Windrush Compensation Scheme (Expenditure) Bill

Baroness Williams of Trafford Excerpts

3rd reading & 2nd reading & Committee negatived & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard) & Committee negatived (Hansard): House of Lords
Tuesday 21st April 2020 Lords Chamber

Moved by

[Baroness Williams of Trafford]

That the Bill be now read a second time.

[The Minister of State, Home Office (Baroness Williams of Trafford) (Con)]

My Lords, I am a bit out of practice —I am so used to doing things on Zoom now—but I am very pleased to be able to move that the Bill be now read a Second Time.

The whole country was shocked by the unacceptable mistreatment of some members of the Windrush generation by successive Governments. As the Home Secretary said on publication of the Windrush Lessons Learned Review, despite the diverse and open nature of our country, too many people still feel that they may be treated differently because of who they are or where their parents came from. Many noble Lords have spoken passionately and movingly about the contributions made by the Windrush generation, men and women who came to the United Kingdom to rebuild the country after the Second World War. They built their lives and their home in Britain, and they have done so much for this country—their country. They worked hard, paid their taxes and contributed to our communities, our culture and our society. That is why we were all so shocked to discover that they and their families were subject to such insensitive treatment. Lives were ruined and families were torn apart.

This Government recognise that no amount of money can undo the injustice some members of the Windrush generation have faced or the hardship they have suffered. However, it is only right that all those who have been affected are offered proper compensation. This Bill, brought to this House as a money Bill, is therefore a vital part of delivering the Windrush compensation scheme. The compensation scheme was launched in April 2019. It includes a specific apology to each person, issued with the award of compensation. Most importantly, it allows those who have suffered to avoid court proceedings in pursuit of justice. There are 13 categories under which people can claim compensation, including “Impact on life” and “Discretionary”, and while some categories of award have an upper limit, there is no overall cap on the amount an individual can receive in compensation under the scheme.

Our priority has been to ensure that payments are made as quickly as possible. The first payment was made last July, within four months of the scheme being launched. To the end of December we had made 36 payments totalling £62,198, and many more payments have been made since then. However, some cases are more complex than others and it is right that we take the time to ensure these are dealt with properly. Where we can resolve part of a claim more quickly than other parts, we are making interim payments to ensure claimants receive their awards as quickly as possible, although we recognise the strength of feeling that we need to do all we can to ensure many more receive what they are due quickly.

Evidential requirements have been designed to be straightforward and not too onerous. Claim forms have been designed to be simple and easy to understand and were tested with users, so legal assistance is not required to complete an application. However, the Home Office has a contract with Citizens Advice to provide independent advice and support to claimants in the UK and overseas should they need it, and yesterday we announced the launch of a tender to select an organisation to provide this support to claimants for the duration of the scheme. The tender will be open from 22 April and close on 1 July and interested organisations can find out how to access the relevant documents on GOV.UK. The design of the scheme was informed by a public consultation, and the advice of Martin Forde QC, the independent adviser to the scheme. I thank Martin Forde QC for his ongoing support and invaluable insight.

We have listened, and will continue to listen, to feedback on the scheme to make sure it is delivering for those it is designed to compensate. Details of the scheme are set out in non-statutory rules, which gives us the flexibility to amend them where appropriate. For example, we announced earlier this year that we are extending the duration of the scheme by a further two years and changing the rules so people will no longer be expected to show they took immediate steps to resolve their status. This change means that some people may qualify for higher awards, particularly where it relates to loss of employment.

A review process for those dissatisfied with their compensation offer has also been established, first through an internal Home Office review and, if the claimant is still dissatisfied, through an independent review by the adjudicator’s office. Information supplied as part of a claim for compensation will not be used for enforcement action.

My department continues to work extensively with communities and stakeholders to raise awareness of both the Windrush compensation scheme and the Windrush scheme. The Home Office has attended or hosted over 100 engagement and outreach events and surgeries throughout the UK, but there is more to do to fulfil our commitment to those affected. That is why we announced last month a £500,000 community fund to enable grass-roots organisations to promote these schemes, including provisions for advice surgeries, the design of which will be shaped by community stakeholders, and a national communications campaign to raise awareness and ensure that people know how to apply.

