Child Trust Funds

Ed Davey Excerpts

Tuesday 19th March 2024 Westminster Hall

[Ed Davey (Kingston and Surbiton) (LD)]

I pay tribute to the right hon. Member for Horsham (Sir Jeremy Quin) for securing this debate. I agree with everything he said. I hope there can be cross-party agreement today that we need to move forward at long last.

I also pay tribute to Andrew Turner and his family—particularly his son, Mikey—for the work they have done, but I am sure Mr Turner will agree that others have played a big role, including lawyers such as Philip Warford, journalists such as Jessie Hewitson, and Martin Lewis. Financial service companies have shown leadership, and Contact, other charities and families, many of whom are here, have campaigned. Their voices have come together, and I hope that the Ministry of Justice will listen.

I should declare an interest: I have a 16-year-old son, John, who has an undiagnosed neurological problem that means he cannot really walk by himself or talk, and has serious learning disabilities. He will never be able to manage his own personal affairs, let alone financial affairs. Although my wife and I, and many wonderful professionals, work to give him as much independence as possible, there is no way, when he reaches the age of 18, that he will be able to get the money from his child trust fund. I declare an interest, but I hope I have an insight into the issues that families face and the problems they have as carers. Just looking after their children on a day-to-day basis can be quite enough, without having to worry about lots of bureaucratic forms and having to go to the court of protection.

I have been involved in this debate for some time. I met Mr Turner in 2020, and I asked a question at Prime Minister’s questions on 21 October 2020. The then Prime Minister said:

“I will do whatever I can to help”—[Official Report, 21 October 2020; Vol. 682, c. 1058.]

He made that promise nearly four years ago, and we are still here. Hopefully we can do a bit better today.

After that, I met the right hon. and learned Member for Cheltenham (Alex Chalk), who was then doing the current Minister’s job but is now Secretary of State at the Ministry of Justice. I think I met him three times, and we discussed all the options. We have seen the work that has been done—the waivers, the so-called simplification of the forms, the digitisation—in an attempt to make this work. Sometimes, particularly when the Ministry of Justice proposed a consultation on the small payments scheme, I supported it. I did not think it was the best solution, but I was trying to be constructive, so I went along with it to try to make it work.

However, I am afraid that all the efforts have failed, demonstratively, by the statistics that the right hon. Member for Horsham and many others have shown. To date, the Ministry of Justice has utterly failed to solve the problem, so we need action. We cannot wait much longer. The number of young people and their families, and the amount of money, will just build up over time. The problem will not go away, unless one Minister—I am sure it will be the Minister present today—actually grasps it properly.

I set out initially believing that the DWP appointee scheme was the right one. Families are aware of it, and it has worked in Government and for much larger funds. The amount of money that a loved one gets through their disability living allowance or personal independence payment far outweighs the average amount from a child trust fund, but apparently it is not possible to use that scheme because of the difference between flows of money from DWP and savings and capital. For the life of me, I have never quite understood that distinction, but perhaps there is something in it. I will come on to what I think is behind the Ministry of Justice’s objections.

In the spirit of being constructive, two solutions seem to be on the table. One is the proposal for a new, one-off order solution, which the right hon. Member for Horsham talked about. A family would still have to fill in a form, but it would be a one-pager. They would still have to go the Court of Protection, but it would be a very simple process. I think it has been well thought through by campaigners, and different fund managers have been involved. I believe that Mr Turner wrote to the Ministry of Justice before Christmas. Unfortunately, he received an email from an official in December 2023, which stated that

“we are not able to consider any proposals for an alternative process for accessing CTFs at this time.”

That is not good enough, Minister. People are working hard to come forward with practical solutions within the remit of the Ministry of Justice, and officials are not even willing to see people who are trying to be constructive.

I think that the one-off order solution would work. The Minister might not be able to answer today, but I would like to ask him: would it require a change to primary or secondary legislation to get that solution working, or would the registrar of the Court of Protection simply have to change the administrative rules? It is probably as simple as that, and it would suddenly unlock the problem both for child trust funds and junior ISAs. That is one solution, which the MOJ would be in control of.

