(6 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend makes a very important point. Other jurisdictions are also mounting challenges. We must avoid doing anything that might impair the reputation of the sector.
My hon. Friend talks of the reputation of the sector. It is also about hard cash. At the end of the day, the legal services sector makes a contribution of about £25.7 billion per annum to the economy. It is really significant for our economic wellbeing.
I will be making the case that the hon. Lady has just put.
On labour mobility, the legal services sector has profited from the ability to attract talent from across the globe and the ability to work in the European Union. Frankly, many people going into the offices of a City law firm would be staggered by the number of nationalities and the depth of EU and world legal experience that we have in the UK. For instance, an American client would quite commonly run its European company acquisition strategy from London—because we speak English, yes, but also because they trust our jurisdiction and courts, and because we have European expertise here in London. We do not want to lose that. It is very important that a labour mobility framework that guarantees those abilities post-Brexit is put in place.
The legal services sector requires legal certainty throughout the UK’s withdrawal from the European Union. Law firms and their clients are already, sadly, beginning to implement contingency plans and move business elsewhere. We now have a draft of a detailed transition agreement, and the sector believes, as I do, that that agreement must be confirmed as soon as possible to ensure the sector has the legal certainty that it requires.
Does my hon. Friend agree that having a swift and clear transition agreement is important not just, as he rightly says, to give law firms the certainty they need to continue their operations, but to ensure for their clients contractual continuity and, above all, the enforceability of contracts and judgments in commercial matters and a whole range of other matters?
As ever, my hon. Friend makes a pertinent point. Avoiding a no-deal scenario and securing the right future relationship with the European Union is of the utmost importance. The APPG supports the view of the legal services sector that a no-deal scenario would be devastating to the sector and should be avoided at all costs. Of course, there have been significant recent developments. Last week, on 14 November, the Cabinet collectively agreed to the draft withdrawal agreement and the political statement on the future relationship. Following a special European Council meeting on 25 November, the Government intend to lay a final version of the agreement before Parliament for debate.
It needs to be recognised that the draft withdrawal agreement contains a number of positive elements for the legal services sector, including provisions on mutual recognition of professional qualifications and on lawyers continuing to obtain qualifications throughout the transition period, and clarity on continued recognition and enforcement of judgments and orders throughout that period. Lawyers will continue to have the right to represent a party in proceedings before the CJEU in all stages of proceedings where a case can be brought by or against the UK. The automatic transfer of an EU intellectual property right into an equivalent UK right before the end of the transition period is very welcome.
The non-legally binding declaration, however, is a work in progress. To be frank, it is worryingly brief and it is vague on services, especially legal services. The relevant part of the political declaration explains that the goal is to secure
“Ambitious, comprehensive and balanced arrangements on trade in services and investment, delivering a level of liberalisation in trade in services well beyond the Parties’ WTO commitments”.
It says that the Government will put in place
“Appropriate arrangements on professional qualifications.”
I have to say that this is pretty sketchy stuff, and so we continue to have concerns about the lack of detail contained within the political declaration between the UK and the EU.
First, it is pretty unambitious for the UK-EU agreement to say only that it will go “well beyond” the parties’ World Trade Organisation commitments, and it is likely to lead to significantly less market access for services. Secondly, like with the Government’s White Paper, there are concerns about the continued focus on regulatory flexibility, as I mentioned before. The preservation of the present system, whereby lawyers from EU member states, EEA states and Switzerland can practise freely across the continent, should be prioritised instead. Thirdly, it is good to see a reference to professional qualifications, but that only goes some way towards giving lawyers the ability to practise in the EU, and generally it is not their preferred route.
Fourthly, it is disappointing not to see a reference either to civil or commercial co-operation, unlike in the Government’s White Paper. The UK and the EU currently enjoy the gold standard in civil and judicial co-operation, which should continue. Fifthly, without an agreement on judicial co-operation, judgments made in UK courts might be unenforceable in EU countries in the cross-border settlement of trade disputes, which might result, for instance, in debts owed by EU entities to UK businesses not being recovered. It follows that uncertainty about whether judgments from UK courts would be enforced could make the UK less appealing as a jurisdiction of choice for contracts and dispute resolution, which would lead to the growth of competing jurisdictions.
It is a pleasure to serve under your chairmanship, Sir Christopher. I warmly congratulate my hon. Friend the Member for Huntingdon (Mr Djanogly) on securing the debate. I congratulate the all-party group on legal and constitutional affairs on its excellent report, which mirrors the Justice Committee’s conclusions in our report in the 2016-17 Session on the implications of Brexit for the justice system, especially in the areas that relate to co-operation in civil and commercial law. Our report, of course, went further and stressed the importance of continuing co-operation on criminal law and law enforcement, but our conclusions on the civil front are exactly in line with those of the all-party group. That is not surprising, because the evidence is entirely consistent.
My hon. Friend the Member for Henley (John Howell), who serves on the Committee with me, stressed the other issue that we want to raise: family law. This is not just about the clients of big commercial firms. The ability to enforce judgments makes a difference to parents who are seeking to get maintenance from a partner in another EU jurisdiction. At the moment they can enforce their maintenance agreement without any difficulty, but they would be at a grave disadvantage if they were not able to do so.
Many of us will remember the problems that arose in the past with the growth of what is called parallel litigation in family cases, in relation to divorce, financial arrangements and child custody arrangements. The last thing we want is a crash-out arrangement. In theory, that would mean that, as of 1 April next year, a parent in the UK and one in another EU jurisdiction would be capable of commencing parallel proceedings in family matters.
My hon. Friend is stressing the role of the family courts, but he might also want to mention the ability to handle child abduction equally on both sides.
That is entirely right. Some of the worst examples, before we developed the mutual enforceability of judgments, related to child abduction. In cases involving non-EU states, in which we are a third country, the parent here—frequently the mother—was at a significant legal disadvantage and did not have the protections that we have under the current arrangements, particularly the recast Brussels arrangements. I am glad that my hon. Friend has raised that issue.
I want to make two other points very briefly. First, I support my hon. Friend’s point about English law. Those of us who have practised know that, because of the reputation of our system, it is almost the norm to find English law clauses in international contracts. We want that to continue, but it is concerning that the Bar Council and the Law Society have been reporting evidence—so far anecdotal, but strong—that the uncertainty and the risk of a crash-out arrangement without contractual continuity is leading some firms to advise their clients to have clauses excluding English law from contracts. It would be extremely troubling if that were to persist. The longer the uncertainty, the greater the risk.
Simmons & Simmons, a leading law firm, conducted a survey of clients in Germany, France, Italy, Spain and the Netherlands to look at what the courts in those countries might adopt if we were a third country and could not rely on the current arrangements. It reported that 88% of clients—people abroad buying British services—thought that the Government needed to make an early public statement to remove uncertainty, and 50% said that, without that, they would be inclined to move away from choosing English law or jurisdiction clauses. The situation is urgent, so I will back the withdrawal agreement because it will get us into a transitional arrangement, which will give continuity for that period. More importantly, contracts will run beyond the date on which we leave, and significant commercial litigation will almost certainly take more than two years to work its way through. I hope that those issues will also be taken on board.
Will the Minister consider a couple of suggestions by the City of London Corporation and TheCityUK, to which I am grateful, about failsafe devices—I do not like to use the word “backstop”, because it has certain controversial associations—that we could have in parallel with seeking to get the withdrawal agreement through and get into the transition period? It has been suggested that it would be reasonable to look at a means of copying the text of the Rome I and Rome II regulations into our own private international law. Those regulations, of course, determine the applicable law for contractual obligations. As well as seeking the transition, many lawyers think it would be advisable to copy those texts—in parallel, I suggest, as a belt and braces operation—which are much superior to anything that went before, into our law. It is also important that we consider re-signing The Hague convention as an independent party. That would be a failsafe, not my preferred objective, but we need to have those eventualities in mind. That would assist with certainty.
In her Mansion House speech, the Prime Minister talked about the Lugano convention. I think that most people would concede that Lugano, in its original form, is nothing like as good or effective as Brussels I and II in their recast form. They are the gold standard that my hon. Friend the Member for Huntingdon referred to. Will the Minister take away the idea that, to get us anything like as good as we have under Brussels, any Lugano would have to be a Lugano plus plus plus?
I am grateful to my hon. Friend, the Chair of the Select Committee on Justice, for giving way. The comments made in this debate bear a striking similarity to those made in the debate that followed the production of the Committee’s report. That just goes to stress the urgency of the situation. Law firms cannot wait forever to get a degree of certainty; the time for action is fast running out. Does he share my concerns about that?
I agree that there is a danger of us becoming a legal version of groundhog day in these debates. I know that the Minister is absolutely committed to achieving continuity, but there is a real sense of frustration among practitioners because, although there are warm words, promises and statements of intent, and a Brexit law committee in which practitioners are involved is being set up, none the less, despite those strong wishes, the detail on future arrangements remains extremely scarce. If the Prime Minister succeeds in moving us on to the next stage, as I hope she does, it is absolutely critical that that detail is fleshed out at the earliest stage. I hope that we will take the opportunity of strengthening the political declaration that comes as part of the package with the withdrawal agreement, as the Prime Minister said today, so that it makes more reference to legal services in particular.
It is a pleasure to serve under your chairmanship, Sir Christopher. I congratulate the hon. Member for Huntingdon (Mr Djanogly) on securing such an important debate, and I will touch on some of his remarks. He mentioned that the legal services sector contributed £26 billion to the economy. Like him, I look forward to hearing the Minister outline what her Department is doing to prepare for a hard Brexit, should that occur on 29 March.
My colleague on the Justice Committee, the hon. Member for Henley (John Howell), mentioned a point made by Lord Chief Justice on the paucity of judges in the English system, which has come up from time to time in the Committee’s deliberations. I have made it a habit not to disagree with the Chair of the Justice Committee, the hon. Member for Bromley and Chislehurst (Robert Neill), because he is wise and rarely wrong, and he was right again, particularly when he brought up the potential position of family courts post-Brexit. He also mentioned that the discussion is akin to groundhog day, which I am pleased to tell him is on my birthday, so I look forward to a nice bottle of malt from him.
Whatever the hon. Gentleman can afford; I would be most grateful.
On a more substantive point, we have heard today that Brexit has the capacity to complicate and disrupt every aspect of our lives. Over the decades, European co-operation on justice issues has undoubtedly led to countless criminals and victims getting justice. Brexit seriously risks that successful current arrangement for very little gain. It is vital that the UK Government do everything in their power to ensure that cross-border legal service arrangements are as close as possible to the current arrangements.
At the moment, it is unlikely that the Prime Minister’s withdrawal agreement will pass the House of Commons. On top of countless other problems, a no-deal Brexit would discard the agreement to have reciprocal recognition of legal qualifications. With their technical notice, the Government have provided something, but it does not provide anywhere near enough clarity on justice arrangements after a no-deal Brexit. I welcome the fact that under the withdrawal agreement, mutual recognition of legal professionals would continue at least during the transition period.
That is just one example that highlights how European Union membership benefits our justice system and society more widely. The Scottish National party will continue to argue that the best course of action for Scotland and the UK’s other constituent nations is full membership of the European Union. Failing that, even single market access via the European economic area and customs union membership would also allow current arrangements to continue unhindered.
We are hurtling rapidly towards a blindfold Brexit, with no clarity on what future arrangements will look like. Despite some of the welcome guarantees, we are still none the wiser about what the arrangements for legal services will look like. We remain gravely concerned about the future of legal services in Scotland and across the UK after transition. I urge the Minister and the UK Government, in the strongest possible terms, to get their act together and address that urgently in the future partnership arrangements.
No one can know for certain what will happen in the next few months, but it is clear that the Prime Minister will struggle to gain approval for the agreement, and a damaging no-deal Brexit is still a real possibility. As we heard from the hon. Member for Huntingdon in his opening speech, the mutual recognition of professional qualifications directive, the lawyers’ services directive and the lawyers’ establishment directive all provide reciprocal arrangements between EEA states for the recognition of qualifications, creating arrangements for European lawyers to register to practise permanently in another EEA state as a registered European lawyer. As the Government’s technical notice clearly states, if no deal came to pass, those reciprocal arrangements would cease to apply, which would result in a sharp end to them on 29 March. As we have heard in great detail, that would be an unmitigated disaster for law firms and lawyers who operate in the EU.
