Civil Proceedings, Family Proceedings and Upper Tribunal Fees (Amendment) Order 2016

Lord Beecham Excerpts

Tuesday 15th March 2016 Lords Chamber

Moved by

[Lord Beecham]

At the end to insert “but this House regrets that the draft Order further increases enhanced fees in certain proceedings that will be detrimental to victims of domestic violence and disproportionately discriminate against women; is concerned that the Government have acted against the advice of the Lord Chief Justice, Master of the Rolls, and the President of the Family Division, among others; and notes the Secondary Legislation Scrutiny Committee’s disappointment that despite strong concern expressed by respondents to the public consultation the Government give no policy justification other than the generation of income”.

[Lord Beecham (Lab)]

My Lords, yesterday the House spent a good deal of time on the infamous pay-to-stay provisions of the Housing and Planning Bill. Today it is pay to sue that this order makes the subject of debate.

The Government have already ratcheted up fees for court and tribunal proceedings with a devastating effect in relation to employment tribunals, where applications have fallen by 70%. Now they seek to extract significantly higher fees in the civil and divorce courts, not only for the issue of proceedings but even for filing applications and consent orders in the course of those proceedings.

The report of the Secondary Legislation Scrutiny Committee reminds us, as the noble Lord has just done, that the Anti-social Behaviour, Crime and Policing Act 2014 permits a Lord Chancellor to,

“prescribe a fee of an amount which is intended to exceed the cost of anything in respect of which the fee is charged”—

in other words, to make a profit out of the parties to litigation over and above the actual cost to the system of those proceedings. It is as if people paying for a prescription had to pay more than their treatment costs to help fund the NHS or some other element of government funding. I hope that the Secretary of State for Health does not read Hansard tomorrow; it might give him ideas.

The court system costs £1 billion a year to run. The order is estimated to realise £64 million by increasing the fees for a range of proceedings. In possession claims for goods or land the fees rise from £280 to £355—an increase of 27%, or in respect of online claims from £250 to £325. Consent applications in the course of proceedings, which by definition involve a minimum of court time, see a doubling in the fee from £50 to £100. The fee for contested applications in the course of proceedings rises from £155 to £255—a 60% increase. Uncontested applications in, of all places, immigration judicial review proceedings and the Upper Tribunal more than double from £45 to £100, while contested applications more than treble, from £175 to £550—I think that figure may not be accurate, but nevertheless they are increased substantially. Controversially, as the noble Lord has indicated, the cost of divorce proceedings rises from £410 to £550, and this is represented as a generous concession from the £750 originally proposed.

--- Later in debate ---

[Lord Faulks]

My Lords, this debate has been short but not lacking in power nor indeed in criticism of the Government. It feels almost nostalgic to hear in this Session of Parliament criticisms of the Government generally in their handling of the economy and of the Ministry of Justice and the Secretary of State. We are on familiar ground. It even included, from the noble Lord, Lord Beecham, the customary disavowal of anything being wrong with the economy at the time of the election in 2010.

[Lord Beecham]

The noble Lord misrepresents me. I did not say that there was nothing wrong with the economy. I said that it was recovering—and it was.

[Lord Faulks]

I stand corrected, though the recovery seemed to be rather in the eye of the beholder. In any event, the approach of the noble Lord appears to be that these changes are not justified in economic terms and that they will or might have the tendency to cause hardship.

Of course, I readily accept—as I did in opening this debate—that fee increases are never likely to be popular. On the question of divorce, there was an acceptance, if not an enthusiastic one, by the noble Lord that we had listened to representations, concluded that the original proposal was too high and reduced the sum that needs to be paid in order to obtain a divorce. Reference was made by the noble Lord to what judges said in the course of giving evidence—distinguished judges, I fully acknowledge.

--- Later in debate ---

The purpose of these reforms is to increase fee income—we do not in any way shy away from that—and to reduce the costs of the courts to the taxpayer who would otherwise be responsible. We would not be doing this if we thought that there was any serious risk that it would reduce demand in the courts and tribunals. For all these reasons, and those I explained in my opening remarks, we are satisfied that the risks are minimal. I therefore commend this draft order to the House.

[Lord Beecham]

My Lords, I will not take up the time of the House. I do not, of course, agree with the Minister’s defence of the Government’s attitude, which seeks effectively to make a profit for the purposes of government—in whichever ministry—out of proceedings. In particular, the order imposes increases with no justification of their size, no common principle applied to the percentage increase, and in a way which, despite what the Minister says, will undoubtedly lead to people having great difficulties. The earnings level that I referred to is low. Beyond £245 a week, people will be expected to pay—and pay, potentially, several hundred pounds. That cannot be in the interests of justice. It is a continuing part of the Government’s assault on access to justice. But, having regard to the usual practice, I beg leave to withdraw the amendment while continuing to express regret at what many in the profession, and many who support people endeavouring to seek justice, maintain is a thoroughly bad decision by the Government and a thoroughly bad order.

Amendment to the Motion withdrawn.