Oral Answers to Questions
Debate between Oliver Heald and Rob Marris(7 years, 3 months ago)
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Sir Oliver Heald
Yes. I had a very useful meeting with my hon. Friend, and I can certainly confirm both the points he makes. I am particularly keen to get that skylight fixed for him. I am working hard on that.
Rob Marris (Wolverhampton South West) (Lab)
In his reply to the question from the hon. Member for Boston and Skegness (Matt Warman), the Minister referred to modernising the tribunal system. Does he agree that part of that modernisation should be getting rid of employment tribunal fees, the introduction of which has led to a cut in the number of employment tribunal cases by two thirds and a cut of more than 80% in sex discrimination cases? Can the Minister announce today that those fees will indeed be abolished as part of access to justice and modernising the system?
Sir Oliver Heald
As the hon. Gentleman knows, we have been reviewing employment tribunal fees, and I can say that the publication of that review is imminent. Having said that, there is a difference of opinion across the Chamber on this matter. We think it right that individuals should contribute to the costs of the tribunals. It is also worth bearing in mind that ACAS has increased its workload in employment cases from about 23,000 cases a year—the number it used to conciliate—to 92,000 cases now. The result has been a very large increase in the number of cases that do not then proceed to the tribunal.
Access to Justice
Debate between Oliver Heald and Rob Marris(7 years, 3 months ago)
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Rob Marris
I will get on to that. It is interesting and a great declaration, but of course other changes in the past five years or so have led to an increase in insurance company savings of £8 billion in claims costs. That has not been passed on in terms of reduced premiums, which have continued to go up, so I will believe it when I see it. The Government’s own calculations suggest that at least 90% of the money has to be passed through—the term for returning money to policy holders—for there to be any benefit at all.
The Minister for Courts and Justice (Sir Oliver Heald)
As the hon. Gentleman will know, the small claims limit is being put up in all the other jurisdictions, apart from this one, to £10,000. Is it really right that motorists should each pay £40 a year extra, simply so that the sort of solicitors firms he referred to can continue to do work on these very small claims?
Rob Marris
The limit has not gone up in Scotland for personal injury claims. I will get on to the figure of £40 a year and whether it is accurate or not.
So much of this information comes from the insurance companies, which are making huge profits. Premiums have gone up 17.2% in the past year, which I regard as unacceptable. I asked the Association of British Insurers about that on 3 January, and it kindly replied a week later. I am not a statistician, but I have knocked around statistics a lot, and its approach is strange, to say the least. It says:
“Given there is no objective medical evidence for whiplash type injuries, with diagnosis often being made on the basis of the claimant’s word, the ability to prove beyond all reasonable doubt that the claimant has not sustained an injury is both incredibly challenging and expensive.”
That is typically misleading of the Association of British Insurers. The Minister will know, as a distinguished lawyer, that if the insurers refuse to pay out on a claim and the policy holder says the insurers are wrong, the policy holder makes a claim in the civil courts against his insurers, where the test is not about proving something beyond reasonable doubt, but based on the balance of probabilities, which is a much easier test to pass. So that is a straw man, but it is true in terms of criminal actions.
The ABI also states that
“actual criminal convictions clearly only represent the tip of the iceberg, and are not in any way a true reflection of the level of fraud that insurers and wider society face on a daily basis… While some of those cases may have an innocent explanation, many more cases of successful fraud go undetected, especially for whiplash.”
The ABI is assuming what it is trying to prove. It is assuming that there is fraud, but it admits that if there are such cases, they are going undetected. We do not know whether there are undetected cases of fraud or there never was a case of fraud. If it assumes what it is trying to prove, I certainly hope my insurance premiums are not set by insurance company actuaries who take such an approach.
Sir Oliver Heald
That is all very well and good, but the hon. Gentleman must know that the number of road claims has gone up from 460,000 in 2005-06 to 770,000 in 2015-16, and that 90% of them are for whiplash at a time when our roads are getting safer and our cars have seen huge road safety improvements in their manufacture. How can this be?
Rob Marris
It cannot be because the Minister has the figures wrong. The Government’s compensation recovery unit indeed talks of 771,000 claims in round terms, of which 441,000 are for whiplash. That figure has come down by 7% since 2011-12. The overall figure is already coming down, so it is not going in the direction the Minister thinks it is and perhaps he will rethink the proposals.
