Riot Compensation Bill

Lyn Brown Excerpts

Friday 5th February 2016 Commons Chamber

[Lyn Brown (West Ham) (Lab)]

If it is okay with you, Mr Speaker, I would like to associate myself with your kind and apposite remarks about Harry. My sympathies go to his wife Gill and all those who mourn him. My friends on these Benches are in real shock and great sadness at his passing.

I rise to speak to amendments 1, 2 and 3, which have been tabled by the hon. Member for Dudley South (Mike Wood). I shall also speak to amendment 8, which has been tabled by my excellent right hon. Friend the Member for Tottenham (Mr Lammy).

Amendment 1 would ensure that victims of rioting had at least 42 days in which to make a claim for compensation and then a further 90 days in which to submit the necessary evidence. We support that amendment. The Bill is about supporting riot victims, and in order to do that we need to give them adequate time to complete claims for compensation. Can any of us imagine trying to rapidly process a legal claim when our papers have been destroyed, we have no access to our home or business, and our life has been completely and utterly turned upside down? That is exactly the situation in which many riot victims found themselves in 2011. That situation was made all the more difficult by the fact that so many of the victims were unaware that they were entitled to compensation. They needed the time to get their affairs in order.

In 2011, the Home Office appeared to recognise that a short time limit on claims was unfair, and extended the time limit from 14 to 42 days. Amendment 1 gives us certainty that any future victims will be guaranteed at least 42 days in future. That has to be right. The amendment also provides an additional 90 days for victims to gather the necessary evidence to complete their application for compensation. Three months’ breathing room seems entirely appropriate, given the total upheaval that can be wrought to businesses and individuals by the kind of rioting we saw.

My right hon. Friend—the magnificent Member for Tottenham—spoke movingly in Committee about some of the challenges faced by his constituents in 2011. Many had English as a second language, some had their health devastated by the riots, and all had their daily routines completely shattered. They desperately needed more time to put their lives back together before they could deal with compensation claims. I congratulate him on raising the issue of time limits in Committee. If the House accepts amendment 1 today, he will have played a vital role in ensuring that any future victims of rioting are not left in the lurch, as his constituents and those of my hon. Friend the Member for Croydon North (Mr Reed) were.

[Mr Lammy]

My hon. Friend will know, perhaps more than anybody else in this House, the juxtaposition between shopping centres such as Westfield, where there is big business, and small businesses, which in a constituency such as hers are often run by people newly arrived in this country, making the very best of their lives. Her experience in this matter needs to be recorded.

[Lyn Brown]

My right hon. Friend is absolutely right—the businesses that were affected in my constituency were small businesses along the Barking Road in Canning Town and, indeed, some in Green Street. As he rightly says, they are not like the businesses in Westfield that have massive resources behind them to enable them to make the claims, clean up quickly and get on with their economic lives.

Amendments 2 and 3 would ensure that victims were entitled to compensation for costs incurred as a result of having to seek alternative accommodation. We support those amendments too. Families should not be pushed into severe financial difficulty because their homes have been rendered uninhabitable by circumstances way beyond their control. Some families affected by the 2011 riots were not able to live in their homes for months, and some for years afterwards, putting them in severe financial difficulty. That was particularly the case in the private rented sector, but it also applied to some homeowners. We all know how expensive short-term rented accommodation can be, particularly here in London. It is only right, therefore, that that should be accounted for in the compensation awarded. I therefore urge the House to accept amendments 2 and 3.

Finally, let me turn to amendment 8, which would ensure that any money claimed in compensation for emergency relief in the immediate aftermath of a riot did not lead to a reduction in the amount of compensation a claimant might receive. It is shameful that this sort of deduction was made in 2011. We support the amendment, because people putting money into charity buckets to help their neighbours through the turmoil of rioting do not expect the compensation due to those victims to be reduced as a result of their kindness. I am not surprised that my hon. Friend the Member for Croydon North reports that his constituents were aghast that their donations led to a reduction in the compensation doled out.

My right hon. Friend the Member for Tottenham also argued in Committee, I thought convincingly, that we do not want to discourage big businesses from helping out small businesses with which they share a high street. Deducting payments as a result of charitable giving would have precisely that unwelcome and rather unpleasant effect. I urge the House to accept amendment 8 so that, in the unwelcome event of future riots, the police and charities can work together to help communities, rather than treating support as a zero-sum game.

I heard what the hon. Member for Dudley South had to say on that matter, but I now look forward to hearing from the Minister on these issues, because I am sure he is going to make us very happy today.

