Crime and Courts Bill [HL]

Lord Touhig Excerpts

Monday 2nd July 2012 Lords Chamber

Moved by

[Lord Touhig]

147: Clause 20, page 17, line 23, at end insert—
“( ) In fixing such an amount, and subsequent additions, account must be taken of the person’s relevant weekly income, excluding housing benefit and child benefit, and allowance must be made for the protection of a reasonable financial subsistence level, in the manner used to determine the initial fine.”

[Lord Touhig]

My Lords, this amendment will extend the means-testing system currently used in the calculation of court fines so that it also applies to the calculation of additional costs which, under Clause 20, will be imposed on people as a result of late or incomplete fine repayments.

The rationale behind means-testing in the justice system is laid out clearly in the magistrates’ court sentencing guidelines, which make clear that while financial punishments should cause a degree of hardship, they should not force people below an income level required to meet their most basic needs. Furthermore, they should impact equally upon offenders regardless of their financial situation. On this basis, fines are set as a percentage of the offender’s relevant weekly income, minus child benefit and housing benefit.

However, as the Bill now stands, those who miss payments for whatever reason will be liable for extra costs that take no account of their means at all. Consequently they may be left owing significant sums that they simply cannot afford, even being forced to cover repayments using benefits that were protected in the calculation of the initial fine.

This has raised serious and urgent concerns among charities and others working with vulnerable individuals and families. The Catholic Children’s Society in Westminster has said that imposing costs on parents without taking account of their financial means presents a serious risk to their children. It states:

“Child benefit exists to support children’s basic needs and is quite rightly excluded from the calculation of fines … It would be iniquitous to undermine this by adding further non means-tested costs that could jeopardise children’s wellbeing … Ultimately, under the government proposals children will suffer because of their parent’s inability or failure to meet payment deadlines. This is neither a just nor acceptable situation”.

If the current system of means-testing is applied to the new financial penalties outlined in the Bill, such a situation can easily be averted. Offenders with dependent children will still be penalised for not meeting fine payments in full or on time, but the sanction will protect the amount required for meeting those children’s essential needs. Similarly, all those required to make extra payments, regardless of their family situation, will maintain the basic amount needed to cover fundamental costs such as food and housing.

It should be emphasised that, with basic subsistence levels being accounted for in this manner, the Government’s aims of incentivising timely payment and reducing the cost of recovering fines will not be undermined. In fact, with means-tested amounts as opposed to arbitrary or standard sums being imposed, repayment may be more likely, as people will be subject to payments that they can realistically meet rather than face mounting debts that they may have no real chance of ever paying off. Equally, by maintaining safeguards against forcing people into unsustainable financial situations, the public purse will be protected from potentially significant expenses in the long term.

In response to the points that I made at Second Reading, the Minister, the noble Lord, Lord McNally, said that,

“if the offender provides accurate means information at the outset of their engagement with the justice system and keeps to the payment plan set out by the court, enforcement action will not take place”.—[Official Report, 28/5/12; col. 1067.]

However, as those working on the front line know only too well, in reality a whole array of circumstances prevent people keeping to their payment plans.

I welcome recent government pilot schemes to aid compliance such as text-messaging reminders when payments are due, but these will not provide a universal fail-safe against offenders defaulting on amounts owed, nor are they intended to do so. As I have previously stressed, people should face up to their financial responsibilities and should not be exempt from covering any extra costs that the Courts and Tribunals Service incurs as a result of their deviation from their agreed payment plan. However, the principles of equality and basic subsistence that underpin other financial penalties must apply here. I hope, therefore, that the Minister will take that on board and consider extending the current means-testing system to apply to the new financial penalties as outlined in the Bill. I beg to move.

[Lord Elystan-Morgan]

My Lords, I support the amendment proposed by the noble Lord, Lord Touhig. Clause 20 as I understand it writes new Section 75A into the Magistrates’ Courts Act 1980. Under that new section, the costs incurred in the collection of a fine should be added to it. No discretion is given to a magistrates’ court, once the machinery has commenced, to decide whether to make an order. The Bill states quite baldly that those costs shall be added. There is no question, therefore, of a court saying, “Well, in the circumstances, we do not think that it would be appropriate to make an order here”. Once those basic facts have been proven, the machinery runs in a way that is less than fair.

--- Later in debate ---

I hope that, in the light of those explanations, the noble Lord will be prepared to withdraw his amendment.

[Lord Touhig]

Would I be right in thinking that, without any form of means test for the additional fine, it could be greater than the original fine?

[Baroness Northover]

In theory, I suppose that that could be the case. The important issue here is that the offender stays closely in touch with the fines officer. If an offender has a very small fine decided because of their circumstances, ways to pay that should be sorted out and the offender assisted in that regard. Only a very small fine would be overtaken by the cost of pursuing it, one would imagine. As I said, it is extremely important for the offender and the fines officer to work through the implications of the decision taken by the court.

[Lord Touhig]

My Lords, I must say that I am somewhat disappointed by the Minister’s response. I entirely agree—I said it at Second Reading and I have said it today—that people should be responsible for paying the debts that are due. If they are fined for an offence, they should be responsible for paying those debts. However, as the Minister said, people often live chaotic lifestyles. We think that it is right that the guidelines of a magistrates’ court make it clear that, although the fine should provide a degree of hardship, it should not leave people with an income on which they cannot survive. Surely we should protect children and the person’s ability to pay for food and housing. Those are three basic things: children, food and housing.

[Baroness Northover]

I remind the noble Lord that I said that, if offenders find themselves in the circumstances that he describes, they can go back to the court and the administration cost, too, can be varied or set aside. It is not as cast-iron or concrete as the noble Lord suggests.

[Lord Touhig]

I apologise. I accept the point that the noble Baroness made in her earlier response. The point I seek to make is that if we think that the guidelines to the magistrates should take account of those elements, surely it is right that any additional fine should take account of those elements. At the end of the day, because of the lifestyles of some people, some fines will never be paid. That is wrong, but they will not. The taxpayer will end up paying more if children are not properly cared for. Social services will be involved. Someone will lose a house and have to go into emergency accommodation. The Government are storing up a problem here which could be avoided by simply saying, yes, if a form of means testing is used to determine the initial fine, any additional fine should have the same application.

I regret that the Government do not see it that way. There is clearly much work that we must do as missionaries to persuade the Government, before the Bill passes, of the error of their ways. With those few remarks, I beg leave to withdraw the amendment, but give notice that I shall come back to it at a later stage.

Amendment 147 withdrawn.