No compensation can ever hope to undo the injustice of being told that you are not welcome in your homeland, but we hope that the Windrush compensation scheme can go some way to righting the wrongs of the past, in particular towards easing the financial burden that some endured as a result. That is why, even in the midst of the current circumstances, we have this Bill before us to fulfil our commitment to the Windrush generation and to discharge our financial duties to Parliament responsibly. Payments are currently made under a ministerial direction issued in July last year, but the Bill will ensure that expenditure under the scheme meets the expectation of financial regularity relating to both the 1932 concordat between the Public Accounts Committee and the Treasury, and the principles of Managing Public Money.

The Bill received support in the Commons, where it passed quickly without amendment. We want swiftly to grant Parliament the necessary financial authority for expenditure under the compensation scheme, and I hope noble Lords will give the Bill the support it needs to avoid any further uncertainty for members of the Windrush generation. I therefore commend the Bill to the House.

--- Later in debate ---

[Baroness Williams of Trafford]

My Lords, I thank the noble Lord, Lord Kennedy, and everyone who has spoken in this debate. Several things came to mind as I heard the various speakers.

First, my noble friend Lord Taylor of Warwick commented on “no blacks, no Irish, no dogs”. Were that still in force—the noble Lord, Lord Kennedy, and I were babies then—half the speakers taking part in this debate would not be allowed in your Lordships’ House. It was lovely to hear the noble Baroness, Lady Watkins, on the back of my noble friend’s point, talk about some of her inspirations as a student nurse.

I also support the point made by the noble Lord, Lord Newby, and the noble Baroness, Lady Bull, about our BME friends who have worked in the fight against Covid-19, many of whom have died in the fight. Many people in this country owe them their lives, and we are eternally grateful to them.

This is rightly a money Bill, because it focuses on matters of financial regularity. The Home Secretary has said that there are still people out there who need our help but whom we have not yet reached—many noble Lords have referred to them today. That is why we have confirmed that we will launch an expanded cross-government Windrush working group to develop programmes to improve the lives of those affected. That might be through employment support programmes, dedicated mental health support or specialist education and training schemes. We will continue to listen to stakeholders as we take forward establishing this group.

Most noble Lords talked about the scope of the scheme. My noble friend Lady Verma, who cannot be here today because she is self-isolating, has asked me to talk about certain aspects of it. The Windrush Compensation Scheme is not limited to men and women who originally came to the UK from the Caribbean Commonwealth and have struggled to demonstrate their lawful status. It is open to Commonwealth citizens who arrived in the UK before 1 January 1973 and who are lawfully here because they have a right of abode or settled status or are now British citizens. It is open also to Commonwealth citizens overseas who settled in the UK before 1 January 1973 and to any person of any nationality who arrived in the UK before 31 December 1988 and is lawfully here because they have a right of abode or settled status or are now a British citizen. The scheme is open also to the children and grandchildren of Commonwealth citizens in certain circumstances, to the estates of those who are now deceased but who would have otherwise been eligible to claim compensation, and to close family members of eligible claimants where there is evidence of certain direct financial losses or significant impact on their life. The noble Lord, Lord Hastings, asked about mental health. Mental health would be covered by this aspect of impact on life.

Data published by the department on 27 February demonstrates that claims are being made by individuals of a range of nationalities, spanning the Commonwealth beyond the Caribbean. The scheme covers a broad range of losses: there are 13 categories under which claims can be made, such as impact on life, which I have just mentioned. There is also a “discretionary” category, which will enable people to claim for other losses not necessarily identified within the scheme. We want to be as flexible about this as possible.