The right hon. Member for Horsham touched on another solution: working through the financial service companies, which have shown huge flexibility and taken risk upon themselves. That would not be an MOJ responsibility; I think the MOJ would have to talk to the Treasury. I think the Government have landed this problem in the lap of the MOJ and said, “You sort it out.” If the Minister went to the Chancellor or another Treasury Minister and said, “Look, we want you to say this, and we are happy for you to say it,” all the Treasury Minister would have to say is, “We are relaxed about fund managers of child trust funds or junior ISAs taking that approach, taking the risk upon themselves if anyone objects, and marketing, giving information and promoting the idea that people with DWP appointee status can use the funds and transact them on behalf of their loved one.” That would be what we might call a market solution, but from my insight into how government works, that would require the MOJ to give the green light to the Treasury to make that statement.

Those are two simple, zero-cost solutions to allow vulnerable people to get their own money. After four years of trying, I urge the Minister to wake up and smell the coffee. Why might the MOJ object? I will put myself in his shoes and the shoes of the officials to work out what on earth is going on. The first issue might be the Mental Capacity Act 2005, the Court of Protection and their underlying principles. When officials and Departments have jurisdiction over an Act of Parliament, they can get jealous about how it has worked and not want to see any change. I get that—we have been there. However, democratically elected politicians must challenge the principle behind the Act, to test whether it has been taken too far, because in law there are other principles that apply, including proportionality and reasonableness. Surely those principles apply here. We are talking about small amounts of money for very vulnerable people whose parents and carers ain’t got the time to go to court. They may phone up one person and ask, “Can you help me?” but if the financial service company or the court says, “Well, it is a bit complicated,” they just give up, because their young person is in pain, needs medical help and needs to go to the hospital. That is the reality of their lives.

[Sir Jeremy Quin]

First, on the specific point of proportionality, does the right hon. Gentleman agree that the financial providers are talking about sums below £5,000, and the average child trust fund here is about £2,000? Secondly, tens of thousands of pounds would to through the DWP appointee scheme, which means that in comparison the child trust fund is a tiny amount of money. On the grounds of proportionality, the right hon. Gentleman is making an extremely good case.

[Ed Davey]

I strongly agree with the right hon. Gentleman. He might be interested to know that, while I am not an expert, I am told that principle 5 of the 2005 Act talks about the least restrictive option to achieve the best interests of the vulnerable adult. Can the MCA apply itself to itself, please?

I wonder whether there is another reason why the Ministry of Justice is sticking to the principle despite all the evidence and pressure. Perhaps it wants to get more people to go to the Court of Protection so that the judges there can help with the deputyships of those vulnerable adults as they turn 18. One can have a discussion about whether more families should ultimately go to the Court of Protection. However, when one reads the guidelines of the Court of Protection, it is clear that it rightly sees itself as a court of last resort for a family dispute about money or, more likely, for how a person should be cared for, who should be caring for them and where they should live.

Sometimes, if there is a dispute in the family, the court is necessary and the Court of Protection is brilliant at that. Sometimes, a vulnerable adult may have no loved one or family member, and then the Court of Protection rightly fills that vacuum. However, if families can come to an agreement among themselves, more often than not that will be better than having to go to the Court of Protection. We should make the Court of Protection available to more people. We could advertise and market it—people may want to think about that in due course.

My wife and I are old parents; my son is 16 and I am 58, so I am quite an old dad. I worry about when my wife and I die. My son does not have a degenerative condition, and he is going to live for quite a few years. Of course, we are thinking in due course of going to the Court of Protection or getting a family member such as his sister or one of his cousins to be there for him. The Court of Protection, as I say, has good reason to be there. No one is against it, but it should be used when it is needed.

Perhaps the Ministry of Justice thinks that it has no court backlogs and loads of judges who are just sitting there twiddling their thumbs, so we should give them more business. Come on! Please take the pressures off the system by adopting something simple. I do not like saying this, but there may be a reason why people in the judiciary and legal profession are keen to force people to go to the Court of Protection even when it is disproportionate. Perhaps it is vested interests. I really hope that that is not what we are dealing with, because it is not acceptable.

We are talking about people who are vulnerable, and parents and carers who are stretched to their limits. We are talking about small amounts of money. I urge the Minister to listen to us, and to go back to his Department and the Secretary of State and say that the officials and some of the judiciary from the Court of Protection need to be overruled on this. We need to act proportionately. We need to act in the best interests of thousands of young people who should have access to their own money.

