation is not always monetary, it is important that there is official acknowledgement of the wrongs that have been done to them.

The fact that the courts cannot enable the money derived to go to public interest compensation is an anomaly that I think needs to be corrected. One of the reasons for that that the Minister gave in the meeting, which, as I mentioned, he kindly set up, is that it would be difficult to determine who was a victim and what sort of compensation was necessary or just, simply because the number of victims of aggression, particularly in the context of conflict, is huge, wide and difficult to determine. The Government are concerned that the right money goes to the right victims. That is acknowledged, and it is a very important point.

However, Redress, which has drafted many of the amendments on this aspect of the Bill, has pointed out that there already exist relevant organisations that can receive funds for victims, including the Trust Fund for Victims, which was created by the Assembly of States Parties, in accordance with Article 79 of the Rome Statute of the International Criminal Court. There is also the Register of Damage, for damage caused by the aggression of the Russian Federation against Ukraine, established within the framework of the Council of Europe by resolution or any successor body or attached fund. There is also the United Nations Voluntary Fund for Victims of Torture, which was established by the United Nations General Assembly through its resolution of 16 December 1981. It is also worth pointing out the relative ease that Ministers and the Government would have in keeping a register of those organisations that receive compensation funds and monitoring them.

In essence, it seems just and fair that the victims of aggression, particularly in the area of conflict, and those it is eventually agreed should receive compensation, should in fact receive that money; it goes to the Government—the Treasury and other sources within government—in order, as I have said, to strengthen the enforcement mechanisms. I entirely agree with that, but I am not sure that all the money should go there; some of it should be set aside for the victims. Again, I stress that the reason for this is that, although sanctions are set up to retrieve funds meant for the victims, the fact is that the victims do not always get this money. I beg to move.

--- Later in debate ---

[Lord Hanson of Flint (Lab)]

My Lords, I am especially grateful to the noble Baroness, Lady D’Souza, for moving this amendment on behalf of the noble Lord, Lord Banner. I am also grateful to my noble friend Lady Goudie for speaking in support of the noble Baroness.

As the noble Baroness and my noble friend know, I arranged a meeting for the noble Lord, Lord Banner, to discuss these matters with Redress. Both attended, as did other Peers, including the noble Lord, Lord Alton of Liverpool. I set out then, as I did in Committee, the rationale for the Government’s position in relation to these amendments. I should say to my noble friend Lady Goudie that, although today I will restate the Government’s position, which is not to accept the amendments, we always keep these matters under review and will continue to do so.

The compensation of victims is an extremely serious issue and something that we take seriously. Last time out, in Committee, I laid out the UK’s various mechanisms for victim compensation; I will not repeat those now, in the interests of time. In his amendment, the noble Lord, Lord Banner, raises this issue in the context of Russia’s war with Ukraine. I appreciate the continued support of the noble Lord, Lord Clement-Jones, for the approach that has been tabled today, but, if I may, I shall speak to this amendment in the context of where the noble Lord, Lord Banner, was, I think, coming from. I acknowledge the support for the amendment from the noble Lord, Lord Cameron of Lochiel.

The noble Lord, Lord Banner, has spoken to me on many occasions about the need for wider community compensation, rather than just for individuals, in the context of the war in Ukraine. I affirm this Government’s support for Ukraine. Indeed, the UK is already one of Ukraine’s largest supporters and donors, providing significant financial aid alongside working with international partners to support Ukraine as much as possible. The UK has already committed £21.8 billion, of which £13 billion is for military support, £5.3 billion is for non-military support and £3.5 billion is for UKEF cover; there is also an ongoing commitment to provide £3 billion annually either for as long as it takes or until 2030-31. We are also supporting, along with the G7, loans backing profits belonging to Russian sovereign assets in the EU, as well as the interest on those assets being put towards Ukrainian interests.

Therefore, there are a number of issues on which we are fully supportive and where we are using resources to meet the objectives of the noble Lord, Lord Banner. However, I say to him and to those who have spoken in favour of the amendment today that, given the limited number of cases to which these amendments would apply, they would create only a minimal impact on the people of Ukraine. I suggest that it would be better for us, in the initial stages, to focus our efforts on the larger international mechanisms for compensation, in line with our international partners, which provide far greater funds. I have pointed in particular not just to the UK’s direct taxation commitment but to the G7’s $50 billion ERA loan, which is backed by interest generated from Russian sovereign assets in the EU and the UK.

I understand the noble Baroness’s support on this issue. I particularly understand the concern of the noble Lord, Lord Banner, around this matter, as well as his desire to help and support our friends in Ukraine; I completely share that desire. However, following the rationale that I have laid out, I suggest that this would be best done through the current mechanisms of government, not through these amendments. I will keep all matters under review but I feel that these amendments would distract the UK—and, indeed, our partners—from the core principle of supporting Ukraine, particularly in this time of great need. I ask the noble Baroness, Lady D’Souza, to withdraw Amendment 387C.

[Baroness D'Souza (CB)]

My Lords, I thank the Minister as always for his response and for the support that the Government are providing, particularly in Ukraine after the Russian aggression. I still feel, however, that the definitions within the Bill of “victim” and “loss” are too narrow and indirect victims are clearly not eligible. We all know that there are many tragic indirect victims of war crimes. It is very likely that there will be more sanctions to come and that there will be further need for victim compensation. At present, there are 2,500 Russia-targeted sanctions. The Government still retain most of the proceeds of these.

Nevertheless, I hear what the Minister has said about keeping this under review. Given the fact that I do not think these amendments have been properly addressed by me—although they have by the Member opposite and by the Opposition Front Bench—I will not press them. I beg leave to withdraw Amendment 387C.

Amendment 387C withdrawn.