The Law Society of England and Wales carried out research on Brexit. Some £3 billion could be stripped from the sector’s turnover by 2025 if the UK crashes out of the EU without a deal, and a hard Brexit could cut the legal sector’s rate of growth by half. The UK is a world-leading centre in legal expertise, as we have heard, and that standing could be irrevocably diminished because of Brexit—“global Britain” indeed. The Scottish National party has been consistently clear that freedom of movement and all the advantages that it brings should be allowed to continue in Scotland. Ending freedom of movement will jeopardise the continuing success of the legal sector in a country that voted overwhelmingly to remain in the European Union. That will be heavily damaging and deeply unfair. It is vital that the legal sector continues to receive the benefits of freedom of movement, and retaining freedom of movement is the simplest way to secure that.
Andrew Langdon, Chair of the Bar, told the Justice Committee that
“without the free movement of lawyers nothing else of much importance will be salvaged”,
arguing that lawyers’ ability to represent local clients in cases with EU connections is important for the individuals and businesses they represent.
Stakeholders and leading legal experts are desperately calling out for clarity and decisive action from the Government. A sector that is especially vital to the UK economy is under threat, and our lawyers need answers beyond the transition period. If the Prime Minister cannot get an agreement through the House, we seriously risk subjecting the sector to further irreparable damage. It is therefore better to reverse the whole shambolic process and remain in the European Union, so that we would retain the benefits, not only in the justice system but in countless other areas that have enjoyed benefits for decades. At the very least, we should come to an agreement on retaining membership of the single market and the customs union, but if, as I fear, we do not, I suspect many Scots will feel that they have no choice but to exercise their democratic right to regain all those benefits by choosing an independent path of their own within the European Union.
(6 years, 2 months ago)
Commons ChamberThat is absolutely essential. More than half of our prisoners are currently presenting with mental health issues. When I shadowed a prison officer in Wormwood Scrubs last week, I had a long conversation with somebody who had attempted to kill themselves and had been hearing voices. That is not unusual. We have to work much more closely with the NHS. I am very pleased at the progress that the NHS is making, and I hope that future investment in the NHS and mental health will go directly into prisons.
The work being done by the Minister is very welcome, but will he also recollect that we need to start on preparation for release much earlier than the 12 or so weeks currently built into the contractual arrangements?
That is absolutely right. The key worker scheme that we are rolling out allows the prison officer to develop a relationship with an individual prisoner, to work with them on their sentence plan and education plan. One reason why it is so important is that it will help us to settle people into the community much earlier in their sentence.
I think the Chair of the Select Committee should have a second bite of the cherry. I call Mr Bob Neill.
I am very grateful, Mr Speaker. The Secretary of State has a particular responsibility to protect the interests of the judiciary. Recruitment to senior judicial office is a continuing problem, and there is a regular shortfall. He has indicated that he intends to consider seriously the recommendations of the Senior Salaries Review Body. When can we expect a response to this, given that a number of important posts are due to fall vacant?
My hon. Friend is right to highlight the shortage, particularly at the High Court, and it is right that we should look seriously at the proposals of the Senior Salaries Review Body. I am not going to put a date on when we will have completed that process, but it is important that when we do so, we get judicial recruitment on to a sustainable basis.
(6 years, 3 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Sir Henry. I start by referring to my declaration in the Register of Members’ Financial Interests. I thank the hon. Member for Hammersmith (Andy Slaughter) for securing this debate on a very important topic.
I make no bones about approaching this debate with a rather personal stake. Before I came to this place, the whole of my working life had been as a barrister practising in the criminal courts, almost invariably publicly funded by legal aid to defend or by the Crown Prosecution Service or the Serious Fraud Office to prosecute. I hope I can recognise that this is not merely an academic matter. These things affect the lives of every one of our constituents and every Member of this House, regardless of party. I hope I will be able to approach the debate in that spirit.
It is a long history that we have to review. LASPO is just one step in the changes to legal aid that we have seen over the years. The hon. Member for Huddersfield (Mr Sheerman) referred to the famous quote by Mr Justice Mathew, later Lord Justice Mathew. At the turn of the 20th century, he said that the courts of England are open to all like the Ritz hotel. I am sure the hon. Gentleman was not actually there at the time—I was not either—but it has become a stock phrase. The point, however, is that Mr Justice Mathew was being ironic; for those who did not have means, there was precious little access to the courts of England at that time.
After that period, we developed a system of legal aid over a number of years. I accept that I was to some degree a beneficiary of that system, but the system was necessary to ensure that justice was done. Thereafter, it may be argued—I think it was part of the rationale behind LASPO—that in some areas, the system did not work as efficiently as it might. I can think of rolled-up conspiracy trials that went on for about six months, where two barristers for each defendant would ask about one question a week. Frankly, that was not an expenditure that could be justified, and it was not targeting things in the right way.
The problem is that successive Governments seeking to reform—it is worth remembering that changes to legal aid did not begin with LASPO or the coalition Government; they were set in train initially, in some measure, during the Blair and Brown Governments—have run the risk of throwing out the baby with the bathwater. In cutting down on some instances of needless expenditure that went beyond what was necessary to ensure justice, there is always a risk that the pendulum will go too far the other way. Having looked at the matter and tried as a lawyer to look at the evidence, I am sorry to say that I am driven to the conclusion that that is what has happened here.
The good news is that there is an opportunity to review things. It is a shame that it has taken so long, but we would all say, “Better late than never.” I know that the Minister is absolutely committed to ensuring proper, good-quality access for all who genuinely need it. I know her personal commitment to the Bar, the rule of law and our legal system and her personal experience of it, so I know she will approach this matter in the open-minded way she did when she was in practice herself. I urge her to look at the evidence. As the hon. Member for Hammersmith said, the evidence is pretty compelling that changes are needed. I do not expect her to say what those changes are going to be today, but I hope she will take away the message that the evidence does not purely come from pressure groups of self-interested lawyers. Nothing could be further from the case.
My hon. Friend is making an excellent point. Does he agree that our international reputation is at stake? The legal sector is one of the most important in our economy. If we want to continue to be a country that has a global reputation, generating revenues for our economy in respect of international law, we need to ensure that we hold up equality of access to justice for all as a touchstone of our liberty.
My hon. Friend is absolutely right. He speaks with great experience from his time in practice in serious criminal matters and from his work on the Justice Committee, to which I pay warm tribute. We cannot disaggregate the justice system. As part of our post-Brexit strategy and our “Britain is GREAT” campaign, the Minister’s Department is rightly proclaiming the value of our legal system and legal services, which is real and profound. Their integrity depends on the whole system being properly resourced and funded. It is no good simply to say that we have the best means of commercial dispute resolution and arbitration in the world. It is not enough to say we have probably the best system of civil justice across the piece in the world. It is equally important that we can say the same about our criminal justice system, our family law system and our tribunals system. They are increasingly relevant and important to the whole system.
The hon. Gentleman is making an excellent speech and an excellent point. May I add that we need to have a local justice system that works right across the country? Towns and rural areas also need access to justice for people in those areas. One of the real problems with the Government’s running of the justice system more broadly is that local justice has been profoundly undermined by lack of provision and court closures.
With his experience, the hon. Gentleman makes an entirely valid point. The Justice Committee has looked at a number of those areas over the past two or three years or so, and we have looked at aspects of access to justice in all its forms. It is partly about legal aid, but there are other matters, too. I will concentrate on legal aid because that is the subject of the debate, but his point about other matters is entirely fairly and well made.
There is a clear case that in attempting to right what was perhaps extravagance in some limited areas, we may have inadvertently done injustice to potential claimants. We need to put that right. The first area that I would suggest to the Minister is important is funding advice, as has already been observed. The legal aid change was predicated—I was there at the time, as was the hon. Member for Hammersmith, and I was prepared to take this on face value—on the idea that it would be a good thing to move away from the comparatively adversarial approach to family cases to mediation and something much more collaborative. That has to be the right thing. The Minister’s Department is recognising that in another sense with the sensible proposals to reform the divorce laws to move away from a confrontational approach. The irony is that so far as legal advice and representation are concerned, those good intentions have not been followed through.
As has rightly been observed, early access to legal advice and a solicitor would point people in the direction of mediation. We can invest significant money in having much more public education so that people can assist themselves, but it may be just as cost-effective—I suspect it would be more cost-effective—to restore some measure of early advice in those family cases. Any good solicitor worth their salt will rightly advise their clients to adopt that course of mediation if it fits the circumstances of the case. Restoring the position there would be a sensible investment to save.
Does my hon. Friend agree that sometimes the best advice that a lawyer can give at an early stage is, “For goodness’ sake, don’t litigate”? If that good advice is given at an early stage, we can have a reasonable expectation that the courts will be properly allocated to deal with those disputes that they should be dealing with.
Again, my hon. Friend is absolutely right. What he says applies not only to family work, but to any form of civil litigation and, in truth, to criminal work, too. When I defended people, I regarded it as my first and principal duty to give them an honest assessment of their prospects of successfully defending a charge.
The hon. Gentleman and I both serve on the all-party parliamentary group on miscarriages of justice. I do not think that people are saying that the situation is due to malign intent. Many of the things that we are talking about today are unintended consequences. Certainly, it was not intended that there should be miscarriages of justice, or that people should be unable to get any professional help at all. The Ministry of Justice is tiny in the scheme of things, but its resources have been savagely cut.
I take the hon. Gentleman’s point, and I agree that there was nothing malign in the intent. The changes were made at a time when the coalition Government were under considerable financial pressure because of the situation that we inherited. I have much sympathy with that, but to adopt the phrase of John Maynard Keynes, “When the facts change I change my opinion—what do you do, sir?” The Government need to do that too, because the evidence has been built up, and it is powerful.
For a number of reasons, it was thought necessary to introduce the LASPO reforms at some speed. They were probably not fully worked through, there was no chance to do sufficient impact assessments, and they were not tested. Again, it was not for a malign reason. At the time, there was a compelling budget imperative to get on with it, but it created unintended consequences. As the Prime Minister has observed, we are getting to a stage where, thanks to the Government’s good economic stewardship, we might be able to loosen the purse strings a little in some areas. That gives us the chance to adopt that Keynesian approach and adjust our conclusions to the fresh evidence that has come before us.
Early advice is essential. We have talked about family work and its importance in the criminal system. Any lawyer will advise his client, if the evidence against him or her is overwhelming, of the advantageous discount in sentence for an early plea. Proper advice by specialist lawyers saves time and money, and saves witnesses in criminal cases from the trauma of having to go to court. We should not forget that either, as it is an important part of the system.
Early advice is also important in cases of housing and debt, and related matters. People have come to my surgery, in a comparatively prosperous part of suburban London, having been in effect served with an eviction notice because they did not understand the court papers. Bailiffs were literally coming to the door. We cannot expect people who often have multiple problems in their lives necessarily to be able to resolve such things on their own.
We can certainly make the civil justice system easier to navigate. The reforms to an online court, for example, and better means of entering pleadings and dealing with smaller-sized claims are all perfectly worthy and worth while. However, ultimately, even if a computer can process the pleadings efficiently and effectively, it cannot advise someone on whether there is merit in their claim, whether they have a defence to an action brought against them or how they might best compromise the matter so that they do not, for example, end up on the street or saddled with significant debt. All those things require the legal element, and I suggest that there would be a saving in reinstating some funding there.
I keep in touch with many friends and colleagues at the Bar who now sit on the bench. I sometimes reflect that my career took a wrong turn somewhere along the line. The truth is that anyone in the judiciary—whether from the High Court or, perhaps even more significantly, down to circuit judges and district judges, who shoulder the vast volume of the work, as well as magistrates—will say that the amount of time that is now taken up by litigants in person is placing a serious burden on the system. I go to my local county court and talk to the district judges and the county court judge. Exactly the same thing can be seen at the magistrates court, and I have no doubt that it is replicated across the country.
