Access to Justice

Debate between Oliver Heald and Justin Madders

Wednesday 11th January 2017 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. First, I congratulate my hon. Friend the Member for Wolverhampton South West (Rob Marris) on calling this incredibly important debate. Although it is a broad debate, I will focus on an area that I have spoken about many times before and sadly find myself having to speak about again—one that, as a former employment lawyer, I know well: the devastating impact that the introduction of employment tribunal fees has had on access to justice.

I will not repeat the entire history of this issue—the Minister knows the landscape well—but I will summarise. In July 2013, for the first time a person had to pay a fee before they could proceed with an employment tribunal claim—two fees, in fact: one at the commencement of the claim and one before the final hearing. Following the introduction of fees, the number of single employment tribunal claims plummeted by 67%, from an average of 13,500 per quarter to just 4,400 per quarter. One of the oft-cited reasons for the introduction of fees was that it would deter vexatious and weak claims, yet the proportion of unsuccessful claims has remained stable. It is therefore clear that all that the fees system has done is deter people who have valid claims from upholding their rights. That conclusion is shared by the cross-party Select Committee on Justice and a range of specialist organisations that submitted evidence to it, including Citizens Advice, Maternity Action and the Bar Council.

The Justice Committee reported that many judges say that they now hear no money claims at all. The report says:

“Prior to the introduction of fees money claims were often brought by low paid workers in sectors such as care, security, hospitality or cleaning and the sums at stake were small in litigation terms but significant to the individual involved. There are few defences to such claims and they often succeeded.”

Have all those employers suddenly changed their behaviour and is everyone now getting paid correctly? No. What is far more likely is that those whose wages are being docked are simply saying, “Well, it will cost me more to go to a tribunal to recover this money than the amount I have lost, so I can’t afford to take that risk.” That, to quote the Prime Minister from just a few days ago, is an example of the

“everyday injustices that ordinary working class families feel are too often overlooked.”

[Sir Oliver Heald]

Is the hon. Gentleman not forgetting the other measure that was taken, which was to require claimants to go to ACAS? Is he not aware that the number of cases going to ACAS has gone up from 23,000 a year to 92,000 a year, and that the effect has been that about half of the cases have been resolved or dealt with in a way that meant they no longer need to go to the tribunal—so 45,000 cases are dealt with for free?

[Justin Madders]

The Minister presents those statistics but forgets to mention that the arbitration system with ACAS was actually introduced some time after employment tribunal fees were introduced, so it does not explain the initial drop-off. The Justice Committee said the claim that this has diverted more people to mediation was

“even on the most favourable construction, superficial.”

It is true that there has been an increase in the number of cases going to conciliation, but just 16% have been formally settled by ACAS, 19% proceeded to a tribunal case and 65% were neither settled nor proceeded to a tribunal. What has happened to all those cases?

Despite the overwhelming evidence, the Government refuse to acknowledge the problem, as we have just heard. Last month, I challenged the Under-Secretary of State for Women and Equalities over the outrageous fact that only 1% of women discriminated against at work brought a claim to tribunal. I asked whether she would make representations to the Ministry of Justice about the raft of evidence suggesting that tribunal fees deter genuine complaints. The reply I got was:

“There is no doubt that the number of tribunals has gone down, but in actual fact there is good news here”.—[Official Report, 8 December 2016; Vol. 618, c. 363.]

I fail to see what that good news is.

Perhaps the Government’s own internal review will tell us what has happened to the many complaints that have disappeared through ACAS, if they ever decide to release it. It was commissioned in July 2015; the review was completed within a few months, and it has been gathering dust for over a year now.

[Sir Oliver Heald]

On a point of order, Mr Davies. The hon. Gentleman is putting forward as an assertion of fact something that is completely incorrect. Is that in order?