The Government are committed to making sure that everyone who is due compensation can receive it. In designing the scheme, 650 responses to a call for evidence and nearly 1,500 responses to a public consultation informed our approach. We held several public events. Martin Forde QC, who is an experienced barrister on all aspects of health law, was appointed by the previous Home Secretary to advise on the design of the compensation scheme. We have made the evidential threshold as low as possible and will work with claimants to support them in providing as much information as possible to support their claim. However, it is important that we spend public money appropriately and therefore a minimum level of information and evidence is required. Where awards are for actual losses, it is right that we seek to obtain an appropriate level of assurance that those losses were incurred so as to fulfil our duty properly to manage public money.

The aim of this approach is to reimburse in full those who can evidence actual losses. For those who cannot meet the evidential requirements for an award based on actual loss, a tariff award may be made. Our approach is comparable with employment tribunals’ approach for calculating loss of earnings, where an award to cover actual losses generally would be paid where the claimant was able sufficiently to evidence what those could have been.

We have always said that we will listen to feedback on how the scheme is operating and continue to make improvements where they are identified to make sure that it is delivering for those whom it is designed to compensate. The changes announced by this Government earlier this year demonstrate our commitment to do this and to build on changes made to the rules last October.

I can understand concerns that the department which caused the issues facing these individuals should be the one deciding whether they are eligible to receive compensation. I hope that I can give some comfort on this. The Home Office is determined to learn lessons and right the wrongs experienced by the Windrush generation, and the compensation team is working hard to ensure that people get the compensation they deserve. As the Home Secretary said in her Statement on Wendy Williams’ Windrush Lessons Learned Review, we will continue to do everything possible to ensure that the Home Office protects, supports and listens to every single part of the community it serves.

On the operation of the compensation scheme, moving it from the Home Office would risk significantly delaying payments to claimants. I am sure that that is not what anyone would want. The first stage in deciding a claim for compensation is to confirm an individual’s identity and eligibility, and that is linked to the immigration status of an individual. It would be difficult to decouple this from the Home Office without increasing the time taken to process an individual’s claim and issue payments.

We have established an independent review process for those dissatisfied with their compensation offer. The independent review is conducted by the HMRC adjudicator, a non-departmental public body that is completely independent from the Home Office and can look at, among other things, whether the department has followed its policies and the use of discretion by the Windrush compensation team.

Lastly, as an independent adviser to the scheme, Martin Forde continues to provide external scrutiny and challenge on its operation and implementation, and we continue to listen and respond to feedback received from stakeholders to ensure that the scheme is operating effectively for claimants.

The noble Lords, Lord Newby and Lord Taylor, and others, spoke about funding, the impact assessment, award tariffs and caps on the scheme. I say again that the Government are making sure that everyone who is due compensation can receive it. The Windrush compensation scheme awards compensation according to both actual losses and tariff-based awards. While some categories of awards have an upper limit, there is no overall cap on the amount that an individual can receive in compensation under the scheme. There is also an uncapped discretionary category, which is for significant impact or loss not necessarily identified within the scheme.

Noble Lords referred to the updated impact assessment. Published in February, it outlines the Home Office estimates that the Windrush compensation scheme will cost between £90 million and £250 million, based on 11,500 eligible claims. That answers the question from the noble Lord, Lord Taylor of Warwick.

Other noble Lords, including the noble Lord, Lord Newby, talked about the sheer breadth and extent of the spectrum of compensation. It has actually reduced since the previous impact assessment was published, due to lower than anticipated claims to date. However, there remains a high degree of uncertainty around the likely volume of compensation claims and the level of claims against the different categories. As a result, the impact assessment uses a number of different volume scenarios with a wide range of possible costs. The department will continue to review estimates as more payments are made, but I want to make it clear that there is no cap on the amount of compensation we will pay out to individuals.

The noble Baroness, Lady Watkins, asked about data on the number of applicants. There will be a quarterly update on GOV.UK. Given that the last update was in December, I am expecting one fairly soon.