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[Alex Cunningham (Stockton North) (Lab)]

It is a special pleasure to serve under your chairmanship this afternoon, Ms Elliott. I pay tribute to the right hon. Member for Horsham (Sir Jeremy Quin) for securing this debate on behalf of his constituent Andrew Turner. I congratulate him on his detailed speech, which outlined very clearly the challenge before us.

I also want to comment on the speech from the right hon. Member for Kingston and Surbiton (Ed Davey). I am grateful to him for sharing his personal experience of engaging with the system with his son, John. He demonstrated a special empathy for other parents of children with challenging disabilities. He offered solutions, and I remind the House of his most important statement: that people are just after their own money. He also spoke of the need for a simpler system.

That point was repeated by the hon. Member for Devizes (Danny Kruger)—I have just found out how to pronounce his constituency properly, so I hope I did it justice this time—who lamented the fact that we no longer have the children’s trust fund, which was set up by the Labour Government. He tried to blame the right hon. Member for Kingston and Surbiton, but it was the right hon. Gentleman’s colleague in the Treasury—the same person who axed the hospital that was planned in my constituency. Health inequalities have widened ever since, and the hospital is not even on the Government’s new list. The hon. Member for Devizes confirmed that there is consensus in the Chamber that we need action: he said, “Simply give them the money,” which is a good thing for me to mention at the beginning of my speech.

Andrew’s fervent campaign to bring about change stems from the challenges faced by his family, who have come up against tremendous problems along the way as they have tried simply to get access to the money they saved for their son Mikey. We heard about the distress faced by Mikey’s family and others, and also about the deeply disturbing legal advice that Andrew received: that it would be easier and cheaper to wait until Mikey died, because a simpler process could then be used. I cannot find the words to describe the anguish I would feel in such circumstances.

Andrew has become an advocate for the many parents of children with disabilities who all too often come up against these barriers. I pay tribute to him and charities such as Contact for their hard work on this issue. I also thank the other parent campaigners—Nasreen Yasin, Claire Binney, Michele Creed and Ramandeep Kaur, as well as Rachel Dixon, John Roberts and their son, Joseph—for joining us today.

Under the fund introduced in 2005, every child born in the UK between September 2002 and January 2011 received up to £500 in Government vouchers as an incentive for their parents and guardians to open a savings account for them. That initiative was ditched by the coalition Government in 2011, when the junior ISA was created. Disabled children and those from low-income families received an additional amount to provide greater benefits in later life. The trust money was then locked away, and parents were able to add more to the account each year until the child turned 18. Again, as we have heard, parents of children who lack the mental capacity to manage their finances themselves when they turn 18 face making a deputyship application to the Court of Protection to access their child trust fund or junior ISA.

The Ministry of Justice estimates that between 63,000 and 126,000 young people may fall into that category, yet the Court of Protection approved only 15 applications in 2021. The Minister will be aware that Andrew wrote to the Lord Chancellor yesterday outlining the scale of the challenge. He highlighted that, since 2020, an estimated 31,488 disabled young people have been unable to access £72.4 million of child trust fund and junior ISA savings.

The Public Accounts Committee looked into this matter and highlighted reports of families finding the deputyship application process difficult, time-consuming and costly. Fees are waived if families are applying to access a child trust fund, but there are other barriers. The Committee heard that a six-page GP letter is needed as part of the process. The Down’s Syndrome Association said in evidence that low awareness of banking safeguards among the parents it supports is also a barrier to accessing their child’s trust fund. It explained that the fee waiver does not apply if the young adult is still in education, and that many families believe that they still need to pay for the services of a solicitor.

I recognise that the Government have considered measures they hoped would address the problem over the years, but the legislation and processes put in place to support individuals and their families should be much more accessible. We need closer working between the finance industry and Departments to find a workable solution to this ongoing problem. That would have the potential to significantly increase accessibility, helping many more families to access savings locked in child trust funds and junior ISAs.

I agree with the statement from Una Summerson, head of policy and public affairs at Contact. She said that implementing a less restrictive approach is in the best interests of disabled young people. Disabled young people must be allowed to enjoy their savings like everybody else, and continuing to promote actions that fail to address this issue will simply perpetuate injustice. There is an opportunity to bring common sense into the debate and to commit to a new approach.

