Social Action, Responsibility and Heroism Bill

John Hemming Excerpts

Monday 21st July 2014 Commons Chamber

[Chris Grayling]

They do two things. They consolidate the law, which exists in fragmented places around past legislation, so it is very clear what the law says, and they provide additional protection, particularly for volunteers, but, above all, they send a signal from Parliament to the courts, in the way that past legislation also has, and set out a series of principles off the back of which the courts will evolve a jurisprudence. They also send a powerful message to those who never get near the courts and who may give in to claims and currently do not feel the law is on their side—I can assure the House that they do not feel the law is on their side—that actually they can stand up and defend a claim in the knowledge that Parliament has very clearly said that the balance in the courts should be in their favour. So this is as much about sending a message outside the courts as inside the courts.

Although this Bill focuses on three issues, as I have said I do think that clause 3—the responsibility piece—has a particular importance in ensuring we provide proper protection for small businesses. I have talked to countless business groups and employers who tell me how the compensation culture is tying their business in knots. Employers might do the right thing and put in place sensible procedures, but then someone does something daft and the employer still finds themselves facing a damages claim. Of course sometimes that claim will have a genuine basis, and of course sometimes it needs to be recompensed in the courts, but if we are to achieve our goal of supporting business and enterprise and ensuring we continue our success in creating new jobs, we have to make sure the law is properly balanced.

I recognise that worries about liability can arise in other circumstances, too, particularly in the voluntary sector, and let me now turn to the other clauses that address those concerns. In a survey carried out by the NatCen Social Research and the Institute for Volunteering Research, worries about risk and liability was an issue cited by 47% of those questioned who were not currently volunteering. That study was carried out over the course of 2006-07, but the more recent insightful reports by Lord Young and Lord Hodgson concluded that this remains a real issue for would-be volunteers. Indeed, in the Queen’s Speech debate we heard from a number of hon. Members who reinforced that message from volunteering groups in their constituencies. It has been confirmed by Justin Davis Smith, the executive director of volunteering and development at the National Council for Voluntary Organisations, who said when we announced our plans that there is

“a great concern about risk…anything that can be done to break down barriers to people getting involved in their communities is very welcome.”

I say to my hon. and learned Friend the Member for Harborough (Sir Edward Garnier) that it is precisely for those people that we are sending one of the signposts in this Bill.

[John Hemming (Birmingham, Yardley) (LD)]

Obviously, I support the Government’s objectives and making things easier for volunteers. Have the Government made any study of what effect the Bill would have on the costs on insurance to protect people against strange litigation?

[Chris Grayling]

It is difficult to give an exact answer on that. We have not been able to quantify it exactly, but I believe the Bill will contribute to the downward pressure on insurance premiums coming from a range of measures we are putting in place. In itself, it will not necessarily make a massive difference, but together with the other pieces of the jigsaw puzzle we are putting in place on different aspects of insurance costs, ranging from the independent medical panels we are putting in place for motor insurance claims to some of our changes to the regulation of no win, no fee lawyers, it will have—we are already seeing this in some areas—a downward effect on insurance claims.