Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Stephen Lloyd and Yvonne Fovargue

Wednesday 29th June 2011 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

As I am the chair of the all-party group on legal aid, it will come as no surprise that I wish to speak today mostly about the proposals to reform legal aid. However, I first wish to take issue with the attempt by the Government to legitimise the cuts in legal aid by insisting that England and Wales have by far the most expensive legal aid system in the world. The one piece of research that has been done on this is on the Ministry of Justice website and it says that it does not compare like with like. It is an interesting piece of research and I commend it to hon. Members.

Legal aid is the smallest proportion of the justice budget and it is the hardest hit. More than 5,000 individuals and groups responded to the consultation and 90% said, “Do not take social welfare law out of scope.” I stress that these were not fat cat lawyers, worried about their income, but individuals and organisations who see the effect that the proposals will have on their most needy and vulnerable clients—those who are least able to defend themselves.

[Stephen Lloyd (Eastbourne) (LD)]

Does the hon. Lady agree that the reforms will be a tragedy for the citizens advice bureaux, which have a tremendous reputation for serving those very disadvantaged individuals who will lose out as a result of these cuts in legal aid?

Consumer Credit and Debt Management

Debate between Stephen Lloyd and Yvonne Fovargue

Thursday 3rd February 2011 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

Could the hon. Gentleman explain to a constituent of mine who has six loans from payday loan companies, each one borrowed to pay off the other, how that could take place if the companies are targeting people to ensure that they have the ability to pay?

[Stephen Lloyd]

The hon. Lady raises a good point, and an important one. There will be some anomalies, but when I did the research I found that the majority of people who use payday loans pay them back regularly, otherwise the business model would collapse. I hope to be able to explain that as I go through my remarks.

The companies offer credit to those who are financially excluded by larger and seemingly more reputable financial institutions, such as those banks that are now owned by the taxpayer. Although some of those loan companies have been associated with inescapable cycles of debt, as my hon. Friend the Member for Chippenham (Duncan Hames) mentioned earlier, and with poverty, as noted by pressure groups such the excellent End Legal Loan Sharking, I now recognise that the whole issue is simply not as black and white as it has been painted.

Legal Aid Reform

Debate between Stephen Lloyd and Yvonne Fovargue

Thursday 3rd February 2011 Commons Chamber

[Yvonne Fovargue]

I thank my right hon. Friend for that comment. I will come to that later when I suggest some ways of saving money in the system.

Whole swathes of advice areas are removed from the scope of legal aid, particularly the social welfare law category. Welfare benefit is removed completely from legal aid. According to the Ministry of Justice’s own equality impact assessment, 63% of clients who received legal aid in this category had a disability, 54% were female and 27% were from a black and minority ethnic background. However, this is justified by stating that the

“accessible, inquisitorial and user friendly nature of the tribunal means appellants can generally present their case without any assistance”.

It also states:

“Advice and help are available from a number of sources including Job Centre Plus and the Benefits Enquiry Line”.

So people who have had their claim refused by Jobcentre Plus or the Benefits Agency are to go to them for support in challenging the decision and they will help them. I have to say that that is not the experience I had when I worked for an advice agency.

[Stephen Lloyd (Eastbourne) (LD)]

On the basis of what the hon. Lady has said, which I support entirely, would she be interested to know that Brighton Housing Trust’s Eastbourne advice centre deals with at least 800 specialist housing cases per year and anticipates that this will fall to about 100? Are we really expecting Jobcentre Plus to take up the slack?

[Yvonne Fovargue]

Yes, I totally agree. In fact, my local citizens advice bureau has phoned the Benefits Agency 100 times and has had no response apart from saying that everyone is busy.

These issues are not considered of sufficiently high importance, but when a person is ill or has a disability one of their major concerns is having an adequate income to enable a decent quality of life. The early advice available under this funding can save money. Some 80% of social welfare legal aid cases have positive outcomes for clients. In the agency where I worked, 70% of our reassessment appeals were successful, and that negated the need for a costly tribunal.

I would like to debunk the myth that these cases are not complex. My own CAB in Wigan dealt with a case for three years where the Department for Work and Pensions asserted that a couple were living together as man and wife, despite evidence from a neighbouring local authority that Mr M was resident there and receiving benefits, and that he merely visited to look after his disabled daughter, assisting with her care on occasion. Mrs M was summonsed for benefit fraud, convicted, and ordered to repay £27,000. The CAB continued with the case, appealed three times, and went to the Secretary of State. At the final appeal, Mrs M was found to owe £236—a reduction of more than £26,500. Was that a complex case? Would it be suitable for a telephone helpline? I do not think so. That client needed the face-to-face help given by a skilled CAB adviser and was funded by legal aid.