It is generally thought that a litigant in person will take about three times as long to deal with a case than lawyers would, if they were involved. The upshot is that we are saving cost at one end of the system but piling it on in another part. The net benefit to the public purse is nil—perhaps even negative.
My hon. Friend has been so generous. Does he agree that one of the pillars of our world-renowned legal system is the integrity, skill and impartiality of our judges? It is no secret that they feel quite put upon at the moment, not least on pensions and other matters. Their time is being taken up with extremely complex issues where it is harder for them to achieve justice. Does he not agree that we should take that extremely seriously, so that we continue to have a pipeline of the brightest and the best?
That is right. We could probably have a debate on judicial recruitment and retention.
Perhaps we should, and perhaps I will encourage my hon. Friend to join me in doing so.
Litigants in person are a real pressure on the totality of the court system, because if courts are being clogged up by cases that are being slowly presented—where the judge has to hold the litigant by the hand to take them through steadily and ensure that there is no miscarriage of justice—that uses up the time of the court building and the court ushers. It puts pressure upon listing, and means delays in other cases coming on. There are more likely to be adjournments because people will not have prepared the bundles properly or got their evidence together. That is all wasted cost in the system, which some early investment would save.
Those are key areas where more could be done. We perhaps need to look, too, at some areas in relation to tribunals—an increasingly important area of jurisdiction. Not all tribunal cases, of course, need legal representation, but they increasingly deal with more complex matters and more complex areas of law and of fact where it makes sense, for exactly the same reasons, to have proper legal advice.
Joining those thoughts together, I commend to the House the Justice Committee’s reports on access to justice, and on courts and tribunal fees. Although fees are separate from the legal aid regime, the unintended consequence of some of those changes was remarkably similar in making access to justice for deserving—that is the key bit—claimants more difficult. Finally, we recently wrote a report on criminal legal aid. I will end on that—it may be the subject on which I have spent most of my life.
We cannot have a situation where it is extremely difficult to get high-quality young lawyers to go into criminal work. The integrity of our system, to which my hon. Friend the Member for Cheltenham (Alex Chalk) referred, is seen most visibly in the way in which we deal with criminal cases. If the state, no doubt for good reasons, thinks it necessary to bring charges against an individual to be tested in our courts, it is only right and proper that that individual, having had the resource and power of the state brought against them, has as a matter of equality of arms and basic fairness the ability to defend themselves. To do that properly, they must be able to access lawyers who are as good, as well trained, and as competent as those who prosecute.
To do that, we have to be prepared to remunerate people. We cannot have a situation where criminal barristers are worse off, as they are under some aspects of the advocates’ graduated fee scheme at the moment, if they take on a complex and demanding case—for example, a multi-handed rape—as opposed to a single-handed offence of the same kind, because the extra work is simply not reflected in the fee. Those are precisely the cases— I did many of them myself—where experienced and sensitive advocates on both sides are critical. We are in danger of damaging the supply chain, as far as that is concerned.
It also cannot be right that the system does not remunerate defence lawyers for looking at the unused material in cases. Some of the main cases where miscarriages of justice have occurred, as you will know, Sir Henry, from your experience in these matters, are where there has been a failure in disclosure. Usually it is, as is often the case here, a result of unintended error. Although I have come across one or two cases where I could not say that that was the case, things genuinely go wrong, and it must be possible, in terms of the fairness of a trial, for the defence lawyers to be able to look through the unused disclosed material to ensure that there is nothing that might be exculpatory to their client.
That is only right and proper, and prosecutions have collapsed in high-profile cases because that was not properly done. People have been saved by the integrity of members of the independent Bar, on both sides, who took the opportunity, even though they were not going to be paid for the hours, to go through the unused material and highlight matters that meant that the prosecution could not safely proceed. It seems only right and just that the solicitors and barristers who were on legal aid on those matters should be paid for doing that, because we want to ensure that it is done properly. Let us face it: as those cases highlighted, the sooner it is done the fewer wasted hearings and adjournments, which have bedevilled some of those high-profile cases, there will be. It is not only the right thing but the common-sense thing to do.
We also need to recognise that early advice from solicitors at the police station is critical in criminal cases. Striking evidence was given to the Justice Committee inquiry that the average age of a police station duty solicitor is 47. Young people are not coming into the role because it is simply not remunerated well enough.
That all leads me to the conclusion that Lord Kerr got it right in his Supreme Court judgment on the Unison case. His view, to which I am driven by the evidence, was that regrettably, however good the intentions, the current arrangements under LASPO have adopted too transactional an approach to justice. He said that litigation is not merely a private transaction between parties; it also involves a greater public good. In that case, which was about employment tribunals, it involved the exposure of bad working practices and improvements that might stem from it, but the principle applies to any type of litigation. There is a public good in access to the courts that goes beyond the right—itself important—of the parties themselves to have access to justice. It is a bigger thing—a point that takes us back to our commitment to the rule of law, which my hon. Friend the Member for Cheltenham referred to.
I therefore urge a Keynesian approach on the Minister. Keynes was not always wrong, and he was certainly right about this. If we believe in following the evidence, as we all do in any legal process, and if the evidence indicates that things have gone too far the other way and we have the chance to change them, there is no shame in admitting that. It would be honest politics, good government and entirely consistent with the spirit that the Minister and her ministerial colleagues seek to bring to our approach. Where we can put things right, it is better to accept the position, act on the evidence and ensure that we have a better basis for legal funding and access to justice.
It is a great pleasure to serve under your chairmanship, Sir Henry, particularly given your personal interest in and commitment to this field of policy. It is also a great pleasure to follow two superb speeches that set out the broad range of topics that we need to cover. I congratulate my hon. Friend the Member for Hammersmith (Andy Slaughter) on securing the debate and on his opening speech. I strongly commend the speech of the Chair of the Justice Committee, the hon. Member for Bromley and Chislehurst (Robert Neill); I do not think I disagreed with a word of it.
The excellent briefings that we received in advance of the debate from a wide range of organisations come on top of a wealth of analysis that has already contributed to the debate, not only from the Justice Committee but from my own Committee, the Joint Committee on Human Rights, which produced a report including an analysis of many of the post-LASPO failings. The case has already been made, as we have heard today, but I wish to make a few remarks to convey not just an analytical concern for the post-LASPO world, but the real anxiety, passion and anger that so many people feel about the environment in which we find ourselves.
Yesterday morning, we marked Justice Week with a meeting of the all-party parliamentary group on legal aid. We were very pleased that the Minister came to speak to us and that the meeting was very well attended, including by the Bar Council, the Law Society, parliamentarians, a great many people from the not-for-profit sector, and solicitors. We heard a compelling case for the central role of legal aid and for ensuring access to justice. We heard the message that the Government need to hear thunder reverberating, because every single prediction made before the passage of LASPO has come to pass. We heard that the situation has declined to the point that the criminal Bar has thought it necessary to take strike action and the Law Society is taking legal action against the Government. It is unprecedented in modern times for those organisations to feel compelled to take such strong action, but they want the Government to hear exactly what is going on.
Sadly, in Justice Week, we also learned in the Budget that the Ministry of Justice, which with the Ministry of Housing, Communities and Local Government has already taken the largest cuts of any Department, is to be subject to yet another cut. It is an unprotected Department, and we now know that its budget will be cut from £6.3 billion to £6 billion. We are making the case for legal aid in a context in which justice funding is falling still further.
As we have heard, legal aid is in competition with many other areas of justice that are also under intolerable pressure. Almost every hon. Member in this Chamber has been present at debates that conveyed our anxiety about other creaking, breaking parts of the criminal justice system, so it is understandable that we are extremely concerned to ensure that the case for legal aid is not made at the expense of the prison service or the other parts of the justice system that are also under absolutely intolerable strain. In truth, the thunder is reverberating; it is just that the Government have not been listening.
I will not repeat in great detail the case that has been made so widely in this House and through the many forms of evidence submitted to the LASPO review about the consequences of areas of service falling out of scope and of the tightening of eligibility. The impact on providers has in turn had an impact on people—often the most vulnerable people—who need to be effectively represented.
I agree entirely with the hon. Lady’s argument, and I am glad that she referred to Justice Week. Does she agree that it might be worth while for every Member of this House to watch the Bar Council’s video about justice cuts, in which several providers, as well as hon. Members, talk about the impact on the individual cases they deal with?
Absolutely. I would love every Member of this House to watch that video and to be made aware of the case being made.
We know what is happening to legal aid providers. Law centres lost 60% of their income from legal aid post LASPO, and in the immediate aftermath we lost eleven law centres. I pay tribute to my own centre, Paddington law centre, which provides such an essential service. I also commend North Kensington law centre—this country’s first law centre, which I used to represent but is now just outside my constituency—for doing such extraordinary work in the aftermath of Grenfell.
Law centres are indispensable; they are an integral part of effective community life. The Chair of the Justice Committee was absolutely right to draw attention to the fact that justice is not a private transaction. These services—particularly law centres, but not only them—are part of a healthy community and a strong civic life. The consequences of undermining them go far beyond the individuals concerned.
It is a pleasure to serve under your chairmanship, Sir Henry. I congratulate my hon. Friend the Member for Hammersmith (Andy Slaughter) on securing what has been an excellent debate.
I start by picking up on a couple of comments from the contributions so far, not least on the matter of self-representation and the fact that it leads to an increased potential for miscarriages of justice. The hon. Member for Cheltenham (Alex Chalk), who has just left his place, mentioned the importance of the rule of law. Over the last couple of years, there has been an increasing reference to the rule of law in this country, as part of the debate on restoring our sovereignty; it is becoming much more important to people and is much higher up the agenda. It must be reflected in a strong and impactful justice system. Without it, we cannot continue to consider ourselves a bastion of extraordinary strength in our legal framework.
More and more in my constituency surgeries, I receive queries on matters such as immigration, although housing, welfare and family matters are also prevalent. I echo the comments of my hon. Friend the Member for Stretford and Urmston (Kate Green) about the advice that is being given to people in quite complex circumstances. Very often, people arrive at my door having been given advice on Home Office procedure or relevant sections of Home Office codes and regulations by paralegals or so-called legal advisers, who are not solicitors. They have paid thousands for this erroneous advice. Those in my office, who are also not legally qualified, have to untangle the mess. Thanks to the expertise of our own Library and the resources that we have access to, we are able to point them in the right direction and give the right kind of support that they need.
There is much in this debate that I am sure the Minister is listening to very carefully. As has been mentioned, a number of advice briefings have been circulated ahead of this debate. I read the Mencap briefing, which really resonated, especially in terms of the reference that it made to low levels of legal literacy among the general population, and to the fact that there is very limited access even to basic advice, with people increasingly becoming more reliant on organisations that are unable to take on legal cases. They might be able to advise up to a certain point, but they are unable to take the matter forward and provide representation, with the result that people, without that background of knowledge and perhaps without the skills to take their case forward fully are left without a full level of support in their case.
[Mr Adrian Bailey in the Chair]
The Mencap briefing refers to the suggestion that the Government should address the problems with the supply of specialist solicitors. That is the reason why I wanted to participate in this debate and the reason for my concerns about the lack of availability of solicitors, particularly in areas like Grimsby, and around responsive criminal matters. The Library debate pack reminds us that, as we have heard already, there have been
“significant changes to criminal legal aid, particularly in relation to means testing of applicants and to rates of pay for solicitors and barristers undertaking criminal work.”
It notes that most of that has come through secondary legislation. That has made it even harder for solicitors to continue to run their practices.
My hon. Friend the Member for Wrexham (Ian C. Lucas) highlighted the issue of access to justice in towns, but in towns such as Grimsby, lots of solicitors have closed down their practices and moved to nearby cities, where they are more assured of getting additional work, or they have completely changed their area of speciality. The awful thing is that that fact, which I believe has come about because of the limitations around legal aid, is now being used as part of the evidential base in consultations on future local court viability.