[Ed Davey]

The hon. Gentleman has made a powerful speech, and I thank him for his kind comments. We all hope that the Minister will take the opportunity to tell us that the Government will look at the issue again and will make changes, but does the hon. Gentleman agree that if this Government fail to make changes, at the next election and in the next Parliament, it is vital that his party, working with others, makes those changes?

[Alex Cunningham]

Yes. Whichever Government are in power, they have to make the changes necessary to make it much easier for people to access the funds. I do not know what the mechanism will be, but I think we can all say that the next Government, of either colour, will deliver on that particular promise, but the Minister might get this sorted before we have that general election. Today might have been the last day the Prime Minister could have called the election, but we still have a few hours to go—bring that on!

The Government referred in their consultation response to clear evidence of the challenges in the current system, with the Court of Protection property and affairs application forms being too lengthy and complex, and the time taken between completing the application to the final order being made being too long and disproportionate for the sums involved. Instead of a wholesale change, however, the Government opted for incremental changes to the current court process. In 2023, the Ministry of Justice created a toolkit for parent carers on making financial decisions and implemented a new digital process for property and affairs deputy order applications, which was rolled out last year and is set to speed up the process. Users can complete some of the court forms electronically and can digitally submit remaining paperwork.

Sadly, Contact tells me that none of the Government’s piecemeal changes has meaningfully simplified the court process or made it more accessible for families with no legal experience. The Government’s strategy is not working. If their intended aim was to have a process that was as accessible as possible, it simply has not been achieved. I hope that the Minister will outline the impact that those changes have had on application processing times, addressing whether future digitalisation of Court of Protection processes is planned, and outline exactly how the Government will remove those blockages to the funds once and for all. Let them have their own money!

[The Parliamentary Under-Secretary of State for Justice (Mike Freer)]

It is a pleasure to serve under your chairmanship, Ms Elliott. I thank my right hon. Friend the Member for Horsham (Sir Jeremy Quin) for securing the debate and continuing the conversation we have had for some time. I was pleased to meet him and his constituent Mr Turner last May to discuss the issue, and I welcome the ongoing debate that we are having.

I will not tiptoe down memory lane, as colleagues have —I am not sure that revisiting the coalition Governments of 2010 onwards is particularly helpful to today’s debate. What I want to do and what is important—and I am sorry if it is dry—is lay out the legal framework that is there is to protect vulnerable people. I understand clearly that the actions of the vast majority of parents are well intentioned, and that they act with great honour and kindness looking after their child or young adult. However, my job is also to protect vulnerable people from any form of abuse, and that weighs heavily on any reforms that we take forward. I appreciate that people will disagree vehemently with me, but I have to take into account the fact that not every parent would act with the best of intentions when accessing the funds.

It is a well-established common-law principle that an adult must obtain proper legal authority to access or manage the finances or property of another adult. That includes, for the purpose of today’s debate, a matured child trust fund of a young adult. People are understandably unaware of that legal principle, and it may be surprising to parents and carers who have been heavily involved in decision making for their young person prior to their turning 18. I want to iterate the steps that we have already taken to try to improve the process, particularly as regards awareness of what steps need to be taken as the young person reaches the age of 18.

[Ed Davey]

Before the Minister talks about reforms that have been made, can I bring him back to the point of principle that he outlined at the beginning of his remarks? I do not think anyone disagrees that there is an important principle, but there is equally a principle of proportionality that I mentioned in my speech. Can the Minister address that point? Where does proportionality arise in his thinking about the principles involved?

[Mike Freer]

I have to say to the right hon. Gentleman that I am happy to have an ongoing conversation. In fact, this is the first time we have discussed the matter face to face since I took on my portfolio. Proportionality is a valid point, but what is the level of risk that the right hon. Gentleman is willing to take? It will be different from the one that I or the Government are prepared to take. The right hon. Gentleman or anybody in this room may be prepared to say that 10, 20, 100 or 1,000 young people could have their money accessed inappropriately. That is a proportionate risk that they are willing to take. My view is that I want to minimise that risk and that proportionality is not easily measured.