[The Minister for Immigration (James Brokenshire)]

I, too, want to associate myself with your comments, Mr Speaker, following the sad loss of Harry Harpham. Members throughout the House can all say that Harry was a dedicated public servant. Although we had the privilege of having him in the House only for a short time, he clearly served with distinction in his community, having sat on Sheffield City Council, and he was dedicated to public service. The fact that as recently as 20 January, Harry was here at Prime Minister’s questions standing up for constituents on an issue he believed in, Sheffield Forgemasters, underlines the sort of person he was, the dedication he showed and the fact that he always wanted to stand up for his constituents. The whole House will wish to pass its condolences, thoughts and prayers to his wife, Gill, his children and his whole family, his friends, colleagues and everyone who knew him and who mourns his loss.

I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on the manner in which he has sought to advance the Bill. He has clearly reflected on the helpful debates in Committee, to which the Minister for Policing, Crime and Criminal Justice responded. The Committee worked on themes that were started on Second Reading. I believe that my hon. Friend’s amendments are helpful additions and clarifications to the Bill.

Amendment 1 deals with the time limits, which are set at not less than 42 days and 90 days respectively for lodging claims and producing detailed evidence. That is the right approach to the lodging of an initial claim, and then it is right to allow more time for detailed information to be provided. We support placing those minimum requirements in the Bill.

For clarification and for the further assurance of right hon. and hon. Members, I underline that there might be some exceptional circumstances in which more time is required, perhaps when a claimant falls ill and cannot meet the deadlines, when evidence has been destroyed or cannot be accessed owing to riot damage, or when final cost estimates are contingent on other processes such as planning permission or some other regulatory requirements. We expect the regulations sitting alongside the Bill to provide some flexibility in extenuating circumstances and to allow extensions of time, while recognising the framework and the statutory minimums set out in the Bill.

Amendments 2 and 3 deal with payments for alternative accommodation. They will allow compensation to be paid to uninsured individuals whose home has become uninhabitable as a result of a riot, to cover the cost of alternative accommodation. Amendment 3 makes it clear that regulations may provide for further details of considerations to be taken into account when such claims are made, as well as the length of time for which such costs may be covered.

During the passage of the Bill, Members have highlighted a number of cases in which their constituents had suffered significant hardship following the 2011 riots. We have certainly heard that from the right hon. Member for Tottenham (Mr Lammy) and the hon. Member for Croydon North (Mr Reed).

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The Bill strikes a sensible balance between ensuring that the vast majority of individuals and businesses are fully compensated and that the public purse does not have to pay out on high-value claims exceeding £1 million.

[Lyn Brown]

Amendments 4, 5 and 7, and their consequential amendments, have been tabled by my magnificent and right hon. Friend the Member for Tottenham (Mr Lammy). All the amendments pertain to the compensation cap. As has been said, the Bill caps the total amount that can be paid out in a single compensation claim to £1 million. Amendment 4 would remove the compensation cap, amendment 5 would increase it and amendment 7 would ensure that it is assessed every three years by Parliament.

The Opposition Front-Bench team have a number of concerns about amendments 4 and 5. We therefore suggested in Committee that, if the cap is raised, the Home Office should be liable for costs greater than £1 million. That would spread risk and ensure that police forces are not made financially vulnerable by circumstances that, by definition, are beyond their immediate control. If the House accepts amendments 4, 5 and 7, the Government might wish seriously to consider that proposal.

Amendment 7 would require Parliament to set the compensation cap, and to assess the level of the cap, every three years. We support the amendment because too low a cap—especially in London—may lead to increased insurance premiums in areas afflicted by rioting. We would not want communities and high streets to be damaged by this legislation, and a regular review would allow us to act on the basis of evidence.

It is important to continue to assess the compensation cap. The Bill needs to balance the interests of the community, the police, the insurance industry and the taxpayer. We must ensure that communities are protected and victims are compensated, while not asking the police to write a blank cheque. The compensation cap goes right to the heart of that task. It is right that the cap is continually assessed and that the House plays a central part in that.

I therefore urge the Minister, who has already done remarkably well this morning, to give us some assurances and some comfort, particularly on amendment 7. You know, Mr Deputy Speaker, he is fast becoming a favourite.

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[Mike Wood]

The right hon. Gentleman makes the point that I was about to move on to. Although the initial three to five-year period provides an important chance to reflect on the early years and to consider whether all the commas are in the right place and all the details are right, it is important that regular reviews take place after that period. I hope the regulations will allow for such reviews. If there is a repeat of anything like what happened in August 2011, it is inconceivable that there would not be a review. That should be a given. Outside of the times of serious riots—which, of course, we hope will last many years or even decades—it is important to have some sort of periodic review, but I do not believe that there is a particular case for this Bill to carry a specific provision for post-legislative scrutiny. As I have said, such a provision could be triggered by a fairly small and limited disturbance, but we must make sure that it does not take another 130 years before we next review whether the legislation is working.

