Legal Aid, Sentencing and Punishment of Offenders Bill

Lord Howarth of Newport Excerpts

Monday 12th March 2012 Lords Chamber

[Lord Best]

My Lords, Amendments 76 and 77 are consequential on Amendment 75. Amendment 75 relates to legal aid for work covering welfare benefits advice and casework relating exclusively to the potential loss of a home because of the non-payment of rent or mortgage. The amendment is advocated by Shelter and backed by Citizens Advice, Justice for All, the Law Society, the Law Centres Federation, the Salvation Army, Young Legal Aid Lawyers, the Legal Aid Practitioners Group, the Housing Law Practitioners Association, the Bar Council and the Advice Services Alliance.

The amendment addresses an anomaly in the Bill. Very properly, the Bill leaves legal aid as it is in funding work to defend possession proceedings in the courts, and I commend the Government for prioritising this support. However, the proposal in the Bill is for legal aid funding to be withdrawn for the advice and support surrounding possession proceedings that at present prevents these housing cases from clogging up the courts and leading unnecessarily to homelessness thereafter. I gather that between one-quarter and one-fifth of the time of the solicitors and caseworkers dealing with clients’ potential loss of their homes goes on sorting out the non-payment of rent or mortgage, usually relating to benefit claims. Typically, this means discovering that arrears have built up because of a problem with the administration of housing benefit. Unsurprisingly, in view of the complexity of these arrangements, local authorities can make bureaucratic errors, claims forms can be lost, incorrect payments can be made and so on. At present, legal aid makes possible the service that can often sort out these matters through an expert contacting the officials on behalf of a probably confused or inarticulate tenant. The same goes for claims for support for mortgage interest by homebuyers who lose their jobs but are likely to be unfamiliar with the processes of seeking benefits.

The shift next year from councils administering housing support for tenants to the Department for Work and Pensions doing so is likely, at least for the first year or two, to compound the problem. It is not just that officials new to the task will need to learn the ropes but that the loss of close working relationships between local landlords and local authority benefit teams will take away an important dynamic for sorting out these difficulties.

Shelter’s extensive experience of thousands of cases each year is that the possession claims due to rent arrears can often be headed off at the pass by the Shelter adviser making speedy representations to the housing department that may well have failed to assess a housing benefit claim appropriately. Without legal aid, thousands of cases would certainly have gone to court, using court time and public money, and might still not have been resolved. Worse, without this help many tenants would have lost their homes through no fault of their own.

On other occasions, tenants will leave matters until the last moment and the case will have to go to court. However, an adjournment will often be granted, usually for four weeks. During that time, the legal aid-funded adviser can beaver away, establishing the facts and negotiating as necessary with benefits officials. If in the future the advisers in such cases are not able to handle the support with benefits claims, if they can deal with matters only in the courts and are not free to treat with officialdom on behalf of the client, and if they have to sit on their hands and do nothing for four weeks after an adjournment, people will lose their homes and costs to the taxpayer will rise. The courts will have more adjournment hearings, landlords will not get arrears paid off and justice will not be done.

The chief executive of the South West London Law Centre has explained to me that, in future, to engage the housing benefit officers in a dialogue it will be necessary to issue witness summonses to bring them to court because dealing with them outside court processes will no longer be funded. That would mean costs to benefit officers from having to travel to the court and, no doubt, spend time hanging about, perhaps facing difficulties from not having all the right files with them. It is obviously better for the legal aid-funded expert to deal directly with the official before or during the four weeks of adjournment of a case when so often the problem can be sorted out. If benefits advice relating specifically to possession proceedings is taken out of the scope of legal aid, the funding that remains covered by it—75 per cent to 80 per cent of expenditure—will be much less effective.

In Committee, I argued for the continuation of legal funding to cover many other aspects of housing cases. However, the amendment before us today is much more modest, much more focused and simply retains the scope of legal aid to provide benefits advice and casework where possession is being sought by the landlord or the mortgage company. It seems certain to cost the state a good deal less than removing from the scope of legal aid the funding that pays for the work that prevents and solves problems, and ensures that the rest of legal aid spending and the time of the courts is not wasted when matters could be settled away from the courtroom. It means that the Bill will not unwittingly lead to the injustice of people unnecessarily losing their homes because there was no one there to sort out the problems with their benefits, particularly in the next year or two when the whole housing benefit system will go through such dramatic change.

The amendment represents a very modest change to the Bill but an important and cost-effective one. I hope it is acceptable to the Minister. I beg to move.

[Lord Howarth of Newport]

My Lords, I fully endorse the amendment proposed by the noble Lord and will add just two points for the consideration of the House that I do not think he touched on. I take it that his amendment would encompass legally aided advice in relation to council tax benefit as well as to housing benefit and support for mortgage interest, which he mentioned. We know that, under the changes that the Government propose, adjudications about council tax benefit will become very contentious. The rules for council tax benefit will be made locally and will vary, perhaps significantly, from one local authority area to another. I wonder whether when he responds to the debate the noble Lord, Lord Best, would comment on that.

