Points of Order
Rob Marris Excerpts(7 years, 7 months ago)
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Mr Speaker
I am grateful to the hon. Gentleman for giving me notice of his point of order. I do appreciate his concern. The content of Ministers’ answers is, of course, not a matter for the Chair. That is a matter exclusively for the Minister giving the response. However, the hon. Gentleman references my repeated exhortation to Ministers to provide timely and substantive responses, an exhortation in which I am regularly joined by the Leader of the House. Many Ministers attach a premium to adhering to that principle and expectation. I agree that it is unsatisfactory if the Government are unable to give a substantive answer to a named day question tabled well before Prorogation. No doubt the concern articulated by the hon. Gentleman has been heard on the Treasury Bench. In so far as he further seeks my advice, it is encapsulated in one sentence: the hon. Gentleman should seek to speak to the Leader of the House, sooner rather than later.
Prisons and Courts Bill
Rob Marris ExcerptsMonday 20th March 2017
(7 years, 9 months ago)
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Elizabeth Truss
I can assure the hon. Gentleman that he will not have to wait long for an answer to his question. I agree that the system is in need of reform, and I will bring forward a consultation before the Easter recess. I look forward to hearing his contribution to it.
Rob Marris (Wolverhampton South West) (Lab)
Will the Secretary of State tell the House where the consultation’s tariff figures for whiplash came from? What evidence was there for the Government to put those figures in the consultation document?
Elizabeth Truss
The hon. Gentleman will have noticed that we have changed the figures in response to the consultation document. Those were judged to be fair and reasonable for the level of injury that we are talking about in this case.
Richard Burgon
I agree with the point that my hon. Friend so eloquently makes. Injured people should not be made to pay the price of the behaviour of the unscrupulous minority—the companies that engage in the practices she describes.
The Secretary of State started her speech by explaining how the Bill introduces a statutory purpose for prisons to
“protect the public…reform and rehabilitate offenders…prepare prisoners for life outside prison; and…maintain an environment that is safe and secure.”
Of course we agree with those aims, but most people believe that they are what prisons are meant to be doing already. It is crystal clear that those things are not happening today. The main problems in prisons cannot be disputed: violence, drugs, overcrowding and understaffing. To combat those threats effectively, we need a plan for order—a plan to reduce the demand for and supply of drugs, to manage the prison population, and to recruit and retain prison officers. Where is any of that in the Bill? Where are the practical measures to realise those goals? We will be returning to those issues in Committee.
Rob Marris
Let me try to help my hon. Friend because there is a bit of a theme running through the Government’s approach. Ironically, given that we are considering the Prisons and Courts Bill, the Government’s approach to evidence is somewhat cavalier. Most of us would accept there is likely to be cause and effect between cutting 6,500 prison officers and replacing them with only 2,500, and the terrible state of our prisons; and between the introduction of massive employment tribunal fees and a lack of access to justice. Now we have bizarre compensation tariff proposals for whiplash with no evidence of where the Government got their figures from, but just an assertion from the Secretary of State that they believe in fair compensation. Well, I believe in Santa Claus as well.
Richard Burgon
My hon. Friend puts it very well indeed. Evidence is required in court and in this place, and the evidence to back up some of the Government’s proposals is lacking. I will say more about this later, but there is a similar situation in respect of the review of employment tribunal fees. In effect, it says, “There is nothing to see here,” despite evidence showing that there has been a 70% reduction in the number of cases brought to those tribunals.
Richard Burgon
That programme is certainly worth while and welcome. I have been arguing that the Bill should refer specifically to such practice.
We need to know more about what the Secretary of State’s overall responsibility for the statutory aims will mean in practice. Who will decide whether she is fulfilling her responsibility? We welcome the additional powers for the inspector of prisons, but the inspector’s report will mean little, if not nothing, if its recommendations are simply ignored. As we have heard, the Bill will require the Secretary of State to respond within 90 days. It will be interesting to know how that time period was decided, but beyond responding to a report, what else will she be required to do?
Many stakeholders tell me that a failure to take any action in response to independent monitoring boards’ reports and inquest jury verdicts has contributed to the prisons crisis. The recent tragic death of Dean Saunders is a sad case study of what can go wrong when mental health issues and our prison system collide. Has the Secretary of State considered whether she or prison governors should be required to respond to such findings? Could the role of the governor be more effectively scrutinised through a system of peer-to-peer review across the prison estate—whether public or private?
The urgent notification system is welcome, but how did the Government arrive at the 28-day time limit for a response? Does the concept of urgency not demand a shorter period? There have been past attempts to put the prisons and probation ombudsman on a statutory footing. Perhaps that is now within reach, but that is all the Bill will achieve in this regard. What thought did the Secretary of State give to expanding or augmenting the ombudsman’s powers? There is nothing in the Bill that addresses the need to improve the experience of and care for those who come to prison with mental health problems, or that addresses whether prison is even the right place for many of them in the first place.
Blocking the use of unauthorised mobile phones in prisons is clearly an urgent task, which we of course fully support, but other measures could be taken to complement the innovation in the Bill and reduce the trade in mobile phones. Committed and hardened criminals will seek out mobile phones to try to continue their criminal enterprises and activities from inside our prisons. For those prisoners who just want to phone home or phone a friend, greater access to affordable pay phones for monitored calls will help to reduce the demand for mobiles. Currently, some prisons have pay phones in cells, but most have pay phones only on the prison wing, which means that, at association time, the prisoners end up queuing to use the phone, and they may not get to use it before their association time is up. Better access to affordable pay phones and privacy from other inmates will reduce the demand for mobile phones. We welcome the Government’s measures to block the unauthorised use of mobile phones.
Developing and using an effective way of testing for psychoactive substances is also vital. However, that alone will not deal with the demand and supply of those substances. Recent reports from the inspectorate have found that overcrowding and a shortage of prison officers means that intelligence-led drugs tests are, sadly, a rarity. The best and most effective way of reducing the demand for drugs is to ensure a full and purposeful programme for all prisoners so that their time in prison is occupied.
