Criminal Injuries Compensation Scheme Debate

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Department: Ministry of Justice

Criminal Injuries Compensation Scheme

Sadiq Khan Excerpts
Wednesday 7th November 2012

(11 years, 6 months ago)

Commons Chamber
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Sadiq Khan Portrait Sadiq Khan (Tooting) (Lab)
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I beg to move,

That this House affirms its commitment to the blameless victims of violent criminals who suffer physically, emotionally and financially from the injuries inflicted upon them; recognises that the Criminal Injuries Compensation Scheme is the fund of last resort for much needed compensation for these blameless victims and is relied upon by many thousands of victims each year; and that in the opinion of the House the draft Criminal Injuries Compensation Scheme 2012, which was laid before this House on 2 July, should not be approved.

The Opposition are asking the House not to approve the changes passed by a narrow majority in Committee last week, and to reconsider. However, let me say up front that we are willing to work with the Government to see whether there are ways to reduce the Ministry of Justice budget while continuing to help blameless victims of crime. We do not believe the two are mutually exclusive.

It is worth beginning by setting out basic principles and an understanding of the criminal injuries compensation scheme. A non-statutory compensation scheme for victims of crime was first introduced in 1964. Not even the previous Lord Chancellor, the Minister without Portfolio, was a Member of the House then, but he and the right hon. Member for Wokingham (Mr Redwood) were members of a Cabinet that introduced a statutory scheme in the mid-1990s in the form of the Criminal Injuries Compensation Act 1995.

The current guidance to the 2008 scheme stresses that it is designed to compensate

“blameless victims of violent crime”.

The scheme recognises that the award can never fully compensate for all the injuries suffered, but an award is recognition of public sympathy for the blameless victim. Those basic principles, which are based in primary legislation, are important. If a person is not blameless, they do not get any compensation. If a person is not the victim of a violent crime, they do not get any compensation. If a person is a minor victim, they do not get any compensation.

Under the draft scheme, nearly 90% of those who have received compensation would have had their compensation slashed or cut totally. Of around 40,000 eligible cases annually, some 50% would no longer receive any compensation whatever and another 40% would have their compensation severely reduced. Compensation would remain the same in only around 10% of cases. Compensation in most cases is not a large amount of money—a couple of thousand pounds in many cases—but it is crucial for people whose livelihoods might have been interrupted as a result of their injuries. We know from our constituency surgeries that bills rack up and need paying. Compensation also plays a part in giving recognition for the pain and suffering of the victim, as well as providing a degree of closure after an attack. But for many thousands of future victims of crime the benefits of receiving compensation will no longer be available.

Those who will no longer receive any compensation include those with injuries such as permanent speech impairment; multiple broken ribs; post-traumatic epileptic fits; and burns and scarring causing minor facial disfigurement, including the many victims of vicious dog attacks, many of them young children or postal workers doing their jobs.

Angela Smith Portrait Angela Smith (Penistone and Stocksbridge) (Lab)
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More than 6,000 postal workers a year suffer injuries as a result of dog attacks. For example, Paul Coleman of Sheffield required multiple operations on his leg after a vicious attack. People like him will no longer get compensation if this proposal goes ahead. Is that not a devastating verdict on the work done by postal workers in this country?

Sadiq Khan Portrait Sadiq Khan
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I thank my hon. Friend for that one example of the “blameless victims”—the language in the legislation—who will no longer be eligible for any compensation.

Crispin Blunt Portrait Mr Crispin Blunt (Reigate) (Con)
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The right hon. Gentleman began by referring to basic principles. Surely it is a basic principle that ideally it should be the offender who pays compensation to the victim, not the state? I am looking forward with some interest to the saving suggestions that he mentioned.

Sadiq Khan Portrait Sadiq Khan
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There are many words that I would use to describe the former Justice Minister, but “ignorant” is not one of them. He will know that people are eligible for this compensation only if the offender cannot pay the compensation because he has not been found or has no insurance. I will come to that point shortly, and the hon. Gentleman will be able to rectify the error in what he has just said.

