Riot Compensation Bill

John Bercow Excerpts

Friday 5th February 2016 Commons Chamber

[Mike Wood (Dudley South) (Con)]

I beg to move amendment 1, page 3, line 16, at end insert—

‘( ) Regulations under subsection (3)(b) or (3)(d) must provide that—

(a) the time period within which a claim may be made ends no earlier than 42 days from the date of the riot;

(b) the time period within which details and evidence must be submitted ends no earlier than 90 days from the date the claimant first made the claim.”

[Mr Speaker]

With this it will be convenient to discuss the following:

Amendment 2, in clause 8, page 5, line 23, at end insert

“, except in the circumstances described in subsection (2A).

‘(2A) Where a claimant’s home is rendered uninhabitable, the amount of compensation may reflect costs that the claimant incurs as a result of needing alternative accommodation.”

Amendment 3, page 5, line 26, at end insert—

‘( ) considerations that decision-makers must take into account in deciding the amount of compensation payable as a result of a claimant needing alternative accommodation (and the regulations may include provision limiting the amount of time for which the costs of alternative accommodation may be claimed),”

Amendment 8, page 5, line 29, at end insert—

‘(3A) Money received by the claimant from emergency or recovery funds, whether funded publicly or privately, in the aftermath of a riot must not be taken into account by the decision maker when deciding the amount of compensation to be paid.

This amendment would ensure that money received by the claimant for the purposes of emergency relief or recovery in the immediate aftermath of a riot is not seen in the same category as compensation under the purposes of this Bill and therefore reduce the amount a claimant might receive.

[Mike Wood]

May I convey my sympathies and add to the tributes that you paid to Harry Harpham, Mr Speaker? I know that the sympathies of all right hon. and hon. Members will be with his family and friends at this difficult time. Even from the short time in which we saw Harry in this House, it is clear what a loss he will be.

Amendment 1 is a consequence of amendments that were tabled by the right hon. Member for Tottenham (Mr Lammy) but not voted on in Committee, and it seeks to clarify and extend the time limit allowed for someone to communicate their intention to make a claim, and the provision of details, evidence and support of such a claim following a riot. Following concerns raised in Committee, the amendment would allow a 42-day period as originally set out in the Bill, but it clarifies that that is from the date of the riot. As Ministers have made clear, that time limit should come with some flexibility, and I hope that in interpreting the date of the riot, authorities will have the good sense to show flexibility in making that date start at the end of the riot where appropriate, rather than necessarily the date on which the damage was suffered.

The main change in amendment 1 relates to the second period: the 90 days from the date the claimant first made the claim. That would mean, potentially, a minimum of 132 days from the date of loss in which we expect businesses or residents to submit details of their claim and to provide the evidence to support it. I hope that that will provide some reassurance to Members who raised concerns in earlier stages.

Amendments 2 and 3 were tabled following comments made on Second Reading and in Committee, and representations made directly to me outside the Chamber, in particular by the right hon. Member for Tottenham and my hon. Friend the Member for Croydon Central (Gavin Barwell). As I made clear on Second Reading, while there are very good reasons for excluding consequential losses from the claims that can be made against the police in the event of a riot, concerns were raised about what would happen if people’s homes were left uninhabitable following a riot. Social tenants would usually be rehoused, and for owner-occupiers with building and contents insurance, the insurance would normally pay for the additional costs of rehousing. However, that would still leave a significant number of people, particularly in the private rented sector, who could find themselves, through absolutely no fault of their own, having to find new housing. They could struggle to find new housing at the same cost as their current mortgage or rent, and that is what amendments 2 and 3 intend to tackle. They seek to cover the costs of alternative accommodation, whether in a bed and breakfast, a hotel or other short-term rent. Amendment 3 clarifies that and allows the regulation that could include in the provision time limits for such additional costs.