[Lyn Brown]

I completely get where the hon. Member for Dudley South (Mike Wood) is coming from—frankly, if I were the Minister in charge of his Bill, I would encourage him to say exactly what he has just said—but I am worried about where we are going with this. It has taken us 150 years to revisit the issue and there have been a number of disturbances—nay, riots—in this country during that time, and even when there have been really big riots, the system of dealing with victims has been wholly inadequate. I am concerned that we will find ourselves in 150 years’ time—well, we won’t, because we’ll be dead by then—saying, “Oh, yeah, we didn’t have very effective legislation. We had things for those old-fashioned things called cars, but the hover vehicles we’re driving around in now aren’t covered by this Riot Act.”

I say gently to the hon. Gentleman that even minor disturbances can wreck lives. We must make sure that any future Government have not only warm words to say to victims of riots, but effective legislation on the books so that they can help those victims effectively. I gently say to the Minister, who I have got a lot of time for—he has done an excellent job so far this morning—that we need to be more warm in our consideration of this Bill, so that we can ensure that the people who come after us in 150 years do not say the same kinds of things that we have been saying, with a little frustration, over the past few weeks.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Minister, follow that!

[James Brokenshire]

We are verging the language used on Second Reading when we discussed how the terms of the existing Riots (Damages) Act 1886 are not fit for the purpose of providing compensation in the event of a riot. The Bill provides good flexibility. It is important to recognise that it enables matters to be dealt with by way of secondary regulation. If certain changes are required, we would not necessarily have to address them through primary legislation, with all that that entails. Indeed, as has been discussed, the Bill enables us to increase the overall cap by negative procedure.

In essence, our debate on amendment 10 is about whether primary legislation should include a mandatory requirement to review. In our judgment, that is not necessary, because of the flexibility given by the Bill, which has been well debated. The scrutiny the House has given it means that it is now fit for purpose for the years ahead, because of the latitude it contains. It enables changes to be made in a relatively straightforward way through the processes and procedures of this House and the other place.

The amendment addresses the question of the regularity of scrutiny and whether a review should be undertaken every time some form of riot takes place. In our judgment, that is bureaucratic and we question whether it would achieve the desired result. It is always open to Government to review legislation, and it is absolutely right and proper that they keep it under close review. That may not necessarily happen on a timed basis, but an event may occur to which the Government will respond—indeed, the House may prevail on the Minister in question to do this—by conducting a review of the legislation, to judge whether it is still appropriate. The Bill does not prevent that flexibility—far from it. It can still happen.

My hon. Friend the Member for Dudley South (Mike Wood) has spoken of the general approach to reviewing all legislation within three to five years of the date of Royal Assent. Therefore, in any event, come what may, there will be an assessment of the Bill. Rather than having fixed points, the Bill provides flexibility to make changes. The regulatory framework enables the issue to be contemplated in that way—it provides latitude—and that is the appropriate way to deal with it. Indeed, it is right and proper that, if such events were to happen, the House could say to the Government, “Look at the Bill now. This is the right time to do it,” without that being reflected formally in the Bill. For those reasons, we judge that the amendment is not needed.

[Lyn Brown]

rose—

[James Brokenshire]

I will, in due deference, give way to the shadow Minister.

[Lyn Brown]

Very brave. I say gently to the Minister that I was a bit flabbergasted by the length of time that passed before the introduction of such a Bill. There was a period of unrest in the 1980s, during my early childhood, and I can recall being in a restaurant in Leicester Square on my way to a concert during the poll tax riots. I am surprised, therefore, to be debating a Bill on a matter that has not been revisited during that time. Given that these things happen, given that there can be long periods of time between such occurrences and given that our predecessors did not see fit to revisit the legislation despite some fairly appalling riots in our capital city and elsewhere, why does the Minister genuinely believe and take comfort from the fact that the Bill is somehow different, and that 150 years will not pass before it is revisited?

[James Brokenshire]

The hon. Lady makes a fair point. I am sure that anyone who has been caught up in a riot, and who has suffered loss or damage as a consequence, feels that hugely keenly. We are talking not just about the immediacy of the situation and the fear that it creates, but about what that means in restoring a life, putting property back into place and dealing with adverse effects on a business. That has been at the heart of our debates on the Bill, and that is why I welcome and strongly endorse the approach of my hon. Friend the Member for Dudley South in bringing forward the Bill and seeking to address the problem.