Many of these problems with which we now grapple can be linked with the disastrous decision to cut prison officer numbers by 7,000—or 30% since 2010. The public sector pay freeze has made recruitment more difficult and without sufficient numbers of officers in prisons, order cannot be maintained. Officers do not have time to mix with prisoners and gather intelligence or to conduct searches, fabric checks of cells, and drugs testing.
Rob Marris
In that context of insufficient staff, does my hon. Friend join me in welcoming the establishment of a prisons and probation ombudsman with considerable powers, including one to direct the form of the response to be made by the Secretary of State to a report from the ombudsman? It is a considerable power. To have a strong ombudsman who would be prepared, if necessary and in certain circumstances, to face up to the Secretary of State is a powerful protection when that ombudsman investigates deaths as well as other complaints.
Richard Burgon
That is a very important point. We support a strong ombudsman, and we want reassurances that the Secretary of State will have to not just respond to the ombudsman, but take action on the basis of the findings of the ombudsman.
Prisons officers to whom I speak want to help offenders turn their lives around. They want more responsibility and to be part of a valued profession. They do not want to be viewed just as turnkeys, but successive Conservative Secretaries of State have diminished their role.
As mentioned earlier, the Government have set out plans for league tables and greater autonomy for prison governors. One wonders why the Government are persisting with the league tables idea when it was first dismissed by the chief inspector of prisons, Peter Clarke, at the Justice Committee in January. The Prison Governors Association has said that league tables
“will not achieve anything other than to risk demoralising staff and of unfairly judging the senior management team”.
Perhaps that was what prompted the Under-Secretary of State for Justice, the hon. Member for East Surrey (Mr Gyimah), to tell the Justice Committee that it would be performance data. The PGA also fears increased governor autonomy coinciding with increased responsibility for the Justice Secretary may result—heaven forbid—in blame being pushed its way. It says:
“Governors are being asked to sign up to agreements, which will become effective in just five weeks, with insufficient detail on what they will be held to account for. The risk is that the prison reform bill will become the prison blame bill”.
Further inroads into overcrowding and chaos could be made by considering who is being remanded and why, whether some offenders with mental health problems need a different approach and by dealing with the backlog of imprisonment for public protection prisoners. None the less, we see insufficient action to address any of those things. We were told that this Bill would transform the lives of offenders, but just saying that that is the case will not make it so. Transforming lives means first transforming the system.
I shall return to the subject of courts and tribunals, which I touched on earlier. Since 2010 Government legal aid cuts have robbed thousands of the legal representation that should be their right. Many of them are those who are most in need of legal representation—for example, people who are in debt, claiming welfare benefits, facing marital breakdown or experiencing housing problems. In 2012-13, 724,243 civil law cases were funded by legal aid; after the provisions of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 were introduced, that figure plummeted to 258,460. I realise that some Government Members will toast those figures as evidence of a job well done, but in reality what are they but proof of access to justice denied?
The coalition Government introduced employment tribunal fees. That measure resulted in a 70% reduction in the number of cases brought. The long delayed review I mentioned earlier essentially concluded, “There’s nothing to see here.” It said:
“While there is clear evidence that ET fees have discouraged people from bringing claims, there is no conclusive evidence that they have been prevented from doing so.”
If only illegal treatment by employers flouting the law of the land had been reduced by 70%. Instead, it is the number of cases that has fallen by 70%.
Richard Burgon
That is a very useful intervention because it makes clear the Conservative view of access to justice. Something for nothing? If somebody has not been paid the national minimum wage, why should they be charged to get the money back? If someone has not been paid their proper wage or has experienced disability, maternity or pregnancy-related discrimination, it is outrageous to say that they are seeking something for nothing.
That intervention takes me back to when I was an employment lawyer acting for the people the hon. Gentleman dismisses in such a cavalier fashion. I remember the first time I lodged a case after the coalition Government introduced employment tribunal fees. On the Employment Tribunal Service website, it said, “Customer, please enter your credit card details.” Is that not shameful? When we regard citizens who are attempting to assert their statutory rights—rights made in this place, such as the right to the minimum wage and the right not to be discriminated against at work—primarily as consumers, it shows that the priorities of our society and our justice system have been warped by the Government.
Rob Marris
Does my hon. Friend agree that part of the difference is that some Government Members apparently have overlooked the fact that very often employment tribunal cases are brought by people who have no job? They have no income. That is why they are bringing a tribunal case. It is very different from a big commercial dispute, where court fees are paid for access to justice, to charge tribunal fees to people who have no income and no job, and that is the substance of their complaint to the tribunal.
Richard Burgon
My hon. Friend makes an important point. I would also give the example of people being charged employment tribunal fees that exceed the underpayment of the wage about which they are complaining. That really discourages claims.
Richard Burgon
The problem is that the price that is being paid is that of access to justice, and that is unacceptable to the Labour party at least. Are the Government seriously contending that 70% of claims brought before 2013 were somehow fraudulent? If so, that is absolutely outrageous.
Rob Marris
Would my hon. Friend repeat the figures? I thought he said, in round terms, that there were half a million fewer cases after the changes, but the Minister has indicated that 70,000 more cases go to arbitration. That is a big gap—it is still more than 400,000 people who are not getting access to justice.
Richard Burgon
That is completely right. My final point on the subject, before I move on to the closures of courts and tribunals, is that the introduction of employment tribunal fees has harmed not only those who would bring a case, but those who would never dream of bringing a case. If employers know that there is virtually no chance of an employee bringing a case against them if they break the law, it gives unscrupulous employers the green light because they know that the risk of being held to account is so much diminished. This goes to the root of what access to justice is. Legal rights are basically worthless if we cannot enforce them or rely upon them because of lack of resources or for any other reasons.