During the passage of the Bill, in particular on Second Reading, Members on all sides brought to the attention of the House heart-wrenching stories of hardship as a result of the 2011 riots. Those stories explain the thought process behind amendments 2 and 3. I still do not believe that consequential losses should be covered, but it would not be just if people were made to suffer unnecessarily in their hour of need. I am certainly not prepared to see people effectively rendered homeless while they wait for their homes to be inhabitable once again. I must stress, however, that covering a consequential loss in this way must be the exception, not the rule. It is intended only to assist individuals to recover costs incurred while staying in alternative accommodation following a riot. The details of the provisions will be clarified in regulations.

I turn to amendment 4 tabled by the right hon. Member for Tottenham. At every stage of the Bill, he has raised a number of valid concerns. He has been an extremely effective spokesman for his constituents and for businesses in his constituency. Ministers made it clear on Second Reading and in Committee that we would not expect payments made through charitable funds, or other appeals of that kind, to affect the payments made through the compensation scheme. It would certainly not be right for such payments to be deducted from compensation due under the Bill.

--- Later in debate ---

[Andrew Gwynne (Denton and Reddish) (Lab)]

On a point of order, Mr Speaker. I tabled a named day written parliamentary question to the Prime Minister for answer today. That question was whether the Prime Minister himself had seen a copy of the draft childhood obesity strategy document, which we suspect the Government have long-grassed. I received a letter from No. 10 Downing Street today advising me that the Prime Minister had asked for the question to be transferred to the Secretary of State for Health for answer. Surely the Prime Minister knows whether the Prime Minister has seen said document. In my 10 years as a Member of the House, I have never been treated with such contempt. Can you advise me whether it is in order for the Prime Minister to refuse to answer a very simple question?

[Mr Speaker]

I am grateful to the hon. Gentleman for his point of order and his characteristic courtesy in giving me advance notice of his intention to raise it. My initial reaction, off the top of my head, is that it is not disorderly, though it might be considered unhelpful. In my experience, it constitutes a somewhat odd transfer. Transfers are commonplace, but where the question is as specific as his, it is an odd, perhaps unconventional transfer that might have been requested by people acting on behalf of the Prime Minister who are perhaps not as well versed in our procedures as the hon. Gentleman is or as the Chair likes to consider himself to be. I advise him to make the short journey from the Chamber to the Table Office to seek guidance on how he can take the matter forward. Knowing him as I do, I think it improbable in the extreme that he will allow the matter to rest there.

[Mr Steve Reed (Croydon North) (Lab)]

Hon. Members will be aware that Croydon was hit very hard in the 2011 riots. Many members of the public, seeing the damage caused to local businesses, homes and property, wanted to help those seeking to recover and deal with the losses incurred, and they generously gave money to a fund set up by the mayor of Croydon for precisely that purpose.

I rise to speak in favour of amendment 8, which was tabled by my right hon. Friend the Member for Tottenham (Mr Lammy). I am sorry I missed the start of his contribution, but I heard the end, and it was typically magnificent. I would like those who give generously to help their neighbours who have suffered a loss to have the reassurance that the money they contribute will not subsequently be deducted from official compensation payments, but tragically that is exactly what happened in Croydon in 2011. Money was donated to the mayor’s fund and was then distributed to individuals and businesses that had suffered a loss, but those generous payments were then deducted from the official compensation payments that were made. That is clearly wrong and a disincentive to people to give generously, as they did in Croydon to help their friends and neighbours. It is entirely wrong that such generosity should be discouraged by the deduction of those contributions from official payments. I strongly support my right hon. Friend’s amendment, which I hope will have the support of the House.

--- Later in debate ---

[James Brokenshire]

The most important thing is that we define the charitable purpose for which contributions have been made, rather than reflecting on the manner in which those moneys have been given. It is about the fundamental purpose, although my hon. Friend makes an interesting point that people will want to examine as we introduce the regulations. I hope that my comments have helped in our consideration of the amendments.

[Mr Speaker]

Does the hon. Member for Dudley South (Mike Wood) wish to contribute further?

