Compensation for Miscarriages of Justice (Alteration of Overall Compensation Limits) Order 2025

(Limited Text - Ministerial Extracts only)

Wednesday 17th September 2025 Grand Committee

Moved by

[Baroness Levitt]

That the Grand Committee do consider the Compensation for Miscarriages of Justice (Alteration of Overall Compensation Limits) Order 2025

Relevant documents: 34th Report from the Secondary Legislation Scrutiny Committee

[The Parliamentary Under-Secretary of State, Ministry of Justice (Baroness Levitt) (Lab)]

My Lords, miscarriages of justice have a devastating impact on those who suffer them. It is no exaggeration to say that such people are in fact victims of the state, so it is right that the state should support those people in rebuilding their lives.

Although miscarriages of justices are, thankfully, rare, they do occur. When they do, it is vital that the criminal justice system learns lessons in order to minimise the risk of them happening again and that we support those people whose lives have been affected. Justice for the wrongly convicted is vital to the Government’s ambition to restore confidence in the criminal justice system as part of their Plan for Change: Milestones for Mission-led Government.

With the introduction of this instrument, we are taking action to ensure that victims of miscarriages of justice will continue to be appropriately compensated, while keeping in mind the wider financial context. There are two compensation schemes: one relates to convictions in the civilian justice system, while the other relates to convictions by a court martial. Both have caps on the maximum compensation that can be paid for a miscarriage of justice. They have not been changed since their introduction in the Criminal Justice and Immigration Act 2008.

The purpose of this instrument is to increase the maximum amount under both schemes by 30%. This means that where an individual has spent at least 10 years in prison, the maximum amount that they can receive will increase from £1 million to £1.3 million. In all other cases, the maximum amount will increase from £500,000 to £650,000. The Government consider this a substantial increase. Of course, these compensation schemes are just one route by which an individual can receive compensation for a wrongful conviction; for example, applicants can also seek further compensation by bringing civil claims against public bodies if they have been at fault in such a way that it has caused the miscarriage of justice.

I am now going to deal with each scheme in a little more detail. For those who have suffered a qualifying miscarriage of justice in the civilian criminal justice system, the payment of compensation is governed by Section 133 of the Criminal Justice Act 1988. Applications for compensation under this scheme are determined and the compensation will be paid by the responsible devolved Government.

In practice, this means that the Secretary of State for Justice is responsible for cases in England and Wales, Scottish Ministers are responsible for cases in Scotland and the Department of Justice in Northern Ireland is responsible for cases in Northern Ireland. This reflects the position that miscarriages of justice compensation are a transferred matter. There is a small number of cases in Northern Ireland involving sensitive national security information for which the Secretary of State for Northern Ireland has responsibility.

For those who have suffered a qualifying miscarriage of justice following conviction by a court martial, Section 276 of the Armed Forces Act 2006 provides that applications are determined by, and that the compensation will be paid by, the Secretary of State for Defence. To be clear, compensation payable under this scheme is also subject to the caps.

The proposed instrument will increase the caps that apply to compensation payable by the Secretary of State—that is, eligible England and Wales cases, eligible Northern Ireland national security cases and eligible cases under the Armed Forces Act scheme. It will have no effect on the caps that apply to compensation payable by the Northern Ireland Department of Justice as it has a separate power to amend its caps.

The Government are aware that there are some aspects of the entire compensation scheme that remain controversial. However, the Law Commission is consulting on a wide range of changes to the laws relating to criminal appeals, including compensation for miscarriages of justice. We look forward to receiving its final report and remain committed to ensuring that any changes we make will promote fairness and justice for all involved in criminal justice proceedings.

I thank the Secondary Legislation Scrutiny Committee for its consideration of this instrument and its report. We are laying the instrument now as part of our mission to improve the Government’s response to miscarriages of justice. We believe that it is crucial to ensure that victims of miscarriages of justice continue to be appropriately compensated, while being mindful of the Government’s wider financial context. I beg to move.

[Lord Thomas of Cwmgiedd (CB)]

My Lords, it is an enormous privilege to welcome the Minister to the Dispatch Box on her first appearance. I welcome the fact that such an experienced lawyer now holds this position.