Two Government programmes earmarked a total of 243 courts and tribunals for closure. This has obvious and long-lasting effects on the principle of local justice. The cuts have led to an increase in the number of people forced to represent themselves. As far back as 2014, figures such as the Lord Chief Justice, Lord Thomas, were warning of the rise in unrepresented litigants—litigants in person. The Justice Committee’s 2015 report into the impact of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 said:
“The result is that the courts are having to expend more resources to assist litigants in person and require more funding to cope”.
We know that, and we know that litigants in person clog up the court system and make it less efficient.
As Members of Parliament, our weekend advice sessions are full of people who need a lawyer, but cannot get one. Ministers seem to treat the involvement of lawyers in litigation or potential litigation as a fundamentally bad thing. That misses much of the point. Those hon. Members who have ever needed to use a lawyer or who have ever been lawyers themselves will know the valuable role lawyers play in dissuading clients from ill-advised litigation, in encouraging settlements that are fair and beneficial to clients where possible, and in shortening the proceedings in court.
In that respect, the prohibition in part 2 on cross-examination by the abuser of the abused is, of course, very welcome. The stark evidence from groups such as Women’s Aid is that this gap in the law was being used as a further means of control and abuse. Despite the fact that we very much welcome this measure, it cannot be left unsaid that the reason this serious problem became so pronounced was the Government’s legal aid cuts, which exacerbated it in a very damaging and profound way, and Resolution—the body of family solicitors—makes that clear:
“The impact of LASPO has led to an increase in litigants in person, meaning we’ve seen a rise in the number of defendants cross-examining those they have abused.”
Let me turn to the subject of modernisation. Few will disagree that the court system needs modernising and digitising—some would say it is in more need of modernisation than this place. There remains too much paper involved, when technology has made it possible for much documentation to be stored, referenced, annotated and amended using tablets and the like. However, technology alone does not demolish barriers to justice, and it can exacerbate the risks. The Opposition favour streamlining justice and reducing unnecessary court hearings, and we recognise that part 2 seeks to achieve that, but as the chair of the Bar Council, Andrew Langdon, QC, has warned, the fact that online courts
“might encourage defendants to plead guilty out of convenience, when in fact they may not be guilty of an offence, no matter how small, risks injustice.”
We have to be mindful of that. In its briefing on the Bill, the Law Society also issued a caution, saying:
“Although we welcome the introduction of these measures as a way to improve efficiency, there are serious risks associated with them in the absence of adequate access to legal advice. Safeguards must be in place to ensure that a defendant is aware of the consequences of indicating their plea in writing and the other measures highlighted above.”
Online courts, again, present the opportunity for a modern and desirable way of using technology to reduce court hearings and, hopefully, to deal with preliminary matters efficiently. However, the Law Society, again in its briefing, cautions that online convictions should be thoroughly tested and reviewed before being expanded. The Opposition therefore hope the Government will be open to amendments that allow for reviews to take place after a specified time. That would seem sensible. Virtual hearings, procedures on papers only, and written plea and mode-of-trial procedures will all need to be reviewed in time. The Government need to give closer consideration to safeguards, and we will seek to put those in place.
On whiplash, the clauses in part 5 will have come as a relief to many. The Government have backed away from increasing the small claims limit across personal injury, and that is welcome. However, they see a personal injury lawyer lurking around every corner—the Minister with responsibility for courts and tribunals even mistook me for one. [Interruption.] There is a former personal injury lawyer behind me—my hon. Friend the Member for Wolverhampton South West (Rob Marris)—although he has only one job now. However, the Association of Personal Injury Lawyers made it clear in written evidence to the Justice Committee that even
“when whiplash statistics are combined with the number of injuries registered by insurers with the CRU”—
the Compensation Recovery Unit—
“as ‘neck and back’ injuries, there has been”,
as I said earlier,
“a significant fall of 11 per cent since 2011/2012.”
Profound problems also exist with the tariff system proposed. As the Government have accepted, the amounts they have set out elsewhere are low. However, they are too low, and compensation must be commensurate with the severity of an injury. If those tariffs are taken together with the increase in the small claims limit to £5,000, no victims of road traffic accidents—not only victims of whiplash—would be entitled to recover legal costs where the compensation did not exceed £5,000. That will inevitably deter people from accessing legal representation and deter genuine claims. The Government should consider ensuring that victims of road traffic accidents are able to recover their legal costs.
We have heard repeatedly—this was touched on earlier—that the proposals in the Bill will lead to premiums reducing by as much as £40 a year on average. The Law Society has questioned the accuracy of these figures, saying that the pass rates on which they are predicated are difficult to predict and it is unclear how the 85% savings rate has been calculated. As my hon. Friend the Member for Wolverhampton South West said, it is a matter of evidence—or, in this case, a lack of it. Most obviously, there is no mechanism by which insurers can be made to pass on any savings to consumers. We hear a lot of insults thrown at the British people about a rampant claims culture and people being on the make and on the fiddle, but a lot less about the behaviour of some insurers in failing to defend weak claims and how much the insurance industry is making out of all this. Only a tiny minority of insurance companies have said that they will pass on any savings. The Government need to take action to win those guarantees.
I look forward to the remainder of this debate. As I said, Labour does not oppose the Bill on Second Reading, but we do lament the fact that it lacks so much. I suggest that the Bill itself must transform if it is to transform.
Oral Answers to Questions
Rob Marris Excerpts(7 years, 9 months ago)
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Rob Marris (Wolverhampton South West) (Lab)
When the Minister replied to the question asked by my hon. Friend the Member for Luton South (Mr Shuker) about safety in prisons, he forgot to supply my hon. Friend with the number. What is the number?
Oral Answers to Questions
Rob Marris Excerpts(7 years, 10 months ago)
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Sir Oliver Heald
Yes. I had a very useful meeting with my hon. Friend, and I can certainly confirm both the points he makes. I am particularly keen to get that skylight fixed for him. I am working hard on that.