The compensation cut will cover injuries such as significant facial scarring, punctured lungs, permanent brain injuries affecting balance and fractured joints that lead to continual significant disability. Those are not minor scrapes, as the Government Front Bench would have us think—far from it. Some 60% of the victims of the 7/7 attacks who received compensation would be subject to these reductions. Only 9% of them would have their compensation protected under these plans. Government Members know this. Indeed, at the delegated legislation Committee that initially discussed the changes, the right hon. Member for Wokingham, who deserves credit for being part of the Cabinet that put this scheme on a statutory footing, said:

“I have never been shy about saying that I would like us as a Government to spend less overall, but I have never once thought that it had to be done by cutting something so sensitive or giving a worse deal to the disabled, the poor or the most vulnerable. I hope that the Government will think again.”

He also said:

“I want Members to understand that the last place I would look for savings would be benefits and payments to the vulnerable, injured and incapacitated—indeed, I would not look there at all. If anything, we should be more generous. I did not come into Parliament to see those things cut.”—[Official Report, First Delegated Legislation Committee, 10 September 2012; c. 19-22.]

To be fair to the right hon. Gentleman, I should say that he also suggested where savings could be made in the administrative costs of the scheme—as one would expect from him.

What about the hon. Member for Ealing Central and Acton (Angie Bray)? She said that

“rowing back on compensation for postal workers seems strange”.—[Official Report, First Delegated Legislation Committee, 10 September 2012; c. 5.]

If the hon. Member for Cardiff North (Jonathan Evans) will forgive me, I will not read his entire speech, but, with his permission and the indulgence of House, I will read two paragraphs:

“The aspect of the greatest concern to me is dog attacks, certainly upon postal workers but particularly upon children. I will mention just one case, which relates to a Labour councillor in my constituency, Councillor Dilwar Ali—the hon. Member for Llanelli probably knows him, as he is very active in Welsh political circles. His young son was the victim of an horrific dog attack that has been the subject of widespread press and television attention. Reconstructive surgery was needed on this poor young child’s face. The person in charge of the dog did not set the dog on the child but failed to exercise any sort of control over it, and he was subsequently sent to prison. He will therefore not be in a position”—

the hon. Member for Reigate (Mr Blunt) may want to listen to this—

“to be sued in the civil courts. Criminal injuries compensation is the only resource available to that child. I say to my hon. Friend the Minister that I do not want to be asked to vote today in favour of a change that says to that child, ‘From now on, because of the difficulties of the deficit, you’re not going to get any compensation.’”

The hon. Member for Cardiff North went on to say to his Front Bench:

“I have the greatest respect for my hon. Friend, and I congratulate her on her appointment, but she has just assumed the post and this is an inheritance—some would say a hospital pass—from her predecessors in the Department. I ask her and the Secretary of State to reconsider the proposal and examine the points made in this debate.”—[Official Report, First Delegated Legislation Committee, 10 September 2012; c. 19.]

Jonathan Evans Portrait Jonathan Evans (Cardiff North) (Con)
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May I just say to the right hon. Gentleman that I have never sat in the House and heard somebody from the Opposition Benches quote me with approval at such length? Let me make it clear to the House that I do not withdraw a word of what I said. I stand by every one of them. However, I am sure that he would not want to mislead the House either. In the course of my remarks, I made it clear that I was prepared to accept the Minister’s arguments regarding the need for a change in the scheme and for a more efficient system. I also made it clear that the budget currently bears no relation to the number of people who would be eligible for compensation. It was for that reason that change was necessary. The Opposition’s motion, as I understand it, would result in no change.

Sadiq Khan Portrait Sadiq Khan
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The hon. Gentleman has been very fair. At the outset, I said that I accept that there should be a reduction in the budget and that I am willing to work with the Government if they reconsider the draft scheme, which, as he knows, is identical to the one that gave him so much difficulty.

David Burrowes Portrait Mr David Burrowes (Enfield, Southgate) (Con)
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The right hon. Gentleman has not quoted the following:

“The scheme does not aim to provide individually tailored compensation packages covering each and every type of damage...Anybody who thinks that it does misunderstands the nature and purpose of the scheme.”—[Official Report, First Delegated Legislation Committee, 14 July 2008; c. 13.]

Those are the words of the hon. Member for Garston and Halewood (Maria Eagle), when the compensation scheme was last considered in 2008. Does he agree with that and does he recognise the context?

