Oral Answers to Questions

Helen Grant Excerpts

Tuesday 2nd July 2013 Commons Chamber

[Mr David Ward (Bradford East) (LD)]

1. What steps he is taking to reduce the cost and quantity of claims for compensation for whiplash injuries.

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

Earlier this year, the Government consulted on proposals to reduce the number and cost of whiplash claims. We will publish our response after we have considered the Transport Committee’s report, which we expect to be published before the summer recess.

[Mr Ward]

Car insurance premiums in Bradford are the highest in the country. The Institute and Faculty of Actuaries has released information showing that the number of third-party whiplash claims rose by 5% in the year 2010-11, although the number of accidents fell. According to the institute’s chairman, 60% of the claims were exaggerated, misrepresented or fraudulent. Will the Secretary of State look again at the period within which claims can be made? At present, a claim can be made up to three years after a whiplash accident.

[Mrs Grant]

We have no plans to change the law on limitation, but I assure my hon. Friend that the Government are absolutely committed to tackling fraudulent whiplash claims, while also ensuring that those with genuine neck injuries receive the compensation that they need and deserve. Making the system fairer for defendants does not, of course, compromise access to justice for claimants, and we will seek to restore balance to the civil justice system.

[Helen Jones (Warrington North) (Lab)]

As the Minister knows, the vast majority of claims are genuine. Rather than being obsessed with this issue, should not the Government be targeting some of the practices of the insurance industry, such as cold-calling victims or referring them to its in-house lawyers in the hope of settling claims cheaply? Why are the Government not doing that? Is it because, again, they are on the side of the big battalions rather than the consumer?

[Mrs Grant]

The hon. Lady has got it absolutely wrong. We know that the Government, the insurance industry and claimant lawyers must all work to tackle fraud, because it is completely unacceptable. We fully expect the industry to pass on the considerable savings that it will make to the public in the form of reduced insurance premiums.

[Mr Julian Brazier (Canterbury) (Con)]

Having suffered a severe whiplash injury after someone shunted my vehicle many years ago, I have great sympathy for genuine victims, but there is widespread evidence that gangs have moved into what they see as a profitable business, generating deliberately fraudulent claims, and that that is driving up premiums for ordinary motorists.

[Mrs Grant]

I agree. Unfortunately, a compensation culture was allowed to develop under the last Government, and we are having to deal with it now. Our reforms will ensure that meritorious claims will always be possible, while also ensuring that unnecessary claims are avoided.

[Ms Margaret Ritchie (South Down) (SDLP)]

Given that the cost of car insurance is very high in Northern Ireland, particularly in relation to whiplash injuries, and given that the issue was referred to the Competition Commission last year, will the Minister tell us whether she has received any progress reports from the commission?

[Mrs Grant]

I personally have received no progress reports, but I am happy to look into the matter for the hon. Lady. The Automobile Association recently reported a 4.1% reduction in premiums, which it attributed to the impact of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and the Government’s other reforms, but it is clear that much more needs to be done.

[Stephen Gilbert (St Austell and Newquay) (LD)]

2. What assessment he has made of the use of restorative justice on the secure children’s estate.

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[George Eustice (Camborne and Redruth) (Con)]

9. What assessment he has made of the effectiveness of the small claims procedure.

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

In April, the Government increased the limit in the small claims track from £5,000 to £10,000, with the aim of ensuring that more claims are resolved in a way that is accessible, proportionate and cost-effective.

[George Eustice]

I am grateful for that answer and welcome the raising of the threshold from £5,000 to £10,000, but a constituent of mine has highlighted some of the difficulties people have enforcing some judgments. My constituent had a judgment in his favour for £475 against a tradesman who failed to complete a task, but never received the money; he found that his only remedy was to incur further legal and court costs. Does the Minister agree that we need to review enforcement in such cases where payment is not made?

[Mrs Grant]

My hon. Friend makes a good point. Our “Solving disputes in the county courts” consultation considered reforms to the attachment of earnings order and the third party debt recovery order. We support those reforms and will implement them as soon as resources allow. Changes have been made to the charging order and order for sale procedures, which will help both creditors and debtors.