The hon. Lady makes a very good point about the impact on firms of solicitors. I wonder whether she might be interested to know that evidence given to the Justice Committee suggested that when the Solicitors Regulation Authority took data from some 2,000 firms, 5% were at high risk of financial difficulty and 45% were at medium risk—so half were running some risk of financial difficulty. The prime mover in that was exposure to having more than half their fee income from criminal or family legal aid. It is forcing firms out of business.
It is an honour to serve under your chairmanship, Mr Bailey. I thank the hon. Member for Hammersmith (Andy Slaughter) and the right hon. Member for Orkney and Shetland (Mr Carmichael) for applying for this debate, and I thank the Backbench Business Committee for granting it. It is an honour to follow the hon. Member for Great Grimsby (Melanie Onn).
Every single one of us here has similar concerns about the severity of the cuts. Today we have been highlighting the impact that the LASPO Act has had on our constituents and our communities over the past five years. I will speak specifically about Wales because of the particular issues there. They will of course be common to much that has already been raised, but it is important that particular needs are considered. Wales has experienced the largest decline in legal aid providers over the past five years—a decrease of 29%—and today I will talk about the impact on housing, criminal legal aid, and the experience of victims of crime, particularly in the family court.
Legal aid in the housing sector has been particularly hard hit owing to the rates set by the Government, which have left Wales with only one housing legal aid provider in half of the procurement areas and a host of problems. First, families on low incomes might not be able to travel to see the only provider in their area, which might be located many miles away from where they live, because of travel costs and the availability of public transport. That is particularly true in rural areas. The inability to seek essential legal advice can, in the most extreme cases, result in homelessness. Secondly, one firm in a large area might not have capacity to provide advice to those who need it. People requiring legal aid advice on housing issues often need advice urgently and cannot afford to go on a waiting list. Thirdly, conflicts of interest can arise because one law firm cannot represent both tenant and landlord, or represent a tenant if the landlord is engaged with the firm on another matter. We have a real concern about conflicts of interest.
I welcome the recent High Court ruling in favour of the Law Society, confirming that the UK Government’s latest cuts to the pay of criminal lawyers are unlawful. Criminal law duty solicitors, as we have heard, are already in high demand, and we have good grounds to believe that the situation will worsen if present trends continue. In Wales, where we have a specific need for people who can operate professionally through the medium of Welsh—a very real need in the county of Gwynedd and other communities in rural Wales—the shortage is even more exaggerated. In future, who will be able to provide that which we have a right to—justice in English and Welsh—if we do not have those people coming through?
The hon. Lady might like to know that the figures provided to the Justice Committee in relation to mid and west Wales suggest that 60% of criminal law duty solicitors were over the age of 50. That situation clearly is not sustainable.
The hon. Gentleman has just anticipated one of my next sentences. We have an ageing specialist profession, many of whom are able to operate through the medium of Welsh, and we are not seeing those skilled and important individuals coming through. Unless the Government reverse the cuts and provide an incentive for more people to train in criminal law, they will seriously threaten the right of individuals to access independent expert legal advice in either Welsh or English free of charge when detained by the police.
Finally, I want to explain how the cuts to legal aid are putting victims of domestic abuse, stalking and harassment in further danger and forcing them to come face to face with their abusers. Even if that was never the intention, that is the result. A survey of 122 victims of stalking and domestic abuse conducted by Plaid Cymru found that 55% of victims had court proceedings taken out against them by their abusers, despite restraining orders being in place, and two thirds of the victims then had to appear in court. Although it might be unintended, that snapshot is extremely revealing. Due to the cuts in legal aid, many abusers were not given free legal representation, so they represented themselves. It is distressing enough for a victim of abuse to have vexatious proceedings—they are too often vexatious—taken out against them and to have to appear in court, but a third of the victims had to go through the trauma of being personally cross-examined by the person who had been stalking and relentlessly harassing them, who had made their lives such a misery that they had had to take out a restraining order against them. Again, that might not have been the intention of the legislation, but that is the result. It is in no circumstances safe; nor is it a responsible or just way to treat victims.
The situation is the result of unyielding cuts to legal aid. I do not think that the UK Government anticipated that victims of abuse would bear the brunt of the cuts in such a way, but unfortunately that is the case. Many people predicted such results, and the evidence that has come to pass proves them correct. Again, I echo fellow Members here when such evidence is presented to us. I sincerely hope and I believe that the Minister feels strongly on this matter, too. We need to resolve this. We have the evidence and time has passed. We are seeing the evidence in our constituency meetings and hearing it from legal experts, of whom I am not one, but this issue cries out to be addressed.
The principle of equality before the law should be upheld. A valid justice system must enable everyone to access legal advice. It must not remain a privilege afforded only to the wealthy.
It is a pleasure to serve under your chairmanship, Mr Bailey. I congratulate the hon. Member for Hammersmith (Andy Slaughter) on securing the debate. As the shadow Justice Minister when the Legal Aid, Sentencing and Punishment of Offenders Act 2012 was going through the House, he has considerable knowledge of the legislation. He mentioned the law centre in this constituency, but he did not mention that he has been a board member of that law centre for 30 years. I am sure he has contributed to the services that it provides. Like him, I pay tribute to the work that Carol Storer has done over the past decade as the director of the Legal Aid Practitioners Group. This week, she was rightly nominated for LawWorks’ outstanding contribution to access to justice award.
We have heard some very powerful speeches from across the House, and I have listened carefully, as have my officials. My hon. Friend the Member for Bromley and Chislehurst (Robert Neill) made the important point that this debate is about matters that affect people’s lives. At various points, an impartial observer might have thought that this Government spend a paltry sum, or no money at all, on legal aid but that is not the case at all. Legal aid has always been and remains available for the highest priority cases where people are at their most vulnerable: when they are about to be made homeless or to lose their children, or they are accused of a criminal offence that may result in the loss of their liberty.
I want to make it clear, as I have many times, that the Government make a significant investment in legal aid. We spend £1.6 billion a year on it, which is a fifth of the Ministry of Justice’s budget. That is in addition to other sources of funding to ensure justice and the fair determination of rights: in the last three years we have spent almost £6.5 million in addition through the litigants in person support strategy.
The Government have not stood still on legal aid. Over the past year, we have improved its provision in a number of areas. In January we broadened the accepted evidence for domestic violence and reduced all time limits. In February we broadened the scope of legal aid for prisoners, and in June we updated the legal guidance for inquests on deaths in custody. I recently committed to laying an amendment to LASPO, to bring immigration matters for unaccompanied and separated migrant children into the scope of legal aid. We are also reviewing the provision of legal aid for parties involved in inquest proceedings, examining both the scope and eligibility criteria.
I recognise and welcome the positive changes that have happened since the Minister has been in the Department. On the total spend, does she agree that, although we provide significant sums and compare well with other common law jurisdictions, a fifth of Ministry of Justice expenditure is a fifth of 1% of total Government expenditure? When we look at the scope for additional funding, we are looking at increasing a fraction of a fraction.
My hon. Friend is very knowledgeable and experienced in many matters, including this one. He does a great amount of work on behalf of the legal aid professions and people who use the services we provide through Justice. As always, he makes an important point. I have listened carefully to all the points that have been made in this debate and throughout my time as Minister.
I will answer some of the many points made in the debate—you are right that I will not have time to respond to all of them, Mr Bailey. The hon. Member for Hammersmith spoke about the provisions in the Budget, but failed to mention the provision to build a new prison at Glen Parva, £30 million for prisons, and £20.5 million for the wider justice system.
A number of Members mentioned that legal aid is not provided in a number of areas. It is important to be clear about where legal aid is available and where it is not; we are reviewing where it is not available and has been taken out of scope. One reason why people do not access legal aid may be that they do not think it is available at all. Where we provide it, we need to say loud and clear that it is available. Some Members mentioned the lack of availability for housing and medical negligence, but the hon. Member for Westminster North (Ms Buck) rightly acknowledged that legal aid is available when a person’s house is at risk of repossession.
(6 years, 3 months ago)
Commons ChamberThe hon. Gentleman’s arguments are ones that the legal community often advance, whether in this arena or others, to justify very high levels of legal and judicial intervention, which is often very expensive. We need to maintain a sense of proportionality, lest legal costs and expenses get out of control.
I shall in just a moment. I have seen figures suggesting that 47% of the pay-outs made by insurance companies for these relatively minor road traffic injuries get consumed by legal fees. If such a high proportion of pay-outs is being consumed by expenses, it suggests to me that the entire system is out of proportion, and that some reform is therefore needed. I give way to the Chair of the Justice Committee.
I am afraid that my hon. Friend is not making the best case on the Government side that I have ever heard. Does he accept that lawyers act in the interests of their clients and that when they do, they are bound by professional obligations? Is not a better point that we should assist people through the system by working up a very good and accessible online portal, which the Minister has sought to do, so that we find the means of balancing cost with people’s ability to seek access to justice? I gently say to my hon. Friend the Member for Croydon South (Chris Philp) that that is perhaps a stronger point that the Government have been able to advance. The Minister has taken care to delay the implementation of aspects of the Bill in order to get the online portal up and working, and I suggest that that might be a more fruitful area to consider.
I am always delighted to take advice and guidance from such a distinguished, learned and experienced Member as my hon. Friend the Member for Bromley and Chislehurst (Robert Neill). He adds further weight to the case by drawing attention to the benefits of the online portal, which I hope could be used to further simplify such matters and enable claimants to manage them, rather than having to rely on lawyers.
Clearly the number of injury claims made via an insurance company is not related to the number of police officers on the street. The hon. Lady mentions the slight but welcome reduction in the number of whiplash injuries. Over the same period, the number of claims to insurance companies for back injuries has increased, so the total number of claims is down only very slightly over the last couple of years, and is still dramatically up over 10 years, which is clearly a more meaningful period. When the two are taken together, therefore, there has not been a significant reduction.
The House will know about my declaration in the Register of Members’ Financial Interests. I am glad that my hon. Friend has mentioned claims management companies. Would he agree that some of the concerns about balancing access to justice with discouraging fraudulent claims—we all agree about them—would be met by continuing to revise and strengthen the regulation of claims management companies, which are not regulated to the degree that solicitors are, and in particular by bearing down on the employment of paid McKenzie friends—non-qualified, quasi-lawyers who are particularly rife in the claims management sector? Will he work with me in persuading the Government to move swiftly to ban them?
Once again my hon. Friend makes a very good point—two very good points, in this case. The operation of claims management companies, which have been actively engaged in encouraging the public to commit fraud, has had an extremely negative effect in this area. I want an outright ban on them making cold calls, but I am slightly concerned that even if the Government take all the action that he and I would like, these people, being extremely adept in such matters, would adapt their behaviour to circumvent the legislation and regulation. For example, they might start making cold calls from outside the UK’s legal jurisdiction, as we saw following the ban on referral fees that came into force two or three years ago. Insurance companies were banned from receiving referral fees from claims management companies, but some insurance companies and claims management companies sought to circumvent the ban by setting up what they euphemistically termed “alternative business structures”, whereby the claims management company effectively remunerated the insurance company via an equity stake rather than a referral fee. I am therefore concerned that even if we take all the action we can, these often rather dubious characters will find new and ingenious ways of circumventing the legislation.
My hon. Friend makes a powerful point, which should, to some extent, reassure the hon. Member for High Peak, some of whose arguments rested on damages in the workplace. The rise to £5,000 does not relate to damages in the workplace. As has been pointed out, it relates only to whiplash injuries suffered in a vehicle.
I am grateful to the Minister for giving way. I take on board his point that the appropriate test for a small claims regime is complexity or otherwise, but will he recognise that there is a risk that perceived complexity might make claimants vulnerable to the operations of claims management companies, which do not have the high standards and good regulation of personal injury lawyers, as he rightly recognises? What safeguards do the Government intend to put in place beyond this Bill and more generally to make sure that we do not have a displacement effect from well-regulated personal injuries lawyers to unregulated, unscrupulous claims managers of the kind to which my hon. Friend the Member for Croydon South (Chris Philp) and others referred? What more can we do to safeguard against that unintended consequence?