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Sadiq Khan Portrait Sadiq Khan
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Of course I do. At the outset, I set out the basic principles of the scheme. Of course it is the case that with 25 tariffs we cannot expect to compensate every single victim for every single injury they have suffered. It is compensation of last resort. Let me say this. What was the reward for the honesty and candour shown by those three Members for speaking up for vulnerable witnesses and for their constituents? They were sacked from the Committee, which subsequently reconvened on 1 November to debate the draft scheme, and now the ministerial team is peddling myths about the scheme. We have heard a couple of them already. I have the letter that the Justice Secretary wrote to Liberal Democrat and Conservative MPs—not to Labour MPs, I hasten to add—on MOJ letter-headed paper claiming that only minor injuries will no longer be covered. That is nonsense: the criminal injuries compensation scheme at the moment makes payments only for injuries that have a disabling effect for at least six weeks. No payments are made for cuts and grazes, as has been suggested, unless they are serious enough to leave a permanent and visible scar.

Helen Jones Portrait Helen Jones (Warrington North) (Lab)
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Does my right hon. Friend agree that the Government have to explain why someone off work for six weeks—the minimum period under the scheme—who, even on the minimum wage, would lose £900, if they were on statutory sick pay, should then be plunged into further debt and poverty? Why should a victim of crime, as well as enduring the crime, be plunged into debt as a result?

Sadiq Khan Portrait Sadiq Khan
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To be fair to the Government, I will assume that this is an unintended consequence of their obsession with cutting budgets without considering the consequences of legislation on blameless victims. We will hear shortly from the Minister, who will have to respond to my hon. Friend’s important example. We all have examples from our own constituencies of where blameless victims will suffer as a consequence.

Conservative and Liberal Democrat MPs were also told in the letter that the scheme was financially unsustainable, but the Government’s own figures in their impact assessment do not back that up. The average cost of the scheme over the past four years has been £192 million—this out of a departmental budget of more than £8 billion. We also hear that the scheme is too generous and that the taxpayer can no longer afford it. Well, the tariff payments were not generous in 1996, when they were first introduced, and there has only been one 10% increase in the intervening 16 years, even though inflation has reached almost 50%. It is also worth remembering that, in 2010, 79% of all compensation paid out was for awards below £5,000. Nor is it right to accuse the scheme of being poorly policed. In 2009-10, only 57% of applicants received any compensation. Ineligible applicants are weeded out.

The Government also claim that the scheme is not needed, because people can get compensation elsewhere —we heard that said by the former Justice Minister—but that is also wrong. The scheme only makes awards to those who cannot receive compensation from any other source—for instance, if no assailant has been apprehended or claims on insurance are not possible. Also, we should not believe the propaganda claim—I am not sure whether you received the letter, Mr Deputy Speaker—that the scheme is collapsing under the weight of ever-growing numbers of applications. The data are clear: over the past 10 years, the number of eligible applications has remained broadly stable, at about 38,000 to 39,000 a year. Nor is it right when Ministers claim that this is about refocusing resources on the most serious injuries. There is no refocusing. This is a plain and simple cut.

Crispin Blunt Portrait Mr Blunt
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The right hon. Gentleman’s speech is devoid of context—the £750 million of debt associated with the scheme, the three-year backlog of payments and insufficient money to fund it. That context would have been helpful, but I am sure that the Minister will provide it. At the end of the process, however, the Government and offenders will be spending more money on victims of crime than when we started. That is the right place to be. More money will be being spent on victims at the end of this process. The right hon. Gentleman needs to put the scheme in the wider context of the Government’s victims policy.

Sadiq Khan Portrait Sadiq Khan
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I can understand why the hon. Gentleman is so emotional about his legacy, which I will come to shortly. More money will not go to victims as a consequence of the Government’s plans. More money will be wasted on commissioning services for victims around the country, but more money will not go to victims.

The £50 million cut arising from the draft scheme is not being added to compensation for the most serious injuries. Not a single award is increasing. Even the hon. Member for Westmorland and Lonsdale (Tim Farron)—the president of the Liberal Democrats, who is not in his place—who sat on the most recent Delegated Legislation Committee, repeated the myth. He is wrong. He said:

“Many of us feel that it is fair to redistribute money within the pot to the victims of crime with the most serious injuries,”

so that most of it goes to those

“who have suffered the most incapacitating injuries with the longest lasting impact.”—[Official Report, Seventh Delegated Legislation Committee, 1 November 2012; c. 19.]

That is another example of somebody being misled by the myths from the Front Bench.

Jonathan Evans Portrait Jonathan Evans
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Will the right hon. Gentleman give way?