[Ian Mearns (Gateshead) (Lab)]

10. What steps he is taking to reduce reoffending.

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[Caroline Dinenage (Gosport) (Con)]

13. If he will take steps to ensure that in cases where a person has disappeared and is presumed dead, their family and loved ones are better able to deal with the practical and administrative issues that arise.

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

We are working with the General Register Office to create the rules and regulations necessary to implement the Presumption of Death Act 2013, which will create a single certificate of presumed death equivalent to a death certificate.

[Nigel Adams]

I welcome that response, and so will the family of missing York woman Claudia Lawrence. We have certainly moved on in the past few months and I am very grateful. Can my hon. Friend confirm that a Bill will be put before the House to deal with the issues around guardianship, and will she tell the House the likely time scale for that?

[Mrs Grant]

A consultation on guardianship will be launched this year, with a view to taking a final decision on guardianship next year.

[Caroline Dinenage]

Leading Seaman Timmy MacColl went missing while in Dubai with the Royal Navy last May. He leaves behind a wife and three small children. The Royal Navy is now seeking to get a certificate of death without any face-to-face consultation with his wife. On top of the emotional strain, this casts a question mark over the family’s financial future and where they will live. To what extent can the Ministry of Justice liaise with the armed forces in such cases and ensure that the family are much more involved in these decisions?

[Mrs Grant]

I know that my hon. Friend cares deeply about these issues and has worked tirelessly in assisting this family in her constituency whose loved one has gone missing. The Ministry of Defence has its own procedures for presuming missing service personnel to be dead and does not liaise with the Ministry of Justice in individual cases, but if my hon. Friend would like some further information on the involvement of family members, I am happy to make representations to the Defence Secretary on her behalf.

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[Mark Menzies (Fylde) (Con)]

16. What assessment he has made of recent trends in the development of judicial review.

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

There has been a significant growth in the number of judicial review claims, increasing by 86% between 2007 and 2012. Judicial review will continue to play an important role in holding Government and others to account.

[Mark Menzies]

Does the Minister agree that too much time and money are being spent on weak and unmeritorious cases, and that this needs to be addressed with some urgency?

[Mrs Grant]

My hon. Friend makes an excellent and astute point. Judicial review is a crucial check on the power of the state, and it will remain so. However, it is also subject to abuse—stifling innovation, frustrating reforms and incurring considerable cost. Our reforms will tackle the burden while maintaining the benefits of the rule of law and access to justice.

[Robert Flello (Stoke-on-Trent South) (Lab)]

Aside from the near impossible job of getting the Attorney-General to quash an inquest, the only route that families have to challenge a coroner’s decision is through judicial review. The Government have already stopped bereaved families having a proper coroners appeal system. Is not the restriction of judicial review a further kick in the teeth for bereaved families?

[Mrs Grant]

I do not agree with the hon. Gentleman. He is well aware of the actions that have been taken for bereaved families. I will not go into too much detail now, but I will say, picking up the point about judicial review, that these proposals strike the right balance and a fair balance, and they are proportional and targeted. The system is already subject to abuse. The reforms that we will put forward will not restrict access to justice or the rule of law, nor the right to a fair hearing.

[Kelvin Hopkins (Luton North) (Lab)]

T1. If he will make a statement on his Departmental responsibilities.

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[Ian Swales (Redcar) (LD)]

T9. In its court translation services, Capita is delivering only 90% compliance against a contract level of 98%. Will the Minister tell the House the overall cost of that failure to the Courts Service and the total amount of the penalties that have been levied on Capita?

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

The were difficulties and teething problems at the beginning, but the contract is now running at a very good success rate. The contract saved the taxpayer £15 million in the first year. I believe that it will be more effective, accountable and transparent than the previous version.

[Ian Mearns (Gateshead) (Lab)]

T10. There are significant questions of confidence relating to the Justice Secretary’s plans to privatise courts, not least from the Lord Chief Justice, and the Justice Secretary’s own officials have little confidence in his plans to privatise the probation service. Does anyone in the criminal justice system have any confidence in the Justice Secretary?