Rob Marris (Wolverhampton South West) (Lab)
In his reply to the question from the hon. Member for Boston and Skegness (Matt Warman), the Minister referred to modernising the tribunal system. Does he agree that part of that modernisation should be getting rid of employment tribunal fees, the introduction of which has led to a cut in the number of employment tribunal cases by two thirds and a cut of more than 80% in sex discrimination cases? Can the Minister announce today that those fees will indeed be abolished as part of access to justice and modernising the system?
Sir Oliver Heald
As the hon. Gentleman knows, we have been reviewing employment tribunal fees, and I can say that the publication of that review is imminent. Having said that, there is a difference of opinion across the Chamber on this matter. We think it right that individuals should contribute to the costs of the tribunals. It is also worth bearing in mind that ACAS has increased its workload in employment cases from about 23,000 cases a year—the number it used to conciliate—to 92,000 cases now. The result has been a very large increase in the number of cases that do not then proceed to the tribunal.
Access to Justice
Rob Marris Excerpts(7 years, 11 months ago)
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Rob Marris (Wolverhampton South West) (Lab)
I beg to move,
That this House has considered access to justice.
It is a pleasure to appear in front of you, Mr Davies. I thank all those who sent in briefings and background information, which have been most helpful. I especially thank the law firm where I was a partner for several years, Thompsons. In fact, two other Members who are Thompsons alumni are with us today. Thompsons supported my campaign for re-election 18 months ago financially. I also thank the Law Society of England and Wales, of which I have been a member for three decades or more, and the Association of British Insurers.
Access to justice is a pillar of the welfare state. To me, it is no coincidence that in 1948, the legal aid system in England and Wales was introduced—the same year as the introduction of national insurance and the national health service. It is one leg of a three-legged stool called the welfare state. This afternoon, I will not have time to cover as much information and as many matters as I would like. I hope to run around the block on the small claims limit for personal injuries, soft tissue injuries and whiplash claims, and to touch on employment tribunal fees, legal aid deserts and court closures.
I will start with the small claims limit. In recent years, other jurisdictions with similar systems to ours have looked at raising their small claims limit. In Scotland, the small claims limit was raised in 2007, but all personal injury claims were specifically excluded from that, as colleagues from the Scottish National party who are here today will know. They were excluded principally on the grounds of complexity, because of the need for those claiming for a personal injury to instruct solicitors to obtain expert medical evidence and, quite often, other expert evidence—for example, from an engineer.
When the Scottish system was reformed in 2014, personal injury was still treated differently. In 2014, a new procedure was introduced in Scotland called, simply, the simple procedure, to replace small claims and summary causes for cases with a value of less than £5,000. However, most personal injury claims, while proceeding under simple procedure, have special rules. Employers’ liability claims, where someone is injured at work, are entirely excluded from simple procedure.
Whether to raise the small claims limit has been looked at repeatedly in England and Wales. For example, in 2009 Lord Justice Jackson recommended in his report that the limit be retained at £1,000 for small claims relating to personal injury, with a fast-track system. Looking back on that in 2016, he said:
“The fixed costs regime for fast track personal injury cases is working reasonably well.”
I appreciate that people could say he is biased: he suggested one course of action, which was followed, and then seven years later said it was working well.
However, in July 2016, less than a year ago, Lord Justice Briggs in the final report of his civil courts structure review concluded that
“a fixed or budgeted recoverable costs regime, backed by Qualified One-way Costs Shifting…plus uplifted damages has, in the sphere of personal injury (including clinical negligence) litigation been a powerful promoter of access to justice, in an area where the playing field is at first sight sharply tilted against the individual claimant, facing a sophisticated insurance company as the real (even if not nominal) defendant.”
That sets the scene, because there is an asymmetry between many victims who are claiming that they were injured as a result of someone else’s negligence and the effective body against whom they are claiming. For example, following a car accident between two individual drivers, the victim will be claiming against the other driver. That is often an individual, but behind that driver sits the insurance company, which will run the claim and has to do so under the compulsory policy of insurance that all drivers have to take out.
Graham Stringer (Blackley and Broughton) (Lab)
My hon. Friend is doing a great service to the House of Commons by bringing this issue before it. He is beginning to make the case that access to justice is fundamental to the welfare state. In one sense, he underestimates its importance. Does he agree that it is fundamental to democracy? A democracy relies on freedom of speech, freedom of the press, the right to vote and access to justice. If there is not the money for access to justice, we do not have the rule of law.
Rob Marris
I entirely agree. It is little use having rights if one cannot afford to enforce them. That entrenches inequality.
The consultation came out under the rubric of whiplash. I have to say to the Minister that the consultation somewhat sneakily was announced on 17 November and closed on 6 January. That is a short consultation period over Christmas, which is not helpful.
The Government’s own figures on the whiplash proposals, which may well be a gross underestimate, suggest that if implemented, they will see the NHS lose at least £9 million a year and the Treasury lose £135 million a year. But here is the stinger: insurance companies will get at least £200 million more per year. That is likely to be an underestimate. That figure is due to a methodology that is biased towards insurance companies and has been severely questioned by the Association of Personal Injury Lawyers, of which I think I used to be a member.
The methodology for who gains and who loses under the proposals counts as a gain the extra moneys that insurance companies will get but does not take into account the loss to solicitors. We can all weep crocodile tears about solicitors, but when talking about commercial arrangements, if we are looking at them dispassionately, we have to weigh in the balance where one commercial sector gains and another loses.
Chris Philp (Croydon South) (Con)
Will the hon. Gentleman join me in welcoming the UK’s largest insurance company’s commitment to pass on in full any savings realised to consumers? That means, I hope, that the transfer of value, if it occurs, is from the personal injury law community to everyday consumers.