[Mike Wood]

No, Mr Speaker.

Amendment 1 agreed to.

Clause 8

Amount and payment of compensation

[Mr Lammy]

I beg to move amendment 4, page 5, line 19, leave out from “compensation” to “that”.

This amendment would remove the £1 million compensation cap.

[Mr Speaker]

With this it will be convenient to discuss the following:

Amendment 6, page 5, line 19, leave out from “maximum” to “per”.

Amendments 6 and 7 together represent an alternative to amendment 4 and to amendment 5. They would make determining the compensation cap subject to parliamentary approval and also provide for its review and revision on the same basis without recourse to further primary legislation.

Amendment 5, page 5, line 19, leave out “1” and insert “10”.

This amendment is an alternative to amendment 4 and would increase the £1 million compensation cap to £10 million.

Amendment 7, page 5, line 20, at end insert—

‘(1A) The compensation cap (the “cap”) under subsection (1) must be determined, and revised every three years, by regulations made by the Secretary of State, with the following elements:

(a) the cap may apply differently, or be set at a different level, in different areas; and

(b) the Secretary of State must publish:

(i) the methodology used; and

(ii) the first draft determination of the cap for public consultation within a month of the day after the day on which this Act is passed.

(1B) The Secretary of State must lay before the House of Commons a draft of the regulations making the final determination or revision in a statutory instrument alongside a statement of whether and how the responses to the public consultation were taken into account.

(1C) A statutory instrument under subsection (1B) must be laid in draft before the House of Commons and may not be made until approved by resolution of that House.

(1D) Notwithstanding section 12, section 8 shall come into force on the day after the day on which this Act is passed for the purposes of subsection (1A).

(1E) Until a determination has been approved by the House of Commons, no cap shall apply.

Amendments 6 and 7 together represent an alternative to amendment 4 and to amendment 5. They would make determining the compensation cap subject to parliamentary approval and also provide for its review and revision on the same basis without recourse to further primary legislation.

Amendment 9, page 6, leave out lines 16 and 17.

This amendment is consequential on amendment 4 and on amendment 7.

[Mr Lammy]

The amendments address the issue of the £1 million compensation cap. It is important for the House and for individuals beyond it who, unfortunately, may find themselves caught up in a riot that we interrogate how the Government reached that figure. In Committee, I raised the issue of the cost of running a business and the fact that it varies across the country. The price of running a newsagent, off-licence or small gift shop in Yeovil is different from the cost in Northumbria and different again from the cost in Tottenham, yet this £1 million figure exists for all those businesses.

I was grateful that the Minister for Policing, Crime and Criminal Justice, who led for the Government in Committee, wrote to my right hon. Friend the Member for Knowsley (Mr Howarth), who also served on the Committee, in response to some of the points I had made and that he shared that with members of the Committee. The letter stated:

“In finding a solution it was important for the Government to come up with a balanced approach that protected the public purse from unlimited liability whilst also ensuring that significant numbers of businesses would not be inhibited from making claims. A further key issue was to minimise the bureaucracy around the administration process.

A number of respondents to the consultation suggested an alternative, and more simple administrative approach, of a cap on the amount of money…We examined data provided by forces and found that 99% of claims from businesses and insurance companies made after the 2011 riots were under £1m.”

It is important to stress that we do not know when there will be another riot. We hope there will not be one, but we are here this morning because we suspect there will be, given the history of our country and the fact that from time to time these things happen. It is important to emphasise that the fantastic nature of our policing model, with policing by consent and our police not routinely carrying guns, means that the public stand alongside them. When that consent is withdrawn and a riot happens, it is not the fault of the business or the homeowner, who have paid their taxes and expect to be protected. Therefore, setting a £1 million cap is an important moment, particularly given the nature of our economy at the moment and the cost of a property in a city such as London. The average price here is now running at half a million, so the average shop front on a high street in Tottenham is about the same and the £1 million cap is an important figure to understand fully.