My other point is a reflection that I should like to put to the Minister. Having looked at outcomes and data provided by the Legal Services Commission, Citizens Advice has found that legal aid to advise benefit claimants represents a very good investment, certainly where housing is concerned. It has computed that for every £1 invested in advice on housing benefit, some £2.34 is saved for the public purse. Indeed, across a range of benefits—others are outside the scope of the amendment—it has found that the saving to the public purse may add up to as much as £8.80 for every £1 invested. I understand that the Government do not agree with those figures that Citizens Advice has put forward. It would be helpful if the Minister could say something about those calculations. If the Government do not agree with them and he is not ready to refute them in detail this evening, perhaps he will write to those of us who have been actively involved in this Bill to explain on what grounds the Government refute the Citizens Advice calculations.

--- Later in debate ---

[Lord McNally]

My Lords, I listened with care to the views of the noble Lord, Lord Best, on matters concerning housing. However, our existing proposals make sensible provisions to keep people in their homes. Notably, they already preserve legal aid for advice and assistance for those facing immediate risk of losing their dwelling, whether the cause is housing-related or a consequence of welfare and debt issues.

Crucially, legal aid will be available when repossession action is contemplated, for example where a person is threatened with repossession action. Our plans do not mean that a case must reach court before legal aid is available. Therefore, for example, legal aid would be available on reaching agreement with a landlord to delay threatened possession action pending the resolution of a welfare benefits issue. In addition, in cases where possession proceedings have already started, legal aid could be used to argue for an adjournment if, for example, the individual is likely to be in a position to make the necessary payments if the benefits dispute is resolved in their favour.

Some argue that we need to fund welfare advice earlier to prevent problems escalating, but, crucially, what people often need is general advice on, for example, benefits, debt or housing, not specialist legal advice. That is one reason why we were pleased to announce that additional funding will be made available in the Budget for citizens advice bureaux on a sustainable footing. We recognise that many people rely on benefits, and my department is working with the DWP as part of the wider welfare reform programme to improve the quality and effectiveness of initial decision-making in applications for social security, reconsideration within the DWP and a system of subsequent tribunal appeals.

In addition, the Bill ensures that legal aid will continue to be available in judicial review about welfare benefit decisions and benefit matters which relate to the Equalities Act 2010. Noble Lords may not agree with the choices we are making, but I hope that they recognise that our proposals represent a genuine attempt to ensure that people can get access to legal advice on the most serious issues.

To cover one or two points raised, the noble Lord, Lord Howarth, asked about when a benefit appeal is lost and people are facing homelessness. Where the client loses their benefit appeal and subsequently faces action for rent or mortgage arrears that place the home at risk, legal aid will be available, including, for example, to negotiate with mortgage lenders, but it will not be available for welfare benefit matters. Where the benefit dispute is ongoing at the point where repossession action is taken, legal aid will be available in relation to the action. Legal aid could be used to argue for adjournment of possession, as I said.

On the point made by the noble Lords, Lord Beecham and Lord Best, and others, that changes will mean more serious cases resulting in homelessness, we recognise that early advice can be helpful in a range of contexts. However, as I said, people need general advice. Where a debt or welfare benefit problem places individuals at risk of immediate risk of loss of their home due to, for example, rent arrears, legal aid will be available.

The noble Lords, Lord Howarth and Lord Beecham, both referred to the research by Citizens Advice, which has certainly not been short of resources for its lobbying activities. I note what Citizens Advice states in Towards a Business Case for Legal Aid. Although we have read that research with interest, it did not contrast the outcomes of legal aid recipients with those who did not receive legal aid, so our view is that the evidence is not sufficiently robust to allow the conclusions drawn about the impact of advice. That said, we recognise that early advice can be helpful in a range of contexts. However, what people often need is general advice. We propose focusing our limited legal aid resources on those cases which need it most: disabled people in dispute with local authorities about care needs; people detained under mental health legislation; or parents who are facing the removal of their children by social services.

We do not believe that we have got it very far wrong on housing, and I hope that the noble Lord will withdraw his amendment.

[Lord Howarth of Newport]

Will the noble Lord be kind enough to write to us with a detailed refutation of the specific figures that Citizens Advice has put forward in all good faith and on the basis of careful research? That is important and a lot of people would be interested.

[Lord McNally]

I will consider that matter, but quite honestly, during the passage not just of this Bill but of every Bill, lobbying organisations produce reports—as the noble Lord says, in all good faith. To answer every one might overburden a relatively small department working on a small budget. I will consider that request.