This is an issue on which my hon. Friend has been very thoughtful in his role as Chair of the Justice Committee. There are obviously three things that we are endeavouring to do and we are open to more ideas. One of them, of course, is that, through this package of measures, we disincentivise claims management companies from having a significant financial interest in pursuing this type of case. The second, as my hon. Friend pointed out, is the setting up of an online portal to reassure individuals that they will have a more predictable, more transparent and more straightforward system for pursuing their claims in person. Finally, through consultation with the judiciary, we are looking at the issue of paid McKenzie friends. We are waiting for the judiciary to report back so that we can take action on that issue.
It is a pleasure both to speak in support of the Bill and, unfortunately, against the amendment put forward by the hon. Member for Ashfield (Gloria De Piero). It is really important that the Bill is proportionate in achieving the outcomes we want of ensuring that the public get the protection they need from injuries that can be so devastating, while at the same time compensating them in such a way that we do not burden the wider consumer with unsupportable bills. Earlier, I spoke about the fact that premiums need to remain affordable.
Amendment 2 would remove the ability to set a fixed tariff for whiplash compensation in regulations. As I mentioned earlier, the tariff system will ensure that claimants receive a proportionate level of compensation. This will significantly reduce and control the spiralling cost of whiplash claims and disincentivise unmeritorious claims. As with any such tariff system, I can understand the concern that it may not provide the flexibility necessary to ensure that compensation accurately reflects the true nature of someone’s injuries.
However, the Government have taken a number of important steps to ensure that such flexibility still exists. First, the tariff would not be flat for all cases, but staggered, depending on the severity of injury. Secondly, in addition to a tariff payment, all claimants will continue to receive special damages covering compensation for any actual financial losses suffered as a result of their accident. Finally, clause 5 gives the court discretion to deviate from the tariff in exceptional circumstances and when it is clear that a higher level of compensation would be appropriate.
This therefore seems to me to be exactly the type of Bill we should be bringing forward. It is sensible, and it does indeed allow us to provide the protection that people need, without the risk of putting up premiums. I do not believe that amendment 2 would achieve very much, other than wrecking the central point of the Bill, which as I say is to achieve such an upsurge in affordability.
My hon. Friend makes a fair point. Opposition Members have referred to the Justice Committee’s report, but has he noted that although the noble Lord Woolf was indeed critical of the changes in the terms that have been quoted today, the noble Lord Brown of Eaton-under-Heywood, a former justice of the Supreme Court, did not have an in-principle objection to the tariff system? Does he agree that the devil in the detail is what will be in the regulations on the exceptional circumstances uplift and how that will apply? Is he, like me, pleased to see that there is a commitment to consult the Lord Chief Justice on those regulations, and does he agree that it is important that that consultation is real, thorough and detailed?
My hon. Friend speaks with the authority of not just a Select Committee Chair but someone who thinks deeply about these issues. There are safeguards built into the Bill, precisely to ensure that we achieve the robust, balanced and responsive framework that good legislation should aim for. I noted earlier that the Lord Chancellor will have a duty to keep all the relevant legislation under review on a triennial basis, so there will be checks to ensure that compensation thresholds do not become wildly out of kilter. Indeed, part of the reason why the Bill is necessary is that the thresholds have been allowed to drift for a very long time without being amended. That has led to a more dramatic uplift than is customary or than I would ever hope to see in future. We want to ensure that we always have a rolling programme rather than dramatic changes, which unfortunately affect more people than a more staged mechanism would. However, that does not mean that there is not a case for acting, so unfortunately I cannot support amendment 2.
My hon. Friend is making some fair points. He says that this is not necessarily a role for judges, but would he conclude that while it may well be, as Lord Brown said in the other place, appropriate for Government to legislate for tariff-isation as a matter of policy, the views of the judges must be fully taken into account by way of consultation in setting what the level or quantum of that tariff should be and how it should operate and what practical impacts it should have?
My understanding given the nature of the Bill is that there is ample scope for a dialogue or conversation between judges—the judiciary—and the Government. However, what I am reluctant to see, and what I think many of our constituents and voters would be reluctant to see, is the power exclusively residing in the hands of judges. The Government have a duty of care to the taxpayers and to people who have insurance to try to keep these costs low. It is very funny to see Opposition Members frowning when I suggest the Government have a role to play. They are on the side of the political argument that believes in wholescale nationalisation; they want the Government to control everything. Yet in this particular instance they are expressing surprise and bewilderment, and I suggest that is completely spurious and fake.
Does my hon. Friend agree that the logic of his position, which I understand, is that if we are to have credibility in taking this policy decision, those savings must actually be passed on to motorists? Does he recognise that there has been some cynicism about that in the past? We need to have mechanisms to measure very carefully that the insurance industry comes up to the mark, because it has not always had a terribly good track record in the past on that?
I agree with my hon. Friend. He is right that the insurance companies have in the past—I stress in the past—had a questionable record on some of these issues, but I repeat what I said on Second Reading: it is entirely unhelpful to bash the insurance industry or denounce it as a bunch of shysters who are ripping the public off. As I said in that debate, the insurance industry is one of our world-leading industries. We should celebrate it and be grateful for it: our insurance industry is a world-beating industry. There are not that many industries left in Britain that we can call truly world class, but the insurance industry happens to be one that is. It was nauseating and disconcerting on Second Reading—it has not happened so much today—to hear speaker after speaker on the Opposition Benches denouncing the insurance industry. They were scandalised that, God forbid, the industry should make profits, as though making a profit were in itself a moral crime. We have to try to shift the nature of the debate. The insurance industry is a world-beating industry. As my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) has suggested, we need to have some oversight to ensure that savings are passed through to the customers, our constituents.
I again thank all Members who have participated.
Amendment 2 relates centrally to the core of this Bill, which is about the question of the setting of tariffs. We have discussed this with great verve and vigour from many different sides. The first debate that has taken place in the last hour and a half has been about the purpose of these tariffs: why we are introducing them in the first place. The reason why comes out of a perception of an anomaly. That anomaly can be seen either, as my hon. Friend the Member for Bexhill and Battle (Huw Merriman) pointed out, in terms of the fact that the number of car crashes is coming down and cars are getting safer, but at the same time the number of whiplash claims over the same period has increased dramatically; or, as my hon. Friend the Member for Spelthorne (Kwasi Kwarteng) pointed out, in terms of national differences. There are many more whiplash claims from Britain per head of population compared with Germany or France, leading to my hon. Friend speculating on biological differences.
The second debate has been about proportionality. That argument was made by, for example, my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke). He was essentially arguing, along with the former president of the Supreme Court, Lord Brown, that there needs to be a closer relationship between the amount of compensation paid and the nature of the injury suffered. As Lord Brown said in the House of Lords:
“lesser injuries were altogether too generously compensated, certainly in comparison to the graver injuries”.—[Official Report, House of Lords, 10 May 2018; Vol. 791, c. 306.]
The idea of proportional compensation for a type of injury was central to the argument of my hon. Friend the Member for Middlesbrough South and East Cleveland.
My hon. Friend the Member for Dudley South (Mike Wood) reminded us that the former Labour Lord Chancellor, Jack Straw, had serious concerns about compensation for soft tissue injury and that this form of car insurance is mandatory, putting a particular obligation on the House of Commons when it considers it. But, characteristically, the most “sensible, proportionate and calibrated” speech came from my hon. Friend the Member for Cheltenham (Alex Chalk), who, by using those three adjectives to define the nature of the tariffs, brought us, in a huge move, from jurisprudential reflections on the nature of tariff systems to a disquisition on rural transport in Cheltenham. My hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) brought it down to earth with a good focus on safety in vehicles.
I cannot let the Minister move on from the important and significant points of my hon. Friend the Member for Cheltenham (Alex Chalk) without observing that he emphasised the role of the Lord Chancellor in consulting with the Lord Chief Justice in the setting of the tariffs. That is an important safeguard. Can the Minister tell us a little more about how it is envisaged that that will work?
Absolutely. This is a concession that we have inserted into the Bill partly due to pressure from my hon. Friend, the Chairman of the Justice Committee, and from other Members, including my hon. Friend the Member for Cheadle (Mary Robinson). It means that the Lord Chancellor, when reflecting on the nature of the tariff in a judicial capacity, will consult the Lord Chief Justice. That concession in the Bill, combined with the strong emphasis on judicial discretion allowing the tariffs to be uplifted, will be central to our attempt to reconcile a tariff-based system with the tradition of English common law. Through it, we hope to address some of the concerns raised by Lord Woolf.
We have discussed the purpose of the Bill, and the way in which getting rid of the tariffs as suggested in amendment 2 would undermine the central purpose of getting a more affordable system into place. We have made a number of concessions in order to meet concerns raised by many distinguished colleagues around the House, including individuals with experience of personal injury law and those with experience as constituency MPs of the honourable and serious work done by personal injury lawyers. I shall show respect to the House and touch on some of those concessions.
In the initial proposals put forward by the Chancellor of the Exchequer in the autumn of 2015, the suggestion was that there would be no general damages payable at all. That was roughly the argument made by the former Labour Lord Chancellor, Jack Straw. We have moved away from that position and accepted that general damages should be paid, but we have suggested that there should be a tariff for those damages. As my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) has said, we will consult the Lord Chief Justice on that tariff and there will be judicial discretion. There is a precedent on tariffs—they exist in Italy and Spain—and there is even a precedent in English common law in the criminal injuries compensation scheme.
The benefits that we believe a tariff system will deliver include a reduction in the cost of this form of transaction and, hopefully, through that, a reduction in the number of potentially exaggerated or fraudulent claims. That would have an advantage for general public policy in that people would not be encouraged to make fraudulent claims. We believe that the system will also provide certainty and predictability to claimants, especially when they are connected to an online portal that will ensure that they follow a particular sequence. They will proceed to the online portal, then, for the first time, they will be required to go to a medical practitioner specialising in whiplash claims who would give them a prognosis of, for example, six months, 12 months or 24 months. On the basis of that prognosis, through the portal, a fixed tariff would then tell them exactly how much they would be given. This should mean that in the overwhelming majority of cases there would be absolutely no requirement to proceed to court. In any cases where we did proceed to court, we would rely on the small claims process in order to settle the claim, using the tariffs to reinforce the process.
The speeches so far have not touched on Government amendment 1, which I hope all Members, including Opposition Members, will be happy to accept. Clause 5(7)(a) states that the term “tariff amount” means
“in relation to one or more whiplash injuries, the amount specified in respect of the injury by regulations under section 3(2)”.
Clause 3(2) refers to the
“amount of damages for pain, suffering and loss of amenity payable in respect of the whiplash injury or injuries”.
In other words, clause 3 refers to “injury or injuries”, whereas clause 5 refers simply to “the injury”. The proposal in Government amendment 1, recommended by parliamentary counsel, is that we deal with the discrepancy by inserting “or injuries” after “the injury” in clause 5(7)(a). I hope that the Opposition will be happy to accept that suggestion.
That brings us back to the central issue of the way in which tariffs are set. The hon. Member for Hammersmith (Andy Slaughter) focused a great deal on the notion that the tariffs were somehow inequitable in terms of the damage that individuals have suffered. The hon. Member for High Peak (Ruth George) said several times that we should not refer to these types of injuries as minor. I want to emphasise that the phrase “minor injuries” is derived from Judicial College guidelines, not from the Government or any political party. It is simply a long-standing convention to refer to injuries of under two years’ duration as minor injuries, and that relates to Sentencing Council guidelines for injuries of under two years’ duration.[Official Report, 3 December 2018, Vol. 650, c. 6MC.]