Rob Marris
I will get on to that. It is interesting and a great declaration, but of course other changes in the past five years or so have led to an increase in insurance company savings of £8 billion in claims costs. That has not been passed on in terms of reduced premiums, which have continued to go up, so I will believe it when I see it. The Government’s own calculations suggest that at least 90% of the money has to be passed through—the term for returning money to policy holders—for there to be any benefit at all.
The Minister for Courts and Justice (Sir Oliver Heald)
As the hon. Gentleman will know, the small claims limit is being put up in all the other jurisdictions, apart from this one, to £10,000. Is it really right that motorists should each pay £40 a year extra, simply so that the sort of solicitors firms he referred to can continue to do work on these very small claims?
Rob Marris
The limit has not gone up in Scotland for personal injury claims. I will get on to the figure of £40 a year and whether it is accurate or not.
So much of this information comes from the insurance companies, which are making huge profits. Premiums have gone up 17.2% in the past year, which I regard as unacceptable. I asked the Association of British Insurers about that on 3 January, and it kindly replied a week later. I am not a statistician, but I have knocked around statistics a lot, and its approach is strange, to say the least. It says:
“Given there is no objective medical evidence for whiplash type injuries, with diagnosis often being made on the basis of the claimant’s word, the ability to prove beyond all reasonable doubt that the claimant has not sustained an injury is both incredibly challenging and expensive.”
That is typically misleading of the Association of British Insurers. The Minister will know, as a distinguished lawyer, that if the insurers refuse to pay out on a claim and the policy holder says the insurers are wrong, the policy holder makes a claim in the civil courts against his insurers, where the test is not about proving something beyond reasonable doubt, but based on the balance of probabilities, which is a much easier test to pass. So that is a straw man, but it is true in terms of criminal actions.
The ABI also states that
“actual criminal convictions clearly only represent the tip of the iceberg, and are not in any way a true reflection of the level of fraud that insurers and wider society face on a daily basis… While some of those cases may have an innocent explanation, many more cases of successful fraud go undetected, especially for whiplash.”
The ABI is assuming what it is trying to prove. It is assuming that there is fraud, but it admits that if there are such cases, they are going undetected. We do not know whether there are undetected cases of fraud or there never was a case of fraud. If it assumes what it is trying to prove, I certainly hope my insurance premiums are not set by insurance company actuaries who take such an approach.
Sir Oliver Heald
That is all very well and good, but the hon. Gentleman must know that the number of road claims has gone up from 460,000 in 2005-06 to 770,000 in 2015-16, and that 90% of them are for whiplash at a time when our roads are getting safer and our cars have seen huge road safety improvements in their manufacture. How can this be?
Rob Marris
It cannot be because the Minister has the figures wrong. The Government’s compensation recovery unit indeed talks of 771,000 claims in round terms, of which 441,000 are for whiplash. That figure has come down by 7% since 2011-12. The overall figure is already coming down, so it is not going in the direction the Minister thinks it is and perhaps he will rethink the proposals.
The ABI says that its statistics
“are therefore intended to provide an indication of the volume and value of fraud detected by the industry. These statistics do not include claims which involve exaggerated personal injury, particularly for whiplash, where the claim has been paid.”
However, it also says that insurers pay out on 99% of claims, so apparently we are talking about the 1% and that is what all these assumptions are based on. That is not a good basis for creating public policy.
Chris Philp
Does the hon. Gentleman agree that the qualified, one-way costs-shifting arrangements that were introduced three or four years ago, whereby the defendant bears their own costs, even if they are successful, creates a perverse incentive for insurance companies to settle claims even when they have a very good prospect of defending them?
Rob Marris
That regime was introduced as part of other changes which have led to £8 billion more for the insurance companies. One must look at the matter in the round.
The ABI says:
“Previous reforms aimed at tackling the compensation culture have not had the desired effect because claims frequency has not been addressed. As such, the removal of general damages for minor soft tissue injuries is by far the most effective way to address claims frequency.”
What sort of minor injuries are we talking about? The Law Society helpfully provided me with some examples from a public briefing:
“A fractured rib (up to £3,300)”—
that is well below the £5,000—
“Food poisoning symptoms continuing for weeks (up to £3,300)”—
Rob Marris
No, I will not. The Law Society continued:
“Neck injuries lasting”
for up to
“12 months (Maximum £3,630)… Back injury lasting up to 3 months (up to £2,050)… Minor wrist fracture (£3,960 maximum)”.
I would venture that such injuries would not seem minor to most of our constituents. Most of them would not say a broken wrist was minor. [Interruption.] Well, they certainly would not in a Labour constituency; perhaps they would in Conservative constituencies. [Interruption.] The Minister is chuntering, “It’s not whiplash”; part of the problem is that the proposals in the consultation paper do not cover just whiplash, with which, I have said, there is not a problem. They cover all personal injuries, including accidents at work. Someone who breaks their wrist at work would not be able to instruct a solicitor, but they would almost certainly have to get a medical report and so on. I just do not think that these are what most of my constituents would call minor soft tissue injuries.
That is one reason why the Law Society has come out against the proposals, saying that:
“the government does not appear to have a robust evidential basis for undertaking the reform”.
So, too, has Cycling UK—it used to be the CTC or the Cyclists’ Tourist Club—which says:
“This change doesn’t target whiplash claims or claimants: it impacts most on those who end up in casualty with broken limbs due to the negligence of others.”
It talks about
“A reform which denies”
the injured
“justice, and sends a message to motorised road users that vulnerable road users’ injuries are a trifling matter”.
The Government have said in their propaganda that most road users have legal expenses insurance as part of their car insurance policy—I do not—so they will be able to get legal representation under that policy. That may be true for many if not most car drivers, but most of us cyclists do not have such insurance, nor do most pedestrians. That is why Cycling UK and its partners—RoadPeace, a national charity for victims, and Living Streets, a national charity for everyday walking—have come out against these changes.