The ABI says that its statistics
“are therefore intended to provide an indication of the volume and value of fraud detected by the industry. These statistics do not include claims which involve exaggerated personal injury, particularly for whiplash, where the claim has been paid.”
However, it also says that insurers pay out on 99% of claims, so apparently we are talking about the 1% and that is what all these assumptions are based on. That is not a good basis for creating public policy.
Rob Marris
I will reply to the hon. Lady first. I agree entirely with her. I will give way to the right hon. and learned Gentleman, as the Minister, but I will just say that the Ministry of Justice anticipated between 5,000 and 7,000 applications annually. The actual figures are far lower than that. One reason—perhaps the Minister, when he intervenes, can promise to do something about this—is that, understandably, many solicitors are unwilling to make applications to the ECF because it is so bureaucratic, even though this Government say that they do not like bureaucracy; it takes between six and 10 hours just to make the application. The cuts have had far-reaching negative implications for children and vulnerable young people as well.
Sir Oliver Heald
I was just going to ask whether the hon. Gentleman agrees that domestic violence cases are within scope, and that a victim would have legal aid in the way that I outline. As for the exceptional cases fund, which the hon. Gentleman has challenged me to say something about, 1,200 cases a year is the current rate, and 53% are being granted; that is the latest.
Rob Marris
That is helpful, but it kind of makes my point for me. The right hon. and learned Gentleman’s own Ministry—before he was there, I have to say—anticipated between 5,000 and 6,000 such applications. A 53% success rate seems to me, on the face of it, to mean very stringent criteria, given how long a solicitor will spend preparing the application—and they will not get paid for that preparation, which suggests that the solicitor making the application on behalf of the vulnerable individual thinks that there is a very good chance of success. But what do they find? It is about half.
In time-honoured tradition, I will ask the Minister some questions, which I hope he will be able to answer. I did give him some notice of them, but only at noon today, so although he is a hard-working Minister, he may not have had the chance to get on top of them all. On small claims, does the Minister accept that there will not be a level playing field if the proposed changes are introduced, because they will remove funding currently available for injured people to instruct lawyers, leaving them having to act as litigants in person on personal injury small claims?
Does the Minister seriously contend that there is a fraud crisis in relation to workplace injury claims, which the proposed changes would cover, and if he does, which he may, what independent evidence, not from the insurance industry, does he have of such a crisis?
The impact assessment for the proposals says that there will be a cost to the NHS of at least £13 million a year and to the Treasury of at least £135 million a year, and an increase in insurance company profits of £200 million a year. Does the Minister accept that that means that the Treasury will lose out while the insurance industry gains? If he does not accept that, perhaps he could explain why.
Can the Minister say by what date the Department will publish its review of the impact of employment tribunal fees, and what data the Department has on how such fees have affected the use of alternative dispute resolution services? What steps will the Government take to try to ensure that all children and vulnerable young people can get legal aid? The Minister has already mentioned some changes in that regard. Following on from that, will he give a commitment to review the exceptional cases funding system to make it much more accessible, and if he will not, can he explain why not?
Oral Answers to Questions
Debate between Oliver Heald and Rob Marris(7 years, 6 months ago)
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Sir Oliver Heald
It is of course important that legal aid is available for victims of domestic violence, particularly those seeking protective injunctions. On the evidence requirements, in April we more than doubled the time limit on evidence from two to five years, and we have introduced a provision that allows the Legal Aid Agency to grant legal aid if it is satisfied that an application demonstrates financial abuse. This is important and it has been varied in the light of experience over the last two or three years, and we will continue to monitor it.
Rob Marris
Access to justice and legal aid are pillars of the welfare state, yet almost one third of legal aid areas in England and Wales have one or no housing advice providers, including the legal aid area covering my constituency. One provider is not enough, so what steps will the Government take to ensure there are at least two providers for each area?
Sir Oliver Heald
It is important to recognise that housing cases where a person’s home is at risk fall within the scope of legal aid. The Law Society has raised concerns, as the hon. Gentleman will know. There are a lot of these cases in some parts of the country, but very few in other parts. What we have done is, through the Legal Aid Agency, taken active steps to ensure that there is adequate provision of housing advice around the country.
Sir Oliver Heald
On the point about one or two providers, there are some places where one firm is providing a range of offices and functions across a number of clients, and other areas where the circumstances only really require that there should be something like a telephone hotline, which there is. The provision that is being made is what is needed.