Sentencing Bill

Lord Lemos Excerpts

Wednesday 26th November 2025 Lords Chamber

[Baroness Hamwee (LD)]

I speak to Amendment 36, and will also speak to Amendment 39.

Amendment 79 in the name of my noble friend Lord Marks of Henley-on-Thames is in this group. As rapid consultation during the course of this afternoon’s proceedings has revealed that none of us is entirely clear what we wanted to say, I hope that it is not too late to de-group it. There will be the opportunity to come to it on one of the days next week. I am sorry if that causes a problem to any colleagues. Otherwise, I will just let the Minister reply as if it had been introduced.

Amendment 36 and 39 deal with income reduction orders. They are complex and not very practical, I would suggest. These orders were not, I understand, recommended in the independent sentencing review. They are not easy to achieve; they can impose additional and unpractical burdens on the court system, which as we know is overstretched, and on HMRC and benefits administration. A lot of fines are imposed by the court; they are the most common criminal sanction, but payment is persistently low. In 2023, 49% of fines remained unpaid after 12 months, despite the requirement that they are set at an amount which can be paid within a year. If that rather simpler system cannot reliably recover half of what is imposed within a year, the more complex income reduction order is not likely to be more successful.

The IRO penalises a person for finding employment by making deductions from their earnings each month. This poses the risk of discouraging individuals from engaging in employment or, at any rate, formal employment. They may move into low-visibility work or decide they are better off not working at all. The impact of court fines is disproportionately severe for low-income households. People with court debts are very likely to live in social housing and very likely to be unemployed, strong indicators of economic precarity. The fines system, particularly additional court charges, rigid payment plans and deductions from insufficient benefits, often escalate the total owed beyond what is affordable for people on low means. I do not need to spell out the path that some people may follow.

I have some questions for the Minister. First, what is the projected collection rate for IROs, and how does it compare with the current 50% unpaid at 12 months for court fines? How will the system track fluctuating incomes, PAYE changes, zero hours and self-employment, and resolve disputes without adding to the burden on the court? What employment impact assessment has been conducted—I am going to come back to employment in a moment—given the Minister’s well-known support for hiring people with convictions to cut reoffending? How will IROs avoid pushing low-income households further into poverty?

I said that I would come back to employment. Our Amendment 39 raises the dangers, as we see it, of income reduction orders hindering the good things that we want to see—offenders taking up employment and training and achieving housing. If the net income with which an offender is left is too low for these various activities, the net benefit would be a disbenefit as we see it. I beg to move Amendment 36.

[Lord in Waiting/Government Whip (Lord Lemos) (Lab)]

I did not quite follow what the noble Baroness proposed about degrouping, but I draw attention to what it says in the Companion, which is that

“de-grouping is discouraged once each day’s groupings have been published”.

But I may have misunderstood.

[Baroness Hamwee (LD)]

No, the noble Lord, Lord Lemos, is quite right. I had only realised it shortly before we came to this group. “Discouraged” means no in House of Lords language, I think. So I wonder whether the Minister can regard me as having spoken to what is set out in quite a long amendment, because I am sure he will have words to answer what my noble friend would have said, had he been here.

[Lord Lemos (Lab)]

That sounds sensible.

[Lord Keen of Elie (Con)]

My Lords, Clause 3 is of course a novel sentencing tool, and it is entirely correct that the Committee should probe its design with some care. Many of the amendments before us seek reassurance that the scheme will be fair and proportionate, and indeed that it will be workable in practice. The noble Baroness, Lady Hamwee, with her amendment, draws attention to the basic question of impact. An income reduction order must not be set at a level that undermines an offender’s ability to work, train or maintain stable housing. If these orders are to be effective, they must support rehabilitation, not jeopardise the very stability on which it depends. The noble Baroness’s amendments highlight that there is a risk here that requires very clear scrutiny.

The amendments in my name and that of my noble friend Lord Sandhurst raise a series of questions about the architecture of the scheme. As drafted, the Bill establishes broad powers to reduce an offender’s income, yet it leaves almost all the crucial detail to regulations that we have not yet seen and that may in due course prove insufficiently robust.

Amendments 37 to 44 ask the Government to place in the Bill the essential elements that will govern how these orders operate in the real world. They begin by posing the most basic question of all: what do the Government mean by “monthly income”? Are we assessing gross or net income? How are fluctuating earnings to be treated? What of the self-employed or those on irregular or zero-hours contracts? It is very difficult to see how a fair and consistent system can be construed without clear statutory guidance on these points. If Parliament is to authorise a mechanism allowing the state to deduct a portion of a person’s income month after month, it is surely right that we also understand with precision how that income is to be defined, what thresholds will apply, how caps are to be set and which factors the court must take into account before imposing an order.

Amendment 44 goes to the heart of our concern that the Bill as currently drafted lacks the necessary clarity about the conditions under which an income reduction order may be imposed. Leaving this almost entirely to secondary legislation again risks undermining both transparency and fairness—surely qualities that are fundamental to the integrity of such a system.

These amendments illuminate the substantial gaps in the present drafting and ensure that Parliament does not sign off on a broad new power without understanding how it will work in practice and what safeguards will accompany it. I look to the Minister to provide the clarity that has so far been somewhat lacking. For our part, we do not oppose the principle of creating a more flexible and enforceable means-based penalty. But, before we take such a significant step, we must be satisfied that the framework is sound, that the protections are clear and that the consequences, particularly for those on the margins, have been fully thought through. I hope the Minister will address these concerns.