Rob Marris
No, I will not. I have already given way to the hon. Gentleman. I was going to talk about employment tribunal fees, but I have taken up quite some time, and some of my colleagues wish to talk about that. Of course, employment tribunal fees have dissuaded huge numbers of people from bringing employment claims. If the Government really think that 67% of previous claims were frivolous—that is how much the figure has dropped by—they are living in a different world from me. Again, the Law Society, which of course has a vested interest, is against those fees. It said:
“In our members’ experience the remission system”—
for remission of fees for those who cannot afford to pay tribunal fees—
“is confusing, uses complicated language, and is hard to navigate”,
and that is for Law Society members, who are solicitors, let alone the lay person who may have just lost their job and perforce be broke. Only 21% of claimants—far fewer than the Ministry of Justice predicted—have benefited from any fee remission at all. Early conciliation was put forward as another approach, but ACAS says that 70% of claimants who entered into early conciliation did not reach a formal settlement.
Mr Jim Cunningham (Coventry South) (Lab)
I congratulate my hon. Friend on bringing forward this debate. There is another dimension to tribunals and legal aid in general. Many people come to us, although we are not allowed to give legal advice, because they cannot afford to pay for it. Secondly, citizens advice bureaux and bodies such as the Coventry Law Centre are overloaded with work, because the Government have cut the grants to those organisations, and as a result, they have had to reduce staff. There is an endless vicious circle when people try to get justice in this country.
Rob Marris
My hon. Friend is quite right. It is a matter of playing catch-up following the changes to legal aid. There are now legal aid deserts. Recent figures from the Legal Aid Agency show that large areas of England and Wales have little or no provision for legal aid services for housing. That is rather ironic on a day when the Homelessness Reduction Bill, introduced by the hon. Member for Harrow East (Bob Blackman), is being debated. In the south-west, over half of areas have only one provider of legal aid for housing advice. In Wales, half of areas have only one provider. In the west midlands, where my hon. Friend the Member for Coventry South (Mr Cunningham), who just intervened, and I come from, over half of areas have one or no provider. Shropshire, which is not far from my constituency, has no provider. When there is one provider, families on low incomes often cannot afford to travel to see them.
My hon. Friend the Member for Coventry South adverted to the fact that we have a catch-up system, because there are cuts in the number of courts. In Shropshire, people cannot get to Shrewsbury Crown court for a hearing at 9.30 in the morning by public transport from Ludlow, another major population centre. Cases are collapsing as a result; witnesses will not travel, and people are pleading guilty because they do not want to take even more time off work. That is not justice.
Mr Cunningham
Solicitors in Coventry and Warwickshire are looking at the possibility of getting local law students at the University of Warwick to assist with some cases.
Rob Marris
Indeed—that is, when they can get to a court, because there are plans to close 86 courts and tribunal centres and to cut Ministry of Justice staff by between 5,000 and 6,000. That has led to the courts getting clogged up with litigants in person who cannot afford to pay for legal representation. Judges, quite properly, try to assist litigants in person and to be flexible, so cases take longer. The Government end up with a false saving, because we spend more on the remaining courts to deal with litigants in person, and we have a worse justice system with less access to justice.
Ian C. Lucas (Wrexham) (Lab)
Is that not particularly acute in family law cases, and difficult cases relating to children and finance, when litigants in person appear before district judges, who have problems resolving the cases?
Rob Marris
My hon. Friend is entirely right and anticipates what I am going to say. There is, as he will know as a distinguished lawyer, an exceptional case fund, which was established to help people such as survivors of domestic violence to get free legal assistance. The Independent, which admittedly is a newspaper and not the Ministry of Justice, reported in 2015 that from April to December 2013 there were 617 applications to the exceptional case fund—that will be for all of England and Wales—and eight were successful. In the three-month period from April to June 2015, five out of 125 applications were successful. The people applying are some of the most disadvantaged in society and face some of the most grievous personal circumstances.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Legal aid has been eroded particularly, perhaps, for victims of domestic abuse, and many now have to present their cases in the family court. Regardless of recently announced Government proposals in relation to abuse of process, surely domestic abuse victims must have their own lawyers in family courts to avoid abuse by proxy.
Rob Marris
I will reply to the hon. Lady first. I agree entirely with her. I will give way to the right hon. and learned Gentleman, as the Minister, but I will just say that the Ministry of Justice anticipated between 5,000 and 7,000 applications annually. The actual figures are far lower than that. One reason—perhaps the Minister, when he intervenes, can promise to do something about this—is that, understandably, many solicitors are unwilling to make applications to the ECF because it is so bureaucratic, even though this Government say that they do not like bureaucracy; it takes between six and 10 hours just to make the application. The cuts have had far-reaching negative implications for children and vulnerable young people as well.
Sir Oliver Heald
I was just going to ask whether the hon. Gentleman agrees that domestic violence cases are within scope, and that a victim would have legal aid in the way that I outline. As for the exceptional cases fund, which the hon. Gentleman has challenged me to say something about, 1,200 cases a year is the current rate, and 53% are being granted; that is the latest.
Rob Marris
That is helpful, but it kind of makes my point for me. The right hon. and learned Gentleman’s own Ministry—before he was there, I have to say—anticipated between 5,000 and 6,000 such applications. A 53% success rate seems to me, on the face of it, to mean very stringent criteria, given how long a solicitor will spend preparing the application—and they will not get paid for that preparation, which suggests that the solicitor making the application on behalf of the vulnerable individual thinks that there is a very good chance of success. But what do they find? It is about half.
In time-honoured tradition, I will ask the Minister some questions, which I hope he will be able to answer. I did give him some notice of them, but only at noon today, so although he is a hard-working Minister, he may not have had the chance to get on top of them all. On small claims, does the Minister accept that there will not be a level playing field if the proposed changes are introduced, because they will remove funding currently available for injured people to instruct lawyers, leaving them having to act as litigants in person on personal injury small claims?