As hon. Members have pointed out, people who suffer, particularly from whiplash injuries of longer duration, might also lose earnings, have considerable medical costs, have to go to a physiotherapist and so on. Although those arguments were well made, for example by the hon. Member for Bridgend (Mrs Moon) on Second Reading, they overlook the central fact that the tariffs will apply only to general damages. An individual who has suffered loss of earnings or who needs extra care costs can apply for special damages in the normal way. The Government propose no change to special damages.
On the arguments of the hon. Member for Hammersmith about the levels of the tariffs, we have attempted to achieve a reduction in the tariff at the lower end. For example, an individual who suffers an injury of under three months’ duration could receive damages considerably less than those in the current guidelines, but I hope that the hon. Gentleman accepts that, as we approach a duration of two years, the compensation offered begins to merge much more closely with the existing guidelines at a level of £3,600.[Official Report, 3 December 2018, Vol. 650, c. 6MC.]
In addition, as the Chairman of the Justice Committee pointed out, the levels of the tariffs are currently proposals about which the Lord Chancellor will consult the Lord Chief Justice. He will do that not just once but regularly, on a three-yearly basis, to ensure that our calculations on pain, suffering and loss of amenity reflect judges’ views.
It must be remembered that, ultimately, judgments on pain, suffering and loss of amenity are difficult. As my hon. Friend the Member for Cheltenham (Alex Chalk) pointed out, the question of how much compensation somebody receives for a loss of earnings is relatively easy to calculate, because the figure can be derived from the earnings. The amount of money to which someone is entitled for medical costs is, of course, directly derived from the cost of medical care provided. However, in the case of general damages, a judge must attempt to decide the subjective impact of pain on the individual and assign a financial cost to it. That cannot be anything other than a subjective judgment. There is no objective scientific formula for comparing pain with cash, because the cash is designed not to eliminate that pain, but in some way to acknowledge it. Whether we are talking about the criminal injuries compensation scheme, under which our constituents frequently come forward with examples of what they rightly and subjectively experience as a huge discrepancy between the depth of horror they have suffered at the hands of criminals and the amount of compensation offered, or the tariffs for pain, suffering and loss of amenity under the Bill, in the end the compensation provided cannot constitute anything other than a symbolic judgment, with the court or the Government acknowledging that no amount of money can remove the pain, but with the amount designed to be a public recognition that that pain exists.
The former Justice of the Supreme Court, Lord Brown, is an important guide, and his statements in the House of Lords give us all a sense of reassurance on a tricky bit of law. He feels that two important principles are at stake. The first is that there is a moral hazard and societal issue taking place, in that both the incidence of car crashes and, on a national comparison with Germany and France, the disproportionate number of whiplash claims compared with what would be expected both in terms of automobile design and the biology of the human body, need to be addressed—in other words, fraud needs to be addressed. The second is that there has been an anomaly in law whereby some of the graver injustices, and graver injuries and suffering, have been proportionally undercompensated compared with cases of suffering minor whiplash injuries—the majority of cases before the courts—which involve a duration of only three or six months.
Unfortunately, tempted though I am to respond, as you point out, Mr Deputy Speaker, I am not entitled, particularly following some of the comic interventions from the hon. Member for Perth and North Perthshire (Pete Wishart), to speculate on what the Scottish Government think they are doing. My hon. Friend is absolutely correct, however, that they chose to withdraw from this Bill.
We have talked a great deal about whiplash injuries and how we have attempted to address them, and I am happy for others to return to that question in interventions if they wish to do so, but we have perhaps had less time to address another central issue, which is the second part of the Bill, on the discount rate.
I am pleased the Minister is mentioning that, because although we have concentrated on some controversial areas, putting the discount rate on a more modern footing is important and largely welcome, as is of course the prohibition on settlement without medical reports, which again has not been touched on but is very significant and an advance.
I want to use this opportunity to thank the Minister for what he said about the Justice Committee and the way he engaged with us and me personally. We have raised caveats with some of the objectives, and he has met us on a number of issues, if not all of them, which has enabled those of us who want to keep an eye on this and hold the Government and the industry’s feet to the fire to adopt Lord Brown of, um, Eaton, um—
That one. I ought to know him, as a fellow bencher of Middle Temple, and to get his title right. The noble Lord Brown has said that with some reluctance—because it is a balancing act—he can accept the Government’s intentions in this regard. The way the Minister has handled this difficult balancing act in the Bill has made it much easier for a number of hon. Members to do the same.
I am tempted to reflect on the question from my hon. Friend the Chair of the Justice Committee. There is a central issue and challenge at the heart of the Bill. Dealing with this perfect storm of problems—unprovable conditions, high payments, recoverable costs and the actions of the insurance industry—is not easily done through primary legislation, so I pay tribute to right hon. and hon. Members on both sides for their focus on not just the primary legislation but elements of secondary legislation and some of the requirements around it.
The only way this reform will work—the only way to prevent excessive whiplash claims—is by being very nimble in anticipating exactly how claims management companies will operate and predicting how this phenomenon could change in the future. As my hon. Friend has pointed out, that means putting in place an absolute insistence that someone must have a medical examination. At the moment, many of these claims are settled without anybody having any medical examination at all. There must be a medical examination, and it must be conducted by a qualified GP, who is currently allocated through the portal in a random fashion so that people are not in a position to be able to conspire in any way as a result of the kind of doctor whom they are given. An approved GP with the right kind of training, or a medical specialist of another sort, will then give a prognosis that will allow them to proceed in a much more straightforward way.
That brings us to the second aspect, which, again, is not primarily a question of primary legislation. I refer to the design of the online portal. It is important to ensure that, as cases move to the small claims court, people have a straightforward, intuitive way of logging claims. One of the things that we will be doing over the next year is testing and retesting the portal in as many ways as we can to ensure that it actually works.
My hon. Friend has made a good point, but there is, of course, a delicate balance to be achieved. It is absolutely true that really good online systems can transform people’s lives and make access to justice much easier for them, but, equally, the Government do not always have an unblemished record when it comes to the delivery of IT systems. It is important to ensure that the system really works and that we have tested it again and again before rolling it out, because otherwise a system designed to increase access to justice may inadvertently decrease that access through the malfunctioning of the online portal.
I am very grateful for my hon. Friend’s generosity.
Some of the powerful evidence given to the Justice Committee came from two members of the judiciary who spoke about the potential unintended consequences and adverse impacts on the courts of the inability of an increasing number of litigants in person to work their way through the portal. Will my hon. Friend undertake to ensure that throughout the ongoing work on its design, the issues raised by members of the judiciary will remain central to the discussions, and that they will have a full role in the testing and roll-out?
The answer to both those questions is yes. An important concession was made in the House of Lords to extend the amount of time for testing, so that there is more time in which to make sure that the portal has been properly tested by, among others, the judiciary.
Part 2 of the Bill relates to the discount rate, and results from a very sudden change in the way in which compensation was paid to catastrophically injured victims. After 16 years in which the discount rate was set at a positive 2.5%, the last Lord Chancellor but one decided to reduce it to minus 0.75%, which radically changed what happens when someone is allocated a lump sum.
Let me remind the House of the formula that is applied. If, Mr Deputy Speaker, you were attempting to receive compensation for a projected 10 years of life, you were seeking £100,000 of care costs for each of those years, and inflation was, for the sake of argument, zero, you would receive only £1 million to cover you for your 10 years of projected life. Obviously, if inflation was higher, the real-terms increase in your care costs would mean that you would have to be afforded more, and the calculation that would need to be made in the awarding of the money would be how much of a return you could reasonably expect to receive for your money. If you could reasonably expect to receive a higher return for your £1 million, it might be possible to cover you for more years, and vice versa: fewer years would mean a lower return. The discount rate has been applied since the 1970s by the judiciary, and since 2001 by the Lord Chancellor, to enable the courts to calculate the fair rate to apply to a lump sum in the case of catastrophic injury. That sudden change from 2.5% to minus 0.75% meant that in the single year 2017-18 the NHS faced £404 million of costs. Projected forward at that rate, there are potentially not just hundreds of millions, but billions, of pounds of costs attached to the public Exchequer and through insurance premiums on the public themselves. Therefore, through the pre-legislative scrutiny conducted by the Justice Committee and the Government Actuary’s Department we have attempted to strike a proportional balance between the interests of often very vulnerable, catastrophically injured victims and those of society as a whole.
(6 years, 3 months ago)
Commons ChamberThe reoffending rate has actually fallen since then, but we recognise that issues need to be addressed. That is why earlier this year I announced a series of reforms to the probation system, including spending an additional £22 million on “through the gate” services to address this specific point.
One problem with “through the gate” is not who delivers it, but the fact that too often the interventions start so late on in the prisoner’s career. If six months is appropriate in terms of opening bank accounts—sensibly, it is—is it not sensible that resettlement interviews and work should be started at least at that time, if not earlier, rather than at 12 weeks or so, as we currently have it?
My hon. Friend, the Chairman of the Select Committee on Justice, raises an interesting point. The point I make to him is that we need to make sure that this system is working. There is scope for improvement, and, as I say, we have announced additional expenditure in this area, but he is right to say that this is not about who does it, but how it is done. There are steps we can take to improve it.
We take the report very seriously, as we take all reports, including the recent report on domestic violence. It is absolutely right to say that we need to improve the risk assessment, the programme plans and the frequency of meeting. We are doing a consultation at the moment, to which we invite the hon. Lady to make a submission, on exactly what we can do to tighten up procedures for the CRCs. They have reduced reoffending by 2%, but there is much more that we can do on the quality of delivery.[Official Report, 22 October 2018, Vol. 648, c. 3MC.]
Given that, yet again, the recruitment round of High Court judges has fallen short, and given that many distinguished retired judges are kept busy as arbitrators and wish to continue working, is it not time to look again at whether the arbitrary judicial retirement age of 70 is out of line with modern practice?
This is an issue that we continue to look at. I think it is a finely balanced matter, and we continue to look at the evidence. The argument is sometimes made that if we increase the retirement age, we will increase the age at which people apply to become judges. We will continue to look at the matter.
(6 years, 4 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank the shadow Secretary of State for Justice for his questions. They are serious questions, and this was a serious failing in that prison. I shall try to answer them one by one. The financial cost to G4S of us stepping in will be very considerable. G4S already estimates that it is losing on this contract. It is to a great extent paid according to the number of prison places. Specifically, therefore, the removal of 300 prisoners from that prison will impose a direct financial penalty on G4S, which will be covered by G4S itself. I can also confirm that the entire cost of this step-in will be covered not by the taxpayer but by G4S, because we will withhold the payment we would normally make in line with the contract with G4S to cover those costs.
The shadow Secretary of State also asked whether we would put exactly 32 officers into the other challenged prisons. We are not in a position to specify the exact numbers, but the broad approach that we would take to Birmingham is the same as the approach that we would take to the other public sector prisons. That approach involves focusing first on the inflow of drugs into those prisons, through the use of intelligence disruption for organised criminal groups as well as through the use of scanners. We are putting nearly £6 million-worth of investment into drug interdiction and scanners.
Secondly, our approach involves focusing on basic decency, and nearly £30 million-worth of extra investment is going into living conditions in our prisons. Thirdly, there is a focus on education, and the Secretary of State’s education and employment strategy is central to this, giving prisoners purposeful activity within the prison walls and ensuring that they get jobs on release, thereby reducing reoffending and protecting the public.
Finally, and perhaps most importantly of all, we are focusing on supporting our hard-working prison officers with the right training in leadership and management skills. They are doing an incredibly tough job outside prison doors. They are facing unprecedented levels of challenges with the new psychoactive substances coming in, and we really need to support them. We are doing that through the Assaults on Emergency Workers (Offences) Bill introduced by the hon. Member for Rhondda (Chris Bryant) which will double the sentences for people who assault prison officers and other emergency workers. We are also doing it through additional training for prison officers before they go on the wings and supporting them through training as they continue.