There are a couple of points that I would make. First, the Bill has been drafted in a manner that allows greater latitude than the Victorian legislation. I return to the point about not requiring primary legislation. Dealing with things in secondary legislation gives greater latitude and flexibility to make changes to the regulatory framework more swiftly. That reflects the fact that other items may need to be covered, or the cap may no longer be appropriate. The Bill provides a real benefit in offering that level of flexibility.

Secondly, the hon. Lady made a point about individual occurrences and events, and she pointed to some serious incidents that might have made a review appropriate. The latitude provided by the Bill lends itself well to that, because it will not be necessary completely to recast primary legislation. Some riotous disturbances may not lead to a significant number of claims, so it might not be appropriate to trigger a formal procedure such as that proposed in the amendment. The student riots in 2010, for example, involved significant policing challenges but attracted fewer than five compensation claims. We have the ability to carry out such a review, but we do not need anything with quite such a rigid structure. I suggest to the House that the Bill gives the Government the flexibility and the latitude that they need. In that context, I hope that the right hon. Member for Tottenham will be minded to withdraw his amendment.

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[Lyn Brown]

The Opposition will support the Bill this morning, as we have throughout the legislative process.

The 2011 riots were a traumatic event for London and for other cities and towns up and down the country. More than 5,000 crimes were committed in a few short days, five people lost their lives, and it is estimated that the material cost of the London riots alone was over half a billion pounds. They were truly devastating. The unfortunate truth is that when those wounded communities needed help to get back on their feet, the help that was available proved utterly inadequate.

My magnificent right hon. Friend the Member for Tottenham (Mr Lammy) has demonstrated to the House yet again this morning his true understanding of and commitment to his constituents. His passionate and well-spoken words showed that he understands the devastating impact the riots have had on the wider community. Frankly, it was not possible for the Government to respond as quickly as was needed to that impact.

I also pay tribute to my hon. Friend the Member for Croydon North (Mr Reed) for his work on this issue. His constituency was hit hard by the 2011 riots and he has worked tirelessly to highlight the difficulty that his constituents have had in receiving the compensation to which they should have been entitled. He used the Freedom of Information Act to show that three years after the riots, 133 victims in London were yet to receive a penny in compensation. Just 16% of the requested compensation had been paid out at that point.

Those victims of rioting must have felt really let down, especially considering the Prime Minister’s promise that they would not be left out of pocket by those unprecedented actions. Without the tireless work of my hon. Friend the Member for Croydon North and others, including my right hon. Friend the Member for Tottenham and my hon. Friend the Member for Ealing Central and Acton (Dr Huq), I doubt that the Bill would be before the House today, but it is and that is to be celebrated.

To be fair to the Government, they recognised the problems that people had had in receiving compensation and commissioned an independent review. The Kinghan review was published in 2013 and, as we have heard, the Bill before us has the support of the Government and takes up many of the review’s recommendations.

I warmly congratulate the hon. Member for Dudley South (Mike Wood) on making such an important contribution so early in his parliamentary career. I hope his father forgives him for the horse story, which I remember well. How amazing it is that an Act will be published in his name. I hope that he celebrates this momentous event suitably over the weekend. I know that he has had a lot of support from the Government, which makes these things a lot easier and gives a Bill a fair passage. None the less, it takes a lot of work and commitment to get a Bill through, and I congratulate him on being equal to that task—congratulations!

I have to thank the Minister for being so accommodating, unlike some other Ministers. I look forward to seeing him opposite me when we consider further Bills, because he has been really quite good.

I thank my Labour colleagues who have worked on the Bill—my hon. Friend the Member for Birmingham, Erdington (Jack Dromey), who led scrutiny of the Bill in Committee, and my hon. Friends the Members for Ealing Central and Acton, for Birmingham, Ladywood (Shabana Mahmood) and for Croydon North, and my right hon. Friend the Member for Tottenham, who also sat on the Committee. They have all helped to improve the Bill.

The amendment that the House accepted today to give riot victims a guaranteed time in which to claim compensation was the result of probing by the Opposition in Committee, so we are grateful to the hon. Member for Dudley South and the Government for accepting it. The Bill is better for it.

We are happy to support this legislation. Like the hon. Member for Dudley South, I hope and pray that it is rarely, if ever, used because even the most effective legislation for riot compensation can but lessen the terrible pain that is inflicted on communities by looting, violence and wanton damage.