I am not a lawyer. I look to my right hon. Friend the Member for Horsham and my legal friends to say that there may be a legal definition of proportionality. However, the definition of proportionality for those who are making decisions against those who are asking for change may be different. I am willing to see if we can bridge the gap, but my view is that I want to ensure that we can both improve access and that protections remain in place so that those who may not have the best interests of the young adults in mind do not get access to funds with total liberty.

[Ed Davey]

I am grateful to the Minister for that answer. It was direct and to the point, and he has given way again, which is generous.

When we look at the risk, we have evidence from the industry, which has looked at the case and many firms and funders have said that they are prepared to take on the risk themselves. Even though the Government are behind it, because the risk and the amount of money are so small, the firms have taken on that risk themselves. Is that not a lesson that the Minister should dwell on? If the MOJ is not prepared to act on that, would he at least go and talk to his colleagues at the Treasury and see if they can make a statement about the way in which the financial services could take on that risk and how the Government would support that?

[Mike Freer]

I am always happy to discuss with any provider and certainly the provider I have spoken to. No provider has beaten a path to my door saying, “We think you have got it wrong and our risk assessment is right.” Any organisation is entitled to make their own risk assessment and accept the consequences if they get it wrong. That is their decision. As for my risk assessments, perhaps I am being over-cautious. I am willing to be challenged on that and I appreciate that people have a different view, but I want to ensure that I take the least risk regarding vulnerable adults.

I will talk briefly in the time left about the work we have done with the Investing and Saving Alliance to try to improve accessibility and knowledge. Given the time, I will have to skip over the part of my speech about the legal framework of the Mental Capacity Act 2005. I think everyone in the room is probably aware of the methodology of applying for the deputyship that gives people access or the ability to act on other people’s behalf. I will not go through that in any great depth.

We have heard that the court process was cumbersome, which is why we looked at how we could change that. We consulted on what kind of different system we could put in place, but there was not a consistent view from the consultation on how we should reform access to the funds. In fact, if we go into the consultation, many people wanted to add safeguards to a new form of access that actually made the system even more cumbersome than the one we were trying to reform. That was a difficulty, as we did not get a common view on what checks and balances needed to be in place. We talked not just to parents, but to charitable organisations, the legal and finance sectors, groups representing the elderly and so on, and we heard that it was too complex. The big message that came out was that people were not really aware of what they had to do or when they had to do it.

I think that the first ask from my right hon. Friend the Member for Horsham was whether we would extend appointeeships to cover child trust funds. We are working with the Department for Work and Pensions to extend the availability of information. I am more than willing to go back to the DWP and talk about whether its process is suitable for child trust funds. It is a very different process: it is about accessing regular payments rather than lump sums, so there is a different quantum at risk. It would take primary legislation to access the DWP-type processes—we double-checked that today. It is not a quick fix, but it is certainly one that I am more than happy to go back and have another look at.

I want to ensure that we are streamlining the processes. Can we take the paper out? Can we use more digital processes? We have seen that the time has reduced from 24 weeks to 12 weeks. We will continue to liaise with the President of the Court of Protection to monitor performance and see what more can be done.

A key issue is that people often do not know what they have to do until the child turns 18, and then they are locked out. We have done two things; I apologise if this sounds a little disjointed. I sat down with TISA, the major provider of child trust funds, and we agreed that as part of its normal maturity mailing, it will include advice and information about how to access and use the Court of Protection to get the relevant legal powers in place. We are taking early steps to educate people as to what they need to do before the person turns 18. That comes alongside the toolkit, which, as hon. Members have noted, provides practical guidance on how to access and navigate the legal process.

My right hon. Friend’s second ask was about making people aware of how to find lost funds. We are doing more work to provide information. People can use the “Find my child trust fund” service on gov.uk. We can continue to do more to raise awareness of that.

Oral Answers to Questions

Ed Davey Excerpts

Tuesday 5th February 2019 Commons Chamber

[Mr Gauke]

We will not hand HMP Birmingham back if it is not safe for us to do so. I am afraid that the attack on any involvement of the private sector in the prison system that we hear from Labour Front Benchers does not represent a balanced approach. We have to look at the successes that exist within the prison system, where the private sector has run very effective prisons. That cannot be ignored, notwithstanding the very real problems that exist, and have existed, with Birmingham.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

rose—

--- Later in debate ---

[Mr Speaker]

I call a south-west London knight, a former Secretary of State for Energy and Climate Change and, by all accounts, a cerebral denizen of the House of Commons, Sir Edward Davey.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

Thank you, Mr Speaker, especially for allowing me to exercise my knees more than usual today.