Does the Minister seriously contend that there is a fraud crisis in relation to workplace injury claims, which the proposed changes would cover, and if he does, which he may, what independent evidence, not from the insurance industry, does he have of such a crisis?
The impact assessment for the proposals says that there will be a cost to the NHS of at least £13 million a year and to the Treasury of at least £135 million a year, and an increase in insurance company profits of £200 million a year. Does the Minister accept that that means that the Treasury will lose out while the insurance industry gains? If he does not accept that, perhaps he could explain why.
Can the Minister say by what date the Department will publish its review of the impact of employment tribunal fees, and what data the Department has on how such fees have affected the use of alternative dispute resolution services? What steps will the Government take to try to ensure that all children and vulnerable young people can get legal aid? The Minister has already mentioned some changes in that regard. Following on from that, will he give a commitment to review the exceptional cases funding system to make it much more accessible, and if he will not, can he explain why not?
Several hon. Members rose—
Chris Philp (Croydon South) (Con)
It is a pleasure to serve under your chairmanship, Mr Davies, particularly given your previous association with Croydon.
I would like to talk specifically about the Government’s consultation on whiplash claims, and the reason for that is an experience that I had two or three years ago. After a very minor road traffic accident in which no one was injured, I was bombarded with phone calls to my personal mobile every week for about a year from a claims management company. It explicitly asked me to pretend to have an injury that did not exist in order to claim compensation.
I have no issue with the more general points that the hon. Member for Wolverhampton South West (Rob Marris) makes about access to justice and the court system. I am talking specifically about whiplash. It is as a result of practices such as the one that I have described that this country has more than two times more whiplash claims than the rest of Europe, and the total number of claims for soft tissue injuries— whiplash and neck and back—has been static, at about 800,000, for the last few years.
One reason for that is the perverse incentives in the system. As I mentioned in an intervention, under qualified one-way costs shifting, when a claim is made, even if the defendant—the insurance company—is successful in defending the claim, it must bear its own costs, which are quite often up to £10,000, so it is easier for the insurance company to stump up £3,000 in insurance and pay some costs to the prosecuting or claiming solicitors firms—some of those costs go to the claims management company—than to dispute the claim. That is why claims here have grown to proportions that are vastly higher than obtain in the rest of Europe and why, as my right hon. and learned Friend the Minister said, at a time when accidents have declined by 30%, claims have gone up by 50%.
In The Sunday Times a year or so ago, there was a shocking report about a company called Complete Claim Solutions—one of the most notorious CMCs, which makes 7 million outbound cold calls a year. Its trainers were covertly recorded by The Sunday Times encouraging or telling—instructing—its staff to get the public basically to lie and make fraudulent claims. I have myself been on the receiving end of those phone calls.
On the point made by the hon. Member for Wolverhampton South West about broken bones, I have looked at the consultation document, and it specifically refers to soft tissue claims. I fully accept that where a cyclist or motorist has broken a rib, wrist or leg, their claim is perfectly valid and verifiable and should be allowed to proceed. We are talking about soft tissue injuries, where there is no objective medical evidence other than the claimant’s own claim. Those claims add, I believe, about £40 to everyone’s motor insurance policy, but more worryingly in my view, they are morally corrosive because large numbers of the public are being incited to commit fraud. That is a bad thing for the fabric of our society.
Rob Marris
The Government’s press release announcing the consultation on 17 November said that measures include
“raising the limit for cases in the small claims court for all personal injury claims from £1,000 to £5,000”.
It said nothing about soft tissue injuries.
Chris Philp
Well, certainly the consultation document refers on its front page to soft tissue injuries. I am sure that the Minister will consider how that might apply to broken bones, but the title of the consultation refers to soft tissue injuries only.
In my response to the Ministry of Justice consultation, I made a number of proposals, several of which I would like to elaborate on here. I believe that there should be a blanket ban on outbound cold calls in relation to soft tissue injuries. There should be a ban on pre-medical offers. Insurance companies should be required to conduct face-to-face medical examinations, and those examinations should produce independently verifiable evidence. That should be more than just someone saying, “My neck hurts.” The injury should be capable of verification by a third party, so in the case of a broken bone, that would clearly involve an X-ray.
I believe that there should be a ban on general damages for minor soft tissue injuries—not broken bones, but minor soft tissue injuries, where there is no evidence of the kind to which I have just referred. For those injuries, I fully support a threshold of £5,000.
There should also be a duty on claims management companies and solicitors to explain explicitly to prospective claimants that fabricating evidence is an unlawful act. They currently do the reverse; they actually encourage false claims. The Ministry should look again at qualified one-way costs shifting, because it creates a very perverse incentive for insurance companies to settle even when they could win a case in court.
On the point raised by the hon. Member for Wolverhampton South West about where the money ends up, I think that the saving could be more like a billion pounds a year, not £200 million. I would expect that to be passed on to ordinary members of the public and not pocketed by insurance companies. Aviva has committed to do that, but if, after a year, it turns out that the insurance companies have simply pocketed the extra money and not passed it on, I would expect the Competition and Markets Authority to be encouraged by the Government—or even required, if the Government have that power—to conduct an investigation to make sure that those savings are passed on to the hon. Gentleman’s constituents and mine. I do not expect these savings to end up in the back pockets of the insurance industry.
I would also like to see another practice ended. Again, this is a point for the insurance industry. A few years ago, there was a ban on referral fees, which is money that a claims management company would pay an insurance company to hand over the details of somebody who had been involved in a motor traffic accident. They are circumventing that ban through what they call alternative business structures. That is where the insurance company has some form of equity or profit share stake in a claims management company, the details still get passed on, and the insurance company effectively gets paid via the equity stake as a means of circumventing the referral fee ban. That is clearly an abuse and we should take steps to end it.
Finally, there are many examples of insurance companies procuring services such as car hire, legal services or vehicle repair services very cheaply, and they get recharged to the at-fault party’s insurance company at a significantly marked-up price. That is profiteering and, again, steps should be taken to prevent it happening.