The shadow Secretary of State asked about an independent commission. Respectfully, I would argue that we already understand very well what happened at Birmingham Prison, without the need for an additional independent report. The independent monitoring board has produced a full report on Birmingham Prison. The chief inspector of prisons has also produced a full report, and we have looked closely at Birmingham Prison over the past few weeks and months. Unfortunately, the story at Birmingham Prison is a relatively familiar one. It is about drugs, about violence and about management and training. There is no great secret there. The question of G4S bidding for future prison contracts is a hypothetical one, and no such contracts will be let for a number of years. However, we will of course, in accordance with all our rules, look seriously at the past record and performance of the companies involved, including G4S, before considering it for a tender.
The Minister and the Secretary of State are to be commended on their prompt action. The Minister should be commended on his swift involvement, and I thank him for contacting me, as the Chair of the Justice Committee, so quickly. Does he agree that no pattern emerges in the evidence to show that there is any distinction between the problems that arise in our prisons that relates to the public or private nature of their ownership and management? Two patterns do emerge, however. One is a consistent history of failure in our old Victorian local prisons, be they run by the public or private sector, and the second is a persistent failure by the Prison Service, whether acting directly or through contract, to act upon the recommendations of Her Majesty’s inspectorate of prisons—a litany that has been picked up by the chief inspector. What are the Government going to do to address those two clear patterns of failure?
I will take those two matters separately. As for responding to the inspector’s recommendations, we have changed—the Secretary of State for Justice has driven this through—how our management systems work to put the inspector’s recommendations and reports at the heart of the way we set objectives for the Prison Service. We had our own independent assessment under the previous system, but we expect the House to see that how we manage prisons much more closely reflects inspection reports in the future.
On the question of old Victorian buildings, there clearly is a pattern, but it is not an absolute pattern. There are old buildings, such as Stafford, that are well run, good prisons, and there are new prisons, such as Nottingham, that have managed to get themselves into trouble despite the new buildings. However, generally speaking, running an old Victorian prison adds to the problems, and we should ensure that our investment in 10,000 new places endeavours to remove the worst-affected prisons from our system.
(6 years, 4 months ago)
Commons ChamberI want to make some progress.
I am aware that there has been concern on both sides of the House about the inclusion of vulnerable road users—for example, cyclists, pedestrians and motorcyclists —in the proposed small claims track rise. I am grateful to Members for signalling in their arguments how such road users may be disproportionately affected by this measure.
I am very grateful to hear the Secretary of State say that, because this issue was flagged up by the Select Committee on Justice in our report. If he is going to say that it is his intention to exclude those vulnerable road users from the Bill, that would be a most welcome recognition by the Government of the evidence on the matter.
I think that it would be fair to say that personal injury lawyers have demonstrated adaptability in recent years and that the sector has proved to be resilient. Of course, the purpose of our compensation regime and insurance system is to ensure that those who should be compensated are compensated, and that is what we seek to do. As I said in response to the intervention of my hon. Friend the Member for Henley (John Howell), it is also right that we do not over- compensate.
The Bill contains provisions requiring the Lord Chancellor to review the rate promptly after Royal Assent and then at least once every five years, again providing greater certainty and clarity. Following amendments accepted by the Government in the other place, the first review will continue the current arrangements under which the Lord Chancellor consults the Government Actuary and Her Majesty’s Treasury before setting the rate. This will enable the benefits of the new system to be realised as soon as possible. All further reviews by the Lord Chancellor must be undertaken in consultation with an independent expert panel, chaired by the Government Actuary.
I stress that the Bill will not change the important role played by periodical payment orders, which account for a significant proportion of the compensation paid for future loss in cases involving the most serious and life-changing injuries. PPOs protect claimants against the risk inherent in relying on the investment of lump sums to produce a stream of income to meet their needs as they arise. PPOs are and will remain available in the vast majority of the highest-value NHS clinical negligence claims against hospitals, including those involving brain damage during childbirth, and in the large majority of long-term serious injury cases where the defendant is insured by a UK-regulated insurer.
The Lord Chancellor is being very helpful. I welcome what he says about periodical payment orders, because they are a significant transfer on to the insurance company away from the person who is awarded, in terms of both investment and the longevity risk. Will he make it clear—as the noble Lord Keen indicated in the other House—that when he sets the discount rate, having taken the advice of the panel as part of the Government action, he does so as Lord Chancellor in his own right, and not on behalf of the Government? That point was raised by a number of noble lords in the other House when it was said that this decision is taken not for Treasury or governmental reasons, but on the basis of that advice, by the Lord Chancellor in his capacity as Lord Chancellor, almost quasi-judicially.
This important Bill touches upon significant issues of civil liability and the way in which we treat of them. The Justice Committee considered both parts of the Bill, and I will refer shortly to our reports in those two regards, but I must first refer the House to my declaration in the Register of Members’ Financial Interests.
First, on whiplash, is there a problem with fraudulent claims? My judgment based on looking at the evidence is yes. I say that not least because I have over the past few weeks received cold calls of the kind that other hon. Members have mentioned asking me to make claims relating to accidents that never happened. Some of the debate in the other House indicated the same. Practitioners know that it happens, but the extent of it is harder to measure. We then have to consider whether the measures in the Bill are proportionate to deal with the mischief, because the limitation that could be put upon the honest claimant must be proportionate and acceptable to deal with the vice of the dishonest claims. The Government must be careful in how they draw forward the evidence base on that.
It is pretty clear that there is a significant and persuasive disparity between the number of accidents and the number of claims. On balance, I am rather in agreement with Lord Hope of Craighead, a former justice of the Supreme Court, who said during the Bill’s proceedings in the other place that the Government had
“said enough to persuade me that it is necessary to do something to try to minimise the abuse that has given rise to such a large and disproportionate number of whiplash claims. The abuse has been going on for some considerable time, and it is time that something was done to address it.”—[Official Report, House of Lords, 24 April 2018; Vol. 790, c. 1490.]
I am happy to go with that. He is a highly experienced judge. I would also pray in aid Lord Judge, the former Lord Chief Justice of England and Wales, who said that
“some claims absolutely reek of fraud”.—[Official Report, House of Lords, 12 June 2018; Vol. 791, c. 1599.]
However, that does not mean that we should assume that everything that is asserted in terms of the benefits will necessarily follow. Like my hon. Friend the Member for South Leicestershire (Alberto Costa), I was sceptical of the evidence of the ABI witnesses, and I found the Medical Protection Society more persuasive. It is therefore important that the Government rigorously monitor such claims and that there is a genuine hold on whether they are actually passed on. That is why there should be some independent monitoring, which the Justice Committee suggested could involve the Financial Conduct Authority as well as the Ministry of Justice, to hold the insurance industry’s feet to the fire.
Secondly, when they are brought in, the tariff levels will be a departure from our norm, although it does happen elsewhere. It is most important that the judiciary are fully consulted on the setting of those tariffs, and I am glad to see the Government recognise that that is the right way to proceed.
Thirdly, in raising the small claims limit, it is most important that we take on board the senior judiciary’s significant evidence on the potential impact in the courts, to which our report refers, and the dangers that will happen if litigants in person—genuine litigants in person—have difficulty navigating the system, which may have the unintended consequence of placing additional burdens on the Courts Service. I recommend the evidence of both the hon. Mrs Justice Simler and his hon. Judge Nigel Bird to our Committee on those matters, on the outworking of the online portals for such claims and on the way in which that matter should be taken forward.
I am glad the Government have agreed to remove vulnerable road users from the Bill, which is an important recommendation of the Select Committee, but they should also consider the position of other claims that are more complex than the normal straightforward whiplash and soft tissue injury claim. In particular, they should consider where we should set the appropriate limit in relation to employment liability and public liability, which almost invariably create more complex issues. It is much harder to expect people, on an equality of arms basis, to deal with issues arising collaterally from the main point in such cases. As the Bill proceeds, we need to look again at how we handle that.
Those are all important issues. It is important that the Civil Procedure Rule Committee is consulted on how those matters should be taken forward. We refer to that in our recommendations, too. None of those is a reason for rejecting the Bill but, frankly, there are areas where the Government need to strengthen the evidence base. Purely relying on the insurance industry is not enough. There is other evidence for strengthening the case on which the Government could rely, and they need to make sure they get the balance right.
The Justice Committee also considered the discount rate, which on balance is a sensible proposal. There was debate among the witnesses who gave evidence to the Committee and among the members of our Committee as to where to pitch it between very risk averse and risk averse. The proposal is realistic, and it is worth observing that the noble Lords who served in the Wells v. Wells case accept that it is appropriate sometimes to revisit the basis of that ruling. We have to reflect real-life practice, so I do not think that is a problem.
I am pleased there will be greater transparency on the way in which the discount rate is set, and all practitioners recognise the value in having a regular reset of the discount rate, rather than having it drift on for a number of years, as it has in the past. If the Lord Chancellor, as I am sure he does, acts independently of Government in a virtually quasi-judicial role and takes proper advice, for which he is accountable to Parliament, it would give us a better system for dealing with the discount rate in future.
I very much agree with the points about periodic payment orders, which should be encouraged more, and there should be much more uptake, as they move risk away from the injured party and towards the insurance company because they are effectively a form of annuity.
We need to do much more to clamp down on cold callers and on the operations of claims management companies, about which my hon. Friend the Member for Croydon South (Chris Philp) made sound points with which I am much agreement. We also need to look at the role of McKenzie friends, particularly paid McKenzie friends, many of whom work for unscrupulous claims management companies and claim to be qualified when they are not. We should probably move to outlaw the use of paid, as opposed to unpaid, McKenzie friends—there is an important difference.
There is much good in the Bill, but there are also things that need to be considered as it goes forward.
(6 years, 7 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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To some extent, we are going over old ground again. The key, I believe, is to focus on the results on the ground. Let us start with the hon. Gentleman’s final question. We should really be judging Serco’s, Sodexo’s and G4S’s performance in prisons by what they are currently doing in prisons. Nearly 25 years of experience now lie behind this. We have a highly experienced Department. There are 14 privately run prisons with very clear key performance indicators. The inspection reports on those prisons are strong—some are among the cleanest and best run in the country, with very good scores from the inspectors on decency, purposeful activity and resettlement.
To clarify on the issue of Carillion, yes, the company was losing approximately £15 million a year on that contract, but the taxpayer was not losing that money. Carillion was bearing the cost. The taxpayer was effectively saving £15 million a year on that contract. At the same time, I agree that we need to take a lesson from what happened, look carefully at the financial viability of these companies and look at their performance in prisons.
I warmly welcome my hon. Friend’s statement, as I did everything that he said about the Government’s approach to prisons at the Justice Committee yesterday. Does he agree that anyone who takes an interest and has regularly visited prisons will be aware that the successes and failures within the prison estate have nothing to do with ownership? He has cited two examples of excellent private sector provision; as a south-east London MP, I am well aware of Thameside myself. Does he agree that what we really need to do across the House is make the case that prison reform is in the interests of society and victims, rather than going down ideological side tracks?
I think that is something we share across the Benches. Both sides of the House share a common desire: to reduce crime and reoffending, and turn around people’s lives. It is a terrible waste that nearly 40% of our prison population have been in care, that nearly 50% have been excluded from school, and that the literacy level of nearly 50% is lower than that of an 11-year-old. The rates of reoffending have been stubbornly high for 40 or 50 years.
We need to work together to crack these problems. Decent, clean, well run and well managed prisons are part of the key. Another part is getting cross-party consensus on the difficult and brave political choices required to begin to reduce the prison population and protect the public through a reduction in reoffending.
(6 years, 7 months ago)
Commons ChamberIn the past 10 years, the number of young people we have been locking up has decreased from more than 3,000 to under 1,000. As a consequence, we have been left with young people who are quite difficult to manage, which is why we are introducing secure schools to improve the recidivism rates to which the hon. Lady refers.
I welcome the work that the Minister has done in this field, but does he agree with the Justice Committee’s report published a year or so back, which found that a number of the drivers involve many agencies outside the traditional criminal justice system, including education and health, and that they extend beyond the current statutory definitions of young people and youth justice? Does he agree that we therefore need a much more holistic strategy for young people, from the moment they enter the criminal justice system up to around the age of 25, at which point all the evidence suggests that maturity tends to have reached its full development?