Sadiq Khan Portrait Sadiq Khan
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I want to make some progress, because others want to speak.

We know what the spreading of these myths and untruths is really about: building up a narrative that says that cuts must be made to the scheme if it is to survive, but those cuts are nothing to do with the sustainability of the scheme. Rather, they are part of a wider political narrative pursued by this Government—one that is as far from the “We’re all in this together” line that they espouse as we can get—in which, as has been demonstrated, innocent victims are left without support to see them through the difficult times after serious and violent crime.

The hon. Member for Reigate talked about his legacy for victims, so let us talk about it and about what the Government have done since May 2010. We have had the aborted attempts to introduce 50% sentence reductions for early guilty pleas, simply to reduce the prison population and save money. Then we had the abolition of indeterminate sentences for the most serious and violent offenders at greatest risk of reoffending. The Government have failed to accept the previous victims commissioner’s recommendation for a victims law. We have also seen the role of the victims commissioner left vacant for more than twelve months and cuts to support for victims. It is hardly surprising that the hon. Gentleman gets so emotional when these things are brought to his attention, and today we have cuts to compensation for innocent victims of crime.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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My right hon. Friend is right to lead the charge against these disgraceful cuts to the criminal injuries compensation scheme, but he is also right to point out the need to enshrine the rights of victims in statute in a better way. Is that not why he proposes to introduce a victims law?

Sadiq Khan Portrait Sadiq Khan
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Absolutely, and I look forward to working with the Government—if they really believe they are on the side of the victims—to ensure that that happens soon, rather than waiting for 2015.

Victims and potential victims up and down the country must have thought that the entire Justice team being sacked by the Prime Minister in his reshuffle would lead to a change in direction by the new Ministers. On 10 September, when the first Delegated Legislation Committee met to discuss the criminal injuries compensation scheme, the hon. Member for Maidstone and The Weald (Mrs Grant), then newly appointed as a Justice Minister, brought proceedings to a premature end by claiming:

“I have listened very carefully to what hon. Members on both sides of the Committee have said today about the scheme. I am a new Minister and, having taking some advice and thought very carefully about everything that has been said and the importance of the scheme to people whom we all care about, I have decided not to move the motion on the criminal injuries compensation scheme”.—[Official Report, First Delegated Legislation Committee, 10 September 2012; c. 25-26.]

“Hurrah!”, one might think, “Common sense prevails!” For just one minute, let me be generous to the Minister. Let us assume that the reason for this sanity was not because the excellent new Justice Whip—the hon. Member for Bexleyheath and Crayford (Mr Evennett), who is not in his place—could add up and had worked out that the vote would be lost, but because the Government were genuinely going to listen to concerns.

However—it upsets me to say this—I am afraid that the good faith and good will towards the new Minister from Opposition Members has evaporated very fast indeed. She might have listened, but she did not hear, because exactly the same draft order was tabled four weeks later. Not a dot or comma had been changed: it was exactly the same legislation that the Minister said she was going to reconsider. One can understand why the previous Justice Minister, the hon. Member for Reigate, is so emotional, because no changes were made—although I acknowledge the change to the non-statutory element of the scheme, with the establishment of a £500,000 contingency fund for special circumstances, but no commitment has been given on how long it will be available for; there is nothing in the draft scheme about that. That fund is a smokescreen and it could be cut at any time, without the need for parliamentary approval. It represents just 1% of the £50 million that is to be cut, and it will probably help just a few hundred innocent victims of crime, at most, compared with the 34,000 who are going to see their compensation either slashed or cut totally as a result of the proposals. The fund is a drop in the ocean, and it would be misleading to refer to it as a concession.

We have also seen wholesale changes to the delegated legislation Committee. Last week, the Government stuffed the new Committee with their loyalists and—it pains me to say this, Mr Deputy Speaker; you know that I am a polite man—with lackeys. The right hon. Member for Wokingham and the hon. Members for Ealing Central and Acton and for Cardiff North had been sacked and were no longer available to sit on the Committee, and they were replaced by three—yes, three—Parliamentary Private Secretaries, and a vice-chair of the Tory party for good measure.

It is a sad state of affairs when the Government have to wheel out the payroll to support them in a delegated legislation Committee, even though they have a built-in majority. But don’t worry, the president of the Liberal Democrats—whom I e-mailed today to say that I would be mentioning him in the debate—was there to join Labour Members in being the advocates for blameless victims