The noble Lord, Lord Newby, talked about the number of payments made and the time to process claims, and I think that his challenge is absolutely fair. Up to the end of December, 36 payments had been made, totalling £62,198. We aim to award compensation as quickly as possible, but it does take time to process each claim, and it will depend on the complexity of individual cases. It is right that we take the time to ensure that they are dealt with properly. Where we can resolve part of a claim more quickly than other parts, we are making interim payments to ensure that claimants receive their awards as quickly as possible. Many of the payments made so far are interim payments, which means that claimants may receive further awards later.

The noble Lord, Lord Newby, and the noble Baroness, Lady Watkins, asked what proportion of claimants are successful. The latest data, released in February, to the end of December 2019, show that nobody had been rejected on eligibility grounds. There were some zero awards to eligible people who had not suffered financial loss or detriment.

The noble Baroness, Lady Bennett of Manor Castle, made a very good point about people with no recourse to public funds. Many of the measures that Her Majesty’s Government have put in place will support such people—for example, the coronavirus job retention scheme, the self-employment scheme and statutory sick pay are not public funds and are available to all. The Government have given more than £3.2 billion to local authorities to help them support those in need. Of course, for people with no recourse to public funds, that is quite often where the money comes from. Rental and mortgage protections are also available and people on human rights routes can apply to have their “no recourse to public funds” status lifted if their financial circumstances change.

On the length of time, just as a comparator, the Criminal Injuries Compensation Authority website suggests that claims under that scheme take 12 to 18 months to conclude, but that is not a reason to justify this. I recognise the strength of feeling, and we are working very hard to ensure that many more receive what they are due quickly. To the end of December, as I have said, no claims had been rejected. The noble Lords, Lord Newby, Lord Kennedy and Lord Hastings, made very good points about communications efforts. Of course, those efforts are not just by way of a quick tweet, as the noble Lord said; they are across the world and we are working extensively with communities and stakeholders to raise awareness of both the Windrush compensation scheme and the Windrush scheme.

The Home Office has attended or hosted more than 100 engagement and outreach events and surgeries throughout the UK, but there is definitely more to do to fulfil our commitment to those affected. It is essential that we engage with people directly. That is why last month we announced the £500,000 community fund that the noble Lord, Lord Hastings, mentioned, to enable grass-roots organisations to promote these schemes, including provision for advice services. We are committed to working with members of the community to shape the design and principles of the fund. That is why we intend to work with stakeholders to co-design the fund.

One thing that the compensation scheme covers under quite a broad category—I have already alluded to it—is the impact on life. This category is specifically designed to cover non-financial impacts that individuals might have faced as a result of being unable to demonstrate their lawful status; for example, an inability to attend significant family occasions, celebrations or events, or family separation. We have heard awful examples in this House of how that has happened. This category is awarded at a series of levels, with payments ranging from £250 for detriment where the effect on the claimant was fairly short lived, up to £10,000-plus where the effect was profound and likely to be irreversible. The scheme is also open to close family members of eligible claimants who may claim compensation in their own right where they have suffered a loss or impact.

The Government also consider it reasonable to expect that individuals who encountered difficulty evidencing their lawful right to be in the UK would have taken steps to try to resolve this. However, we have listened to feedback from stakeholders and affected individuals, and earlier this year we amended our mitigation policy so that a wider range of circumstances and actions taken by individuals to resolve their immigration status or mitigate losses or impacts are considered when deciding awards. Individuals are no longer expected to show that they took immediate steps to resolve their status, and this was clarified in new guidance published on 5 March. These changes mean that affected individuals may qualify for higher awards, particularly where loss of employment is involved.

The noble Lord, Lord Taylor of Warwick, and others talked about claimant assistance and legal advice. We have designed the compensation scheme to be as clear and simple as possible so that people do not need legal assistance to make a claim. The claim forms have been designed to be simple and easy to use and were tested with users.

Evidential requirements have also been designed to be straightforward and not too onerous. However, for those who want or need support to make a claim, the Home Office has funded Citizens Advice to provide free independent advice and support. This is available to individuals at home and overseas. As I said, yesterday we launched the tender to select an organisation to provide free independent advice and support to claimants for the scheme’s duration.