My hon. Friend asks a telling question, as ever. Yes, I am persuaded on the question of maturity, and this is something that the system currently reflects. We have youth offender institutions for those aged up to 18, and for those aged 18 to 21. Beyond 21, offenders enter the adult estate. Yes, we need to adopt a more holistic approach to the management of young people. That is why, since I have been in post, I have had meetings with Education Ministers, with Health Ministers and with Ministers in the Ministry of Housing, Communities and Local Government. I continue to pursue this actively.
Will the Secretary of State confirm that the single departmental plan means that greater priority will be given to developing robust non-custodial sentences to divert those whom it is not necessary to send to prison in the first place?
(6 years, 8 months ago)
Commons ChamberIt is a pleasure to follow my Justice Committee colleague, the hon. Member for Enfield, Southgate (Bambos Charalambous).
It is important that we are having this debate. I refer Members to my declarations in the Register of Members’ Financial Interests, and to the fact that I have the honour to chair the Justice Committee. During the last Parliament and the one before it, the Committee considered a number of issues affecting remuneration of the Bar and the way in which we operate our criminal justice system, as well as broader issues, and we heard a great deal of evidence. There is no doubt that the debate touches on very serious issues to which there are no easy answers, but it is also a specific debate about a specific statutory instrument. I will therefore do my best, in the time available, to confine myself to its specifics, but I think it right to give a little of the context.
I speak as someone who practised for 25 years at the criminal Bar, who regards it as one of the finest things someone can do, who has friends still in practice at the Bar, and who is conscious of the hours that are worked and the things that are thrown at people at the last minute, that it is a demanding profession and is not well rewarded—and, arguably, is not rewarded as well as it should be in the circumstances. But we should take a step back from that, because some of the things we are talking about have, I regret to say, always been there. The last minute brief was a feature of my very early days in practice and continued all the way through it, and the large quantities of unused material that people were never paid for reading have also always been a feature of the scheme.
I do think, however, that we should perhaps look at future designs of the scheme now, because of the issues we have found around disclosure, which is ever more important and has grown with the use of digital and online material. We need to look again at whether it is reasonable not to fund people for reviewing the disclosure in these cases. I am conscious of that because I prosecuted a case which we rightly abandoned upon its second appeal when disclosure that should have been made was finally—some years too late, I am afraid, for the person serving the sentence—made to us. So we do need to take that seriously, but, again, it is not a part of the debate on this statutory instrument. That system has always been there, and revoking this statutory instrument will not solve the issue of payment for people dealing properly with disclosure, nor will it solve the issues of the late return or the late nights that we have always been used to. Those are broader matters.
It is also worth observing that the pressure on incomes at the criminal Bar, which I accept has been real and not made easy by extraneous factors such as the cost of training, has not occurred only under this Government or the coalition. The hon. Member for Enfield, Southgate referred to there being no increase in fees since 2007, but, going back further, the squeeze at the Bar started under the Blair Government, from 1997 onwards, so the idea that this has been placed upon the Bar by the current Government is not fair and is not based on the evidence.
It is clear that the Bar now has issues with the scheme. I am deeply saddened that colleagues and friends feel unable to accept work under the scheme. Is it perfect? No, I am sure it is not. Would it be better if more money could be found? Yes, I am sure that it would be. Is revoking the instrument going to solve that? No, I do not think it will. We need a much broader and maturely based debate about that.
I particularly take note of the intervention of my right hon. and learned Friend the Member for North East Hertfordshire (Sir Oliver Heald), who was the Minister at the time and whom I have known since my earliest days at the Bar. I know he is an honest and trustworthy man and when he says that there was a real and genuine attempt to engage the professions in this, I know he is telling the truth. It is also worth bearing in mind that the best evidence is sometimes what is said at the time, and we have a number of quotations from that time that show very clearly that all the representative bodies at the Bar gave a broadly favourable welcome, on the basis that it was not perfect—they did not pretend it was—but it was an improvement on what was there.
The chairs and membership of the Bar Council, the Criminal Bar Association and other representative bodies change annually. They cannot bind their successors and attitudes change, and I am not going to speculate on that. However, it is unfair to say that this was brought in by the Government against a backdrop of universal hostility, because that is not the case; broadly, a fair wind was given to it at the time. Issues have perhaps blown up subsequently, however, and many of us who keep in touch and follow this matter closely might suggest that the real problems are not purely around this statutory instrument, but that broader issues need to be addressed.
The most important things we need to do now do not include talking about the revocation of a scheme that could be improved. Instead, we must make the case for more funding for the criminal Bar. My right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) talks powerfully about his own experience, and friends and children of mine suffer exactly the same difficulty. It is a lot harder to start at the junior criminal Bar now than it was in my day, and that is not a healthy situation. We need a stream of bright, talented and dedicated young people coming through, and this issue deserves a longer and broader debate, in terms of both time and context, than the narrow one we are having now.
Does my hon. Friend agree that the justice system stands or falls together, and that far from being broken, it is one of the finest justice systems in the world? It is worth £25 billion a year, and we need to ensure that all levels of the Bar, and our solicitor advocates, are supported in the work that they do.
My hon. Friend is absolutely right. There are pressures and difficulties, and some areas of the system creak, but talking it down does no justice to anyone. At the end of the day, it is an immensely better system than anything else we have on offer. If we want to look at really badly funded systems, we can look across the Atlantic and to other places, which would horrify all of us. We are not in that situation, and I do not want to get into that situation, but we will only ever go forward if we can make a measured case for why, for example, it is cost-effective to have representation because litigants in person actually burn up more time and cost than if they were properly represented, and the trials take longer. Let us make the business case around that. That will not be done, however, by revoking this instrument or by people not accepting instructions—however great the temptation—and people going unrepresented. I hope that the Bar and the solicitors will feel able to get back round the table with the Ministry of Justice.
I was concerned to hear the powerful evidence given to the Justice Committee recently by the Criminal Law Solicitors Association. It was suggested that a duty solicitor was probably less well remunerated than a teacher with comparable experience. In a competitive world, that does not seem entirely fair. They are both demanding jobs, and we need to find a constructive way forward rather than walking away from these matters.
I have had contact with five junior criminal law barristers, and not one of them earns more than £21,000 a year. That means that after they have paid tax and expenses, they have to live on about 10 grand a year, in London.
My hon. Friend makes an important point; it was in fact the last point I was going to make. If we are to win this debate on fairer funding, we need to get back to a more honest awareness of the realities of remuneration. The press have something to answer for in that regard. It is all too easy to talk about fat-cat barristers and the occasional £1 million-plus fee, which usually relates to a case that lasted about 18 months and was of a highly complex nature. Those sorts of cases are not around any more, for a raft of reasons, and those reports wholly misrepresent the position of the vast majority of barristers, who are working on really modest take-home incomes. Above all, we forget the level of deductions that have to be taken out. My hon. Friend’s point is an entirely fair one. I want to see more money in the system, but that will only come from having a strong and well-managed economy. I want to see more money in the system, but I do not think that this is the right way to go about it.
The Chairman of the Select Committee is making a very good case, but he does not seem to be persuaded by his own advocacy. If this scheme corrects some of the anomalies of the previous scheme, it does so only by reducing the brief fees overall to below a level that was already extremely low. The purpose of annulling the statutory instrument is to make the Government go back and renegotiate on that basis. Does the hon. Gentleman not accept the logic of that?
I do not accept that logic, persuasive though it might be, because annulling the SI would simply put us back on to the old scheme. I would prefer to bank what we have—imperfect though it is—and move on, pressing the Government to move more swiftly than Ministers currently intend to do on the review of the scheme, and starting to talk urgently, at the earliest possible date, with the Bar Council and the Law Society about what could be changed. I want improvements as much as Opposition Members do, but I happen to think that taking an unduly partisan approach does not serve the overall purpose of the matter.
An independent Bar, and an independent and robust solicitors profession, are a critical part of the rule of law. That is what it comes down to, and I do not accept that this is necessarily a welfare state issue, although I understand the point that the hon. Member for Leeds East (Richard Burgon) made. Ultimately, this is about ensuring the rule of law. That is the most important thing, and the system does have to be properly funded. I say with some regret to Opposition Members that, although I have sympathy with many of the points made by the Bar and the solicitors in their evidence to us, annulling this SI is not the right route to go down. I would prefer a more consensual, evidence-based approach, and a calmer one. I hope that once this debate has passed, we will all be able to get down to that.
When it comes to the opposition to the changes to the graduated fee scheme, the Government are entitled to feel a little perplexed because the changes were discussed with the leadership of the Bar. Francis Fitzgibbon, QC, then chair of the CBA, said that
“the CBA believes that the new scheme is a great improvement on what has gone before, and we should at least give it a cautious welcome as a step in the right direction.”
Secondly, the aim of the changes, to rebalance public funding so it rewards the junior Bar more fairly, is unassailable. On that point, I will support the Government tonight.
It would be a great mistake to misread the message coming from the Bar, because my clear sense is that its protest is not really about the intricacies of these specific provisions. Instead, it reflects years of pent-up anguish and frustration about the state of the criminal defence profession and, indeed, a profound sense of foreboding for its future.
The Bar is in a fragile state and needs decisive support, but it does not lie in the mouth of the Labour Opposition to make criticisms about on that, because I know full well from having been a practitioner at the time that, at a time of rising budgets across the piece in health and education during the late 1990s and in the first decade of the 21st century, Labour failed time after time to put more money into the Bar. In 2003, Tony Blair spoke of the “gravy train” of legal aid. In 2006, Lord Falconer referred to the legal aid bill as being “unsustainable”, and there were further plans to cut it in 2010. One has to consider those remarks with great care.
I wish to make some brief observations in the time available; I wanted to say a lot more but I shall confine myself to this. When considering the amount we spend on justice and legal aid, we should put it in context. Treasury Red Book figures show that total public sector spending for 2018-19 is expected to be £809 billion. The total Ministry of Justice budget is less than £7 billion. To put that in context, more is spent on welfare and pensions in two weeks than is spent on justice, and the amount spent on international aid—about £14 billion—is approximately double the entire justice budget. To put it another way, we spend more on the aid effort in Syria alone than we do on the entire legal aid budget in our country.
There are concerns about where this all heads. There will be difficulties with recruitment and retention, and we cannot have a situation where this is a just a job for posh kids with a private income. There is also a risk of injustice. If people are not available to do the work we require them to do, it will not just be a case of people being convicted when they should not be; there is a danger of people not being convicted if juries take matters into their own hands and decide that they want to deliver their own brand of justice.
I am not suggesting this is easy at all, but I want to make three simple points. First, if the criminal Bar falls over, the cost to the state will increase dramatically. The overheads involved in employing hundreds of barristers in a fully fledged public defender service will be extortionate and unaffordable. Secondly, the culture will change, and people will be far less likely to work after-hours and at the weekend. Thirdly, the sums of money required to secure the criminal Bar are modest. Barristers are not seeking wealth; they are seeking viability.
My hon. Friend is absolutely right on that last point about the motivation of barristers. Does he agree that one of the important qualities that the independent Bar brings, as indeed does an objective solicitor, is precisely that word—objectivity? The objectivity brought by a barrister has been seen in many cases, for example, those where disclosure failures have occurred, and in the willingness to root out what is absolutely necessary, fearlessly, on behalf of a client. That cannot be replicated.
That objectivity is vital. In the United States, they have dyed-in-the-wool prosecutors. I remember the case of Michael Jackson, with Tom “Mad Dog” Sneddon; all these people do is prosecute. One great value we have in this country is that people prosecute and defend. That level of objectivity is fantastic. It also means that people are incentivised to go the extra mile, because you are only as good as your last brief.
The criminal Bar is precious. This is not about sentiment. This is a flinty-eyed assessment of a real and pressing need. Once this matter is over tonight—I will vote with the Government, because the Opposition’s proposal is, with respect, misconceived—I urge the Government to look again at how the criminal Bar can be supported, as there is a pressing need.