In summary, I very strongly support the measures proposed in relation to soft tissue injuries. They will end a whole cottage industry that is morally corrosive because it is encouraging huge numbers of people to commit fraud, and costing our constituents £40 each per year, per car insurance policy. I welcome these proposals. I hope to see them brought on to the statute book at the earliest opportunity, and look forward to supporting them on the Floor of the House when that happens.
HMP Birmingham
Rob Marris Excerpts(8 years ago)
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Elizabeth Truss
We have great recruitment plans and programmes in place. We have already recruited a significant number for the first 10 prisons, including one in Wales, and we will follow that through with new apprenticeship programmes and graduate entry programmes and by making sure staff in our prison service are able to gain promotion and get the training they need to progress.
Rob Marris (Wolverhampton South West) (Lab)
John Thornhill, president of the National Council of Independent Monitoring Boards, says the boards are “frustrated” by the lack of response to the issues raised in their annual reports, so can the Secretary of State tell me three specific and substantive actions taken as a result of the relevant monitoring board’s latest annual report into Birmingham?
Elizabeth Truss
The White Paper is very clear about reforming and making sure IMB recommendations are taken seriously, and about working closely with Her Majesty’s Inspectorate of Prisons, because at the moment there is no duty for the Secretary of State to respond. We are putting that in place, to make sure it triggers action.
Oral Answers to Questions
Rob Marris Excerpts(8 years ago)
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Elizabeth Truss
First, may I welcome my hon. Friend back to the House? It is great to see her back on our Benches looking so fit and well.
Elizabeth Truss
Indeed. Finally, I can agree with a comment from the Opposition.
My hon. Friend is right to highlight the issue of self-harm and suicides in our prison. The rates are too high, which is why we are taking steps to increase the number of prison officers. We will have a dedicated officer for every six prisoners and they will be responsible for those prisoners’ welfare and for helping them to turn their lives around so that they do not go back to reoffending.
Mr Gyimah
HMP Lewes is exactly the kind of local prison that will benefit from the new prison apprenticeship pathway. I anticipate that the prison will also benefit from the new Prison Service apprenticeship scheme that we are launching in 2017, which will help recruit members to the Prison Service by widening the number of entry points into the service.
Rob Marris (Wolverhampton South West) (Lab)
Elizabeth Truss
I am delighted that my hon. Friend has joined that review, to which I am sure that she will make a major contribution. Clearly there are issues throughout the criminal justice system that we need to examine, but I am certainly keen to see more diversity throughout our legal services industry and our judiciary, and we are working very hard on that.
Rob Marris (Wolverhampton South West) (Lab)
Education budgets are being devolved to prison governors. Will each of those budgets be ring-fenced for education spending purposes?
Oral Answers to Questions
Rob Marris Excerpts(8 years, 1 month ago)
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Mr Speaker
It is very good of the right hon. and learned Gentleman the Minister to be willing to do what he asked me for permission to do; that is extraordinarily gracious of him.
Rob Marris (Wolverhampton South West) (Lab)
Kelvin Hopkins
I thank the Minister for his answer to my question, but a TUC report of this October raised concerns that the Act is a barrier to access to justice for victims of domestic violence. The regulations concerning the provision of evidence of domestic violence are restrictive and narrow and have led to a 16% drop in applications and a 17% drop in applications granted. Is it not time the Secretary of State admitted that the Act is denying access to justice for thousands and must be amended?
Sir Oliver Heald
It is of course important that legal aid is available for victims of domestic violence, particularly those seeking protective injunctions. On the evidence requirements, in April we more than doubled the time limit on evidence from two to five years, and we have introduced a provision that allows the Legal Aid Agency to grant legal aid if it is satisfied that an application demonstrates financial abuse. This is important and it has been varied in the light of experience over the last two or three years, and we will continue to monitor it.
Rob Marris
Access to justice and legal aid are pillars of the welfare state, yet almost one third of legal aid areas in England and Wales have one or no housing advice providers, including the legal aid area covering my constituency. One provider is not enough, so what steps will the Government take to ensure there are at least two providers for each area?
Sir Oliver Heald
It is important to recognise that housing cases where a person’s home is at risk fall within the scope of legal aid. The Law Society has raised concerns, as the hon. Gentleman will know. There are a lot of these cases in some parts of the country, but very few in other parts. What we have done is, through the Legal Aid Agency, taken active steps to ensure that there is adequate provision of housing advice around the country.
Sir Oliver Heald
On the point about one or two providers, there are some places where one firm is providing a range of offices and functions across a number of clients, and other areas where the circumstances only really require that there should be something like a telephone hotline, which there is. The provision that is being made is what is needed.
Oral Answers to Questions
Rob Marris Excerpts(8 years, 3 months ago)
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Rob Marris (Wolverhampton South West) (Lab)
Half an hour ago, the Secretary of State said that when the Human Rights Act is repealed it will be replaced with a new British Bill of Rights that will include additional human rights. What additional human rights will there be?
Elizabeth Truss
I said that we will enhance human rights in this country, and we will bring forward our proposals in due course.
Oral Answers to Questions
Rob Marris Excerpts(8 years, 6 months ago)
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Andrew Selous
We have fewer and fewer restricted regimes across the estate, but the whole thrust of what the Secretary of State and I are trying to do is increase the time out of cell and put education at the heart of the prison regime. I want prisoners to learn not only when they go to the education classrooms, but during their association periods and in their cells, so that we have a whole prison learning experience.
Rob Marris (Wolverhampton South West) (Lab)
I praise and thank the Government for raising the profile of this issue. One thing that sometimes disrupts the education of prisoners is the loss of their records when they are transferred; that results in dislocation. Will the Minister outline what steps the Government propose to take to smooth the transition when a prisoner transfers, so that he or she can continue their education?