Judicial Pensions and Fee-Paid Judges’ Pension Schemes (Amendment) Regulations 2019

Lord Adonis Excerpts

Wednesday 20th February 2019 Lords Chamber

[Lord Beith (LD)]

My Lords, I am grateful to the Minister for his careful exposition of the scheme and for the quotations from the report, which the Lord Chancellor made to Parliament, detailing the consultation. We cannot consider this interim proposal—this carry-over proposal—without reflecting that it is part of a complex situation with judicial pensions which causes a great deal of anxiety. Whenever you inquire of those involved in carrying out recruitment to the judiciary or of those who are applying, a number of issues are mentioned, such as the state of the court estate, but pensions come up every time, because of the bizarre and convoluted nature of the system which has resulted from the changes that have been described. The changes produce really bizarre situations where relatively junior members of the Bench find themselves with greater entitlements than those who have served for a number of years. One of the results of this is a deterrence to recruitment. In some cases, there is an incentive for retirement because some are better off retiring than remaining in the scheme.

In extending the present contribution rate for the next year, a number of things have to happen, including litigation. One can only express the hope that pensions cease to be a disincentive to recruitment, because the recruitment problems of the judiciary affect the ability of citizens of this country to obtain timely justice—quality is maintained, but timeliness can become a problem. They also affect the substantial export earnings of our courts and of the legal services which surround them. They are therefore pretty important. As I said, you cannot get into any discussion about judicial recruitment without the pensions issue arising. It would be good if the Government could sort that out.

[Lord Adonis (Lab)]

My Lords, is it correct, from my scanning of the web as to what the dispute before the Court of Appeal, to which the noble and learned Lord referred, is about, that the taxpayer could potentially face a bill of upwards of £750 million if this case is lost? It seems to me to be an extremely high figure. I assume it is a calculation to do with the massive additions to pensions that would be required if all judges got the transitional relief which, at the moment, is only going to be afforded to a small proportion.

My second question makes an obvious point for somebody who is not a lawyer or a judge. Am I right in assuming that the judges who will sit on this case are adjudicating on their own pensions? In no other walk of life would that be considered a satisfactory arrangement. Will the noble and learned Lord tell us whether that is the case? If it is the case, what is the protection against judges simply, to be blunt, ruling in their own self-interest?

[Lord Faulks (Con)]

My Lords, before my noble and learned friend answers that difficult question, I wonder whether he can help the House on a general question about judicial pensions and eligibility. Judges must now retire at the age of 70; there is strong feeling abroad that this often wastes judicial talent. In other fields, people often peak at 70 so a retirement age of 75 may be far more suitable, given that the same retirement age applies to magistrates, jurors and other people given the task of determining matters of justice.

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[Lord Keen of Elie]

My Lords, I am obliged for the contributions that have been made. I note the points made by the noble Lord, Lord Beith, and the noble and learned Lord, Lord Judge, and I acknowledge that pension issues have created very real issues about recruitment, particularly to the High Court Bench. That is something of which we are conscious and have in mind and under consideration going forward. The whole question of the terms and conditions on which we seek to appoint the judiciary is critical, and I acknowledge the need to ensure that we maintain a judiciary whose expertise and integrity are regarded as pre-eminent. The noble Lord, Lord Beith, touched on the value—if you can put it that way—of legal services in an export sense. It is estimated to be in the region of £4.5 billion, so it is a significant matter in that context alone; but of course, it has a much wider resonance and importance than that.

As the noble and learned Lord, Lord Judge, observed, those hearing this matter in the Supreme Court are not impacted by the transitional provisions we are concerned with in the McCloud case and the related Miller case, which is still to be heard. In any event, I remind the noble Lord, Lord Adonis, of the judicial oath and the confidence maintained in the integrity of our judiciary, which is entirely justified.

Regarding the potential cost of the McCloud decision, it is a matter of speculation. It does not refer just to judicial pensions; it is also relevant to firefighters.

[Lord Adonis]

My Lords, I am an avid reader of the Law Society Gazette, which says that £750 million has been provided for in the department’s own accounts as an insurance against the loss of this case. Is that correct?

[Lord Keen of Elie]

I am not in a position to comment on that figure, but if the noble Lord is concerned about it, I will write to him after seeing what the position is in the accounts, as I do not have them to hand.

The issue of the age of retirement has been debated, and we are conscious of it. Many noble and learned Lords who find themselves retired from the Bench are able to make a convincing contribution to the affairs of this House for many years after their retirement, and it seems in one sense unfortunate that we cannot harness that expertise on the Bench as well as off it.

This is a purely interim measure, pending the final valuation which will follow the decision in McCloud, and we will therefore be taking forward the question of contributions as soon as that valuation process is completed. There is a wider interest—expressed, for example by the noble Lord, Lord Beith—in the whole question of these pension reforms, and it is underlined by the points made by the noble and learned Lord, Lord Judge. We have a scheme, we are implementing it and taking it forward, but this is an interim measure to maintain contributions, not to increase them.

Motion agreed.