Draft Civil Proceedings and Magistrates' Courts Fees (Amendment) Order 2025 Debate

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Department: Ministry of Justice
Wednesday 12th March 2025

(1 week, 3 days ago)

General Committees
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Kieran Mullan Portrait Dr Kieran Mullan (Bexhill and Battle) (Con)
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It is a pleasure to serve under your chairmanship, Sir Edward. I appreciate the opportunity to speak to the draft order, which seeks to reform the setting of court fees in a number of areas, as the Minister has set out.

Court fees set under section 92 of the Courts Act 2003 may recover costs at only a reasonable predictive estimate of the cost of administration. As the Minister has explained, these reforms relate to three fees. First, fee 4.1 pertains to applications for council tax liability orders, which local authorities use to collect unpaid council tax. Secondly, fee 9.1 addresses applications for warrants of entry. These warrants are most frequently used by utility companies to gain access for disconnections, but they also serve a crucial role in safeguarding vulnerable individuals. Finally, fee 11.2 of the Civil Proceedings Fees Order 2008 covers the cost of selling seized ships or goods valued over £100,000 through High Court auctions.

The fees play an important role in financing the operations of HMCTS. For example, CTLO applications generated £1.1 million in 2022-23, while warrants of entry raised £7.2 million from approximately 327,000 applications. These reforms sit alongside a revised costing methodology introduced by the Ministry of Justice, which offers a more detailed and accurate assessment of administrative costs. The change ensures that cost assessments better reflect operational realities and provides a clearer basis for determining whether adjustments are necessary.

Although we broadly support this draft order, we ask the Government to provide further reassurances in some key areas. As the Minister emphasised, the draft order does not change the value of fees, though it does establish a framework for future increases above costs. It is essential that any future adjustments are subject to appropriate scrutiny and do not disproportionately impact court users, particularly those on lower incomes. Enhanced fees must not become a barrier to justice. Although these fees are relatively low in nominal terms, they apply to high-volume processes and could affect a significant number of people. We ask the Government to commit to monitoring the impact of these fees to ensure they do not deter individuals or businesses from seeking redress.

The Government have stated that the future revenue from fees will be reinvested in the justice system. We seek assurances that the funds will be used directly to improve court efficiency, reduce delays and enhance digital infrastructure, rather than being absorbed into broader departmental budgets. I also encourage the Government to establish a periodic review process to assess whether these fees continue to be appropriate. Costs fluctuate, so regular reviews would ensure that fees remain fair and proportionate over time. We urge the Government to engage with stakeholders and to commit to regular reviews to ensure that court fees continue to serve their intended purpose without creating unintended barriers for court users.

We support this draft order, but we will remain vigilant in holding the Government accountable for its implementation.