Oral Answers to Questions

Debate between Steve Reed and Damian Green

Monday 28th April 2014 Commons Chamber

[Damian Green]

The hon. Lady will know that we are looking at the whole issue of out-of-court disposals. We want to reach a position where the use, as she says, of community resolutions is restricted to crimes where this is appropriate, but not for those where such a resolution would damage the public’s confidence in the criminal justice system. I hope she acknowledges that the amount of violent crime in this country is at such a low level now.

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

Before a prosecution is made, the police first have to record a crime. In Lincolnshire, more than a quarter of all reported rapes are dismissed as “no crime”, compared with a national average of 9%, and there are similarly high rates in other police areas. A police whistleblower claims that officers in some forces pressurise vulnerable victims to drop their allegations to make the crime statistics look better. What action has the Minister taken to explain and reduce the extreme variation in the number of rapes categorised as “no crime” by different police forces?

[Damian Green]

I agree with the hon. Gentleman’s underlying concern, but I hope he will be reassured that the “no crime” rate for rape has fallen year on year, from 12.6% in 2010 to 9.6% in 2013. At the same time, the Crown Prosecution Service is now achieving its highest ever rape conviction rate, with 63% of prosecutions resulting in successful outcomes and the average custodial length going up 21 months over the past 10 years. Everyone shares the concerns, but the hon. Gentleman should be reassured that the position is actually improving.

2011 Public Disorder (Compensation)

Debate between Steve Reed and Damian Green

Wednesday 5th June 2013 Commons Chamber

[Damian Green]

I do not have the figures to hand, but if the Department has them, I will write to the right hon. Gentleman and place a copy in the Library. I assume that he is referring to insurance claims rather than to Riot (Damages) Act claims. When it comes to insurance, there are three distinct classes. First, there are the people who are fully insured and who may over-claim, As we know, there are people who always over-claim. Secondly, there are the people who have insurance but subsequently find that they are underinsured. I consider many of those cases to be among the most complex and difficult. Thirdly, there are those with no insurance. It is the second and third groups who are eligible for compensation under the Riot (Damages) Act.

It may well be that the claims of some of those people will not be met in full. No doubt the hon. Member for Croydon North will be aware that some people in Croydon have withdrawn parts of their claims. It would obviously be inappropriate for me to comment on individual cases, so I shall not do so, but I am happy to discuss the matter with the hon. Gentleman privately.

[Mr Reed]

I agree with the Minister that it is wrong to refer to individual cases, but let me draw his attention to the overall statistics. The total amount claimed was £250.1 million, and nearly two years later only £35.8 million has been paid. Is the Minister not concerned about the fact that that is a far lower proportion than would normally apply to claims for damages, even if allowance is made for normal loss adjustment?

[Damian Green]

It would concern me more if part, or all, of the claims of a large number of people had still not been met. The figures that I have given, however, show that the number of such claims is very small. Ideally, of course, we would have resolved all the claims by now, but I think that that is the key statistic. One of our main aims is to secure a complete resolution of the remaining few cases, but when there is a large batch of claims, some of those claims will always be more complex than others, and will take longer to resolve.

As I have said, many of the outstanding cases relate to claimants who were underinsured. It took time for the insurance element of those claims to be settled before the underinsurance element was submitted to PCCs or to MOPAC for consideration under the Riot (Damages) Act¸ which is why 5% of the insurance claims from small and medium-sized businesses remain outstanding after the 2011 riots.

Let me now focus specifically on what I take to be the hon. Gentleman’s central point, which is that some people have received smaller amounts of compensation. It is important to bear in mind the fact that such compensation is ultimately paid for by the taxpayer, and that claims therefore need to be properly substantiated. All uninsured claims were reviewed by loss adjusters using standards applied in the insurance industry. All victims were dealt with sympathetically. Where documents such as receipts for goods purchased were destroyed, secondary evidence was requested, such as bank statements, to substantiate lifestyle.

In addition to losses that cannot be substantiated, there are other reasons for individuals and businesses receiving less compensation than they sought. A number of claimants sought compensation for things not covered by the Act, such as personal injury, vehicle damage and business interruption. Excluding the costs associated with the reinstatement of buildings, adjustments were made downwards because claims made under the Act were assessed on an indemnity, rather than a new-for-old, basis. I take on board the point that that causes much of the disappointment, but that is the way the law is framed. In some ways this issue directly links to the purpose of the Act.

[Mr Reed]

It is more than a matter of disappointment for people who are unable to re-establish their livelihood and are therefore facing the loss of the family home because they can no longer meet the mortgage payments. The Government stood up after the riots and said nobody would lose their business or their home, so they did not intend for this to happen. Surely the Minister should act.

[Damian Green]

I was about to come on to that point. The Act is a safety net, which exists to provide some level of compensation. It should not be seen as a direct replacement for an insurance policy. The aim now is to encourage as many people as possible to obtain insurance, and we will need to look at any difficulties in that regard.

Turning specifically to Croydon, I am aware of the claims relating to the terrace on London road. The situation there is complex because of the number of people who were underinsured and because of the sums of the losses involved. Before rebuilding work can commence, it is important that most, or all, of these claims are resolved.

In recent months, the Home Office, Croydon council, the Metropolitan police, MOPAC, the insurers and the loss adjusters have been working together to finalise settlements on these claims. At the local level, Croydon council has been working with the landowners on London road to try to bring forward a suitable and appropriate development. They have already engaged with an architect to assist in this process. Meetings have also taken place between officials and MOPAC and the insurers, and the offer of a further meeting chaired by the deputy mayor for policing and crime has been proposed if it is thought that that will help speed things up. MOPAC and Croydon council, as well as the Home Office, are therefore doing their best to speed things up.