The noble Lord, Lord Newby, mentioned the length of the form. Claimants need to fill in only the bits of the form that are applicable to them. While it might seem like a long form, they have to fill in only the pieces that refer to them.

Many noble Lords—the noble Lords, Lord Newby and Lord Kennedy, and the noble Baroness, Lady Watkins, in particular—mentioned the duration of the scheme. We want to make sure that everyone who wishes to make a claim can do so. That is why we announced earlier this year that we are extending the duration of the scheme until 2023 and why we are doing all we can to raise awareness of it. However, as the Immigration Minister said at Second Reading in the other place:

“There is a balance to be struck between having a date far enough in the future to enable people to feel confident that they have time to make their claim, but soon enough to encourage people to put in their claim.”—[Official Report, Commons, 10/2/20; col. 668.]


We felt that the two-year extension provides this, but the option remains to further extend the duration if it is required. The rules allow for an extension.

Noble Lords also talked about destitution, immediate need and significant hardship. Where people are in immediate need, we have measures in place to provide that extra support. The task force has a dedicated vulnerable persons team to provide help and advice where safeguarding and vulnerability issues are identified. To the end of February 2020, the vulnerable persons team has provided support to nearly 1,400 individuals. We have a fast-track service with the Department for Work and Pensions to confirm status and residence and to arrange access to benefits. We can also help with securing accommodation for those identified as homeless with local authorities. To provide support to members of the Windrush generation who have an urgent and exceptional need, we may also be able to consider a payment under the support in urgent and exceptional circumstances policy. To the end of February 2020, 33 payments have been made under that policy. Finally, the Home Office also has an agreement with Citizens Advice to provide bespoke professional advice, including debt advice, to anyone experiencing immediate financial problems.

All noble Lords talked about the Windrush Lessons Learned Review. On 18 March, the Home Secretary received the review from Wendy Williams, and updated Parliament and published the review at the earliest opportunity on 19 March. It makes compelling reading. It makes it clear that some members of this generation suffered terrible injustices spurred by institutional failings spanning successive Governments over several decades, including

“ignorance and thoughtlessness towards the issue of race and the history of the Windrush generation”.

We are truly sorry on behalf of this and previous Governments that people’s trust has been betrayed.

The Home Secretary will bring forward a detailed formal response in the next six months, as Wendy Williams recommended. As noble Lords will recall, she specifically asked the Home Secretary to take time to reflect on this before she responded.

Noble Lords talked extensively about the compliant environment. The previous Home Secretary, my right honourable friend Sajid Javid, said that the words “hostile environment” would no longer be part of the way that the Home Office operated. The Government are absolutely committed to a fair and humane immigration policy which welcomes and celebrates those here legally, deters immigration offending and protects the taxpayer.

The noble Lord, Lord Newby, talked about the right to rent. This was introduced under the coalition Government and was about tackling unscrupulous employers and landlords to protect the vulnerable while also protecting good employers and landlords. It is in the interests of a fair society that those who play by the rules are supported while those who would otherwise be exploited are protected. The noble Lord talked about losing the right-to-rent judgment. We did not actually lose the judgment: the appeal has been allowed and we will await its outcome.

Gosh, I have gone on for 24 minutes, but I am sure that the House will indulge me. The noble Baroness, Lady Bull, asked about the stakeholder advisory group and how many times it has met. The cross-government group announced by the Home Secretary has not yet met because of Covid-19, but the Home Office stakeholder advisory group has met three times and has focused on communications campaigns—engagement and outreach, grass-roots campaigns and the new national campaign—and working on digital outreach options in the light of coronavirus. She also made a comparison with the furlough scheme. It is not really comparable because that scheme is just about employment and this is so much broader than that. The Windrush Compensation Scheme is dealing with people’s lives in the round and a lot of this goes back many years.

I hope I have answered all noble Lords’ questions. I am sorry to have gone on for 25 minutes. I thank all noble Lords and commend the Bill to the House.

Bill read a second time. Committee negatived. Standing Order 46 having been dispensed with, the Bill was read a third time, and passed.