I turn now to the substance of the debate; the Minister has explained everything in such lucid detail that I can go straight to the two points that I want to raise, without going into the background. The limit was fixed in 2008 and, as the Secondary Legislation Scrutiny Committee, on which I sit, observed, the limit is being raised by only 30% whereas, unfortunately, inflation has been very much higher. We have the privilege of having the Financial Secretary to the Treasury here in the Room, and he will no doubt be very pleased to see that the Ministry of Justice is taking such good care of the scarce resources of the country.

When the previous Labour Administration were in power in 2008, they thought that the limits set out then were fair and reasonable and reflected the public position at the time. Is there a reason why we cannot have the same position today and therefore raise the amounts? As the Secondary Legislation Scrutiny Committee was told, there has never been a payment of the maximum amount, and only very few payments of the lesser amount. Is there therefore a real difficulty in being parsimonious—which is no doubt appreciated by His Majesty’s Treasury—in relation to these amounts? Could this be looked at again?

That takes me to my second question. The Ministry of Justice is in the unfortunate position of having a number of instruments and other pieces of legislation where limits are set, and it is very important that these are kept under regular review. There have been occasions when the ministry has failed to do so. Does the ministry now have a proper schedule for reviewing this and making certain that we do not have a very long period of time, such as that which has elapsed since 2008, before this kind of limit is reviewed? It may be that the Minister will want to take some time to investigate this, but I hope that there is a system in place for such limits to be looked at.

Those are my two observations. I again express what a great pleasure it is to see the Minister in her place and dealing with such an important subject.

--- Later in debate ---

Finally, I take the opportunity that today offers to raise the issue of the test that applicants must pass to qualify for compensation at all. As the Minister said, they are, after all, victims of the state. It is not enough that their conviction has been quashed, particularly when they have spent many years in prison, with the loss of their liberty, their family and their reputation—everything. Yet, having had their convictions quashed on the grounds of a miscarriage at the trial itself, they are required to prove beyond reasonable doubt that they were innocent. But if the original trial had been fair, it goes without saying that they would have been acquitted and not imprisoned, because the Crown would have failed to prove beyond reasonable doubt that they were guilty. So, at present, someone who should not have been in prison at all has then to prove that they are innocent by applying a test and standard that is the opposite to that which would have applied if the trial had not been a miscarriage. I invite the Minister to say something about what the Government will do to remedy this lamentable state of affairs.

[Baroness Levitt (Lab)]

My Lords, I am grateful for the contributions to this debate. I shall start with the noble and learned Lord, Lord Thomas of Cwmgiedd. The last time that I was answering questions from the noble and learned Lord, I was in the Court of Appeal and he was the Lord Chief Justice, and I have to say that I rather quake at the sound of his voice. I am very grateful to him and I appreciate the importance of the points that he makes.

As to whether there is a proper schedule relating to reviews of this, I am afraid I am going to repeat what I said in my opening remarks about the fact that the Law Commission is looking at this and it would be unwise of the Government to commit themselves to anything, or indeed to start considering it, until they have seen what kind of a package the Law Commission suggests. If noble Lords will forgive me, that is going to be my answer at this stage.

On why a decision was not made to increase the amount by the rate of inflation, I shall deal with that in answer to the noble Lord, Lord Sandhurst, in a moment. I am afraid I am going to disappoint him in relation to his first point about the test, as it were, the gateway for eligibility, and say to him again that the Law Commission is looking at it, and I am not going to pre-empt what it is going to say. We are very much looking forward to its report. It has asked for views on compensation for those who have had their convictions quashed. It will be interesting to see what it says. Its initial findings are due in 2026.

On the point about inflation made by the noble Lord, Lord Sandhurst, and the noble and learned Lord, Lord Thomas of Cwmgiedd, the noble Lord, Lord Sandhurst, and I have known each other for a very long time and therefore I am going to make this point in as gentle a way as I can. He made the point that for 17 years, there has been no increase in payments for miscarriages of justice. I think he knows what I am going to say. For 14 of those years, the party opposite was in power, and it did not raise them by any per cent, far less the rate of inflation. We have done so, and we say that it is a substantial increase.

It says in my brief to make the point that we inherited a broken criminal justice system, but because of my great respect for the noble Lord, I am going to put it this way: it is a system that is under great stress. I do not think that anybody would disagree with that. The fact is that this Government have to consider our obligation to limit the financial exposure that we take on, certainly before the Law Commission reports. This instrument is an important part of Government’s work to ensure that people are appropriately compensated following a miscarriage of justice, and I commend it to the Committee.

Motion agreed.