Will the Secretary of State confirm that the offer and acceptance of payments to and by an MP for the benefit of their constituents by a Minister of the Crown in an attempt to influence votes in this House could represent breaches of sections 1 and 2 of the Bribery Act 2010?

[Mr Gauke]

I am loth to provide legal advice, but the right hon. Gentleman has clearly raised a significant point. I would like to hear more of what he is saying and I am happy to discuss this with him. He is clearly alluding to something, but I am afraid that I am not quite aware what it is.

Joint HMI Prison and Probation Report

Ed Davey Excerpts

Thursday 24th January 2019 Commons Chamber

[Rory Stewart]

I am happy to continue to update the House on progress. The Worboys case taught us some important lessons about pre-sentence reports and connections between the Ministry of Justice and the Parole Board, and we are conducting an extensive review of that. It is important to remind the House that in the most extreme cases—MAPPA 3 cases—we have very significant protections in place for the public. I can hold forth on that in more detail if Members want to talk about the protection arrangements.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

This report is littered with shocking findings. One of the most shocking is when the inspector writes:

“in 40 per cent of cases there had been no work focused on reducing the risk of sexual offending at all”.

How has that been allowed to happen? When will we have the trained staff to put it right? This is a matter of urgency.

[Rory Stewart]

The specific issue there is around the provision of accredited programmes, and there are two problems. The first is that accredited programmes are not suitable for all sex offenders. At the moment, we do not have programmes that are able to reduce the risk of reoffending significantly. In fact, some of the past sex offender treatment programmes can increase rather than decrease the chance of reoffending if they are delivered to the wrong type of sex offender. We have to distinguish between lower risk and higher risk sex offenders and ensure that we are delivering programmes in the right way. The Horizon and Kaizen programmes, which we have rolled out, are key to that, but they are not the key for everyone. I agree that we can do more to assess and to record, but I politely disagree with the inspector’s implication that we should attempt to deliver accredited programmes to 100% of these cases.

Oral Answers to Questions

Ed Davey Excerpts

Tuesday 18th December 2018 Commons Chamber

[Lucy Frazer]

I know that my hon. Friend, as Chair of the Justice Committee, has done a significant amount of work on this issue, and I have been pleased to respond to a number of debates that raised these important issues. The deal will allow us to continue working closely with the EU, specifically on family matters, which are important to so many citizens. We will continue to press for broader civil jurisdiction arrangements.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

Can the Minister confirm that the Brexit talks on co-operation on justice and security have not yet been concluded, and that the limited text on justice and security in the political declaration is not legally binding? Can she give the House her best estimate of how long, were the House to vote for the withdrawal agreement, it would take to conclude the specific Brexit talks on justice and security? One year? Two years?

[Lucy Frazer]

As the right hon. Gentleman will know, the political declaration sets out the framework for the negotiations that will go forward. I would encourage him to read the assessment the Government produced on 28 November on the security partnership, which compares the impact of the criminal justice and law enforcement proposals set out in the political declaration with a no deal scenario.

Courts and Tribunals (Judiciary and Functions of Staff) Bill [Lords]

Ed Davey Excerpts

2nd reading: House of Commons
Tuesday 27th November 2018 Commons Chamber

[Mr Gauke]

My hon. Friend brings me back to the Bill and makes a good point—one which came up on several occasions during the deliberations in the other place about the extent to which we should be prescriptive, or whether powers should be left with the rule committees. I share his instinct that as much as possible should be left to the rule committees, because they are best placed to make such assessments. Indeed, that leads to points made by distinguished retired judges in the other place about not being over-prescriptive. Such matters may be a point of discussion this afternoon or at the Bill’s later stages.

I now turn to the Bill in greater detail. The measures will help to provide the greater flexibility and responsiveness that we need within our court system. That includes freeing up judges’ time from the most routine tasks associated with court cases. The Bill will build on existing powers that already enable staff in most courts and tribunals to be authorised to exercise some of the functions of judges. It will continue to allow appropriately qualified and experienced staff in the civil, family and magistrates courts, the High Court, the Court of Appeal, the Court of Protection and tribunals to be authorised to carry out uncontroversial and straightforward judicial functions under judicial supervision. The Bill will enable those arrangements to be extended for the first time to the Crown court, where court officers can only currently undertake formal and administrative matters. Allowing court and tribunal staff to exercise a wider range of judicial functions will potentially free judges up from undertaking more regular tasks, such as changing the start time of a hearing or changing a pre-trial preparation hearing date, so that they can focus on the more substantive matters of the case.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I welcome the Government’s amendments in the other place to paragraphs 32 and 44 of the schedule, which were secured by my noble Friend Lord Marks, because they ensure that only a judge will have the power to deprive people of their liberty or eject them from their family home. As we give court staff some more powers, it is important that we set down some markers for the types of decisions that should be reserved for trained professional judges.

[Mr Gauke]

Indeed, and I will turn to that point in a moment. I hope that the clarification provided by those amendments will be widely welcomed in this House. The passage of this Bill in the other place was characterised by a constructive and co-operative approach from both sides, and I hope that that will continue to be the case—I suspect it will, but we shall see—because the point of those amendments was to provide particular protections. Other issues debated in the other place included suggestions about being more prescriptive. As I said to my hon. Friend the Member for Cheltenham (Alex Chalk), it is right that we use the judicially led rule committees in many of those areas, but the right hon. Member for Kingston and Surbiton (Sir Edward Davey) makes a perfectly fair point.

Oral Answers to Questions

Ed Davey Excerpts

Tuesday 13th November 2018 Commons Chamber

[Lucy Frazer]

There are many areas of security and justice where it is important and beneficial to get the best possible arrangement. The European arrest warrant is an important one, and we are negotiating hard to ensure that we get the best possible arrangement going forward.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

The former director of Europol, a Brit, has warned that deal or no deal, leaving the EU means that the UK will lose our leadership role in Europol and Eurojust, often both critical for fighting the most serious criminals. How does the Minister believe that leaving the EU will help Britain to bring serious organised criminal gangs to justice?

[Lucy Frazer]

As I have mentioned, Europol and the European arrest warrant—all these areas where we share data—are incredibly important to us, as they are to the EU. We are one of the largest contributors to security information within the EU. The Home Office leads on these matters, and it is trying to ensure that we get the best possible co-operation going forward.

Civil Liability Bill [Lords]

Ed Davey Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 23rd October 2018 Commons Chamber

[Chris Philp]

The companies are not defending the claims because qualified one-way costs shifting makes it more expensive for them to successfully defend a claim than simply to pay it out. The system simply is not working.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

Does the hon. Gentleman think that any genuine claimants will be hit by this measure and will not receive the compensation that they should get?

[Chris Philp]

The right hon. Gentleman raises a fair concern. Of course, we need to make sure that we do not overcompensate and find ourselves in a situation in which genuine claimants are prevented from claiming. The way in which we are legislating strikes that balance and genuine claimants can still make a claim. My hon. Friend the Member for Bromley and Chislehurst referred to the use of an easy-to-operate online portal as a way of ensuring that claims can be handled easily, even by laypeople. The concern that the right hon. Member for Kingston and Surbiton (Sir Edward Davey) raises is reasonable, but I think that the Government have addressed it in their handling of the matter. However, I am sure that the Minister will comment further on the right hon. Gentleman’s point.

--- Later in debate ---

[Chris Philp]

I agree wholeheartedly with my hon. Friend, who I know has a distinguished legal background. Both he and the Chair of the Justice Committee have powerfully made the point that McKenzie friends should be voluntary and unpaid. I hope the Minister heard that excellent recommendation, which has now been made by two learned hon. Members of this House.

[Sir Edward Davey]

I congratulate the hon. Gentleman on making a speech against the Bill. He has admitted that the insurance companies should be fighting the claims, that McKenzie friends should not be paid and that claims management companies should be regulated. He might not have realised it, but he has defeated the Bill by himself.

--- Later in debate ---

[Chris Philp]

I disagree with all three things that the hon. Gentleman has said. First, as I said earlier to the right hon. Member for Kingston and Surbiton (Sir Edward Davey), the Government have no intention at all of preventing legitimate claims from being made. The Government are keen to facilitate those claims, and the online claims portal will help with that. There is categorically no intention of disbarring, preventing or in any other way inhibiting legitimate claims from being made.

Secondly, the hon. Gentleman referred to the 1% fraudulent claims figure. The reason the reported figure, which in my submission is dramatically under-reported, is so low is that insurance companies are, quite wrongly, choosing to settle those claims—even suspicious claims, even claims without merit—without defending them, because the cost of defending them, which is about £10,000 or £15,000, far exceeds the value of the pay-out. So the 1% figure cited by the hon. Gentleman goes nowhere close to reflecting the true scale of fraudulent claims in this area.

[Sir Edward Davey]

Will the hon. Gentleman respond to a general point? Does he believe that when we are tackling a problem, in any aspect of society, we should deal with the symptom or the cause?

[Chris Philp]

Of course we should deal principally with the cause, and that is what the Bill seeks to do. [Interruption.] The right hon. Gentleman asked about causes. We can talk about claims management companies and we can talk about referral fees—those are important issues to deal with—but the cause of this problem is the financial incentives created by qualified one-way costs shifting, whereby claimants, aided and abetted by claims management companies, can have a crack for free, suffering no loss if their unmeritorious claims are dismissed. If the right hon. Gentleman wants to go into the cause of the problem, that is the cause of it, and elevating the small claims track limit to £5,000 will do a great deal to eliminate the cause. If he wishes to address the cause, as his intervention implied, he should vote against new clause 1.

Justice

Ed Davey Excerpts

Monday 22nd October 2018 Ministerial Corrections

The following is an extract from oral questions to the Secretary of State for Justice on 9 October 2018.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I am glad that the Minister prefers sport to chain gangs, but can he tell the House when the use of sport for prisoner rehabilitation will be the norm, rather than the exception?

[Edward Argar]

The right hon. Gentleman is right to highlight again the importance of sport. The report published by Professor Meek in the summer, of which we have accepted 53 of the 54 recommendations, sets out a clear direction of travel—that is, alongside education and developing skills, and provisions for mental and physical health, sport plays a key role for prisoners in the rehabilitative process.

[Official Report, 9 October 2018, Vol. 647, c. 11-12.]

Letter of correction from the Under-Secretary of State for Justice, the hon. Member for Charnwood (Edward Argar):

An error has been identified in the response that I gave to the right hon. Member for Kingston and Surbiton (Sir Edward Davey).

The correct response should have been:

Oral Answers to Questions

Ed Davey Excerpts

Tuesday 9th October 2018 Commons Chamber

[Edward Argar]

My hon. Friend raises an important point; she has done a lot of work in this area and more broadly around mental health. Sport can play a significant role in addressing mental health issues in prison, but so too can arts, education and others approaches, as she highlights. If she feels that it would be useful, I would be happy to meet her to discuss further her visit and what she took away from it.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I am glad that the Minister prefers sport to chain gangs, but can he tell the House when the use of sport for prisoner rehabilitation will be the norm, rather than the exception?

Victims Strategy

Ed Davey Excerpts

Monday 10th September 2018 Commons Chamber

[Edward Argar]

I am grateful for my hon. Friend’s question. He has raised that issue previously, particularly in his work as a member of the Justice Committee. He will be encouraged to hear that there are a number of references to the operation of the Parole Board in the strategy, and we will see later this year the Government’s response to the consultation about the operation of the Parole Board. On his specific point, the strategy sets out how the Parole Board will move towards a presumption that victims can, if they wish, read out a victim personal statement in that process.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I warmly welcome the Minister’s statement. Many of the promises the Government are making today have cross-party support. I am sure the Minister will recognise that without adequate funding to put them into practice, many of those promises will be empty. In the 50 pages of the victims strategy, I counted what looked like a commitment to £60 million of new funding. Is that it, or is there any extra funding, to make sure that we are not just legislating but doing?

[Edward Argar]

I am grateful to the right hon. Gentleman for his kind words and the tone with which he approaches this important issue. As I set out in response to the hon. Member for Ashfield (Gloria De Piero), around £200 million of funding has already been spent on supporting victims of crime throughout the system. We believe that that can be better spent by joining it up more effectively and spending it in ways that reflect what victims say they need. The right hon. Gentleman will also see in the strategy a commitment, for example, to an additional £8 million to support children who have witnessed domestic abuse and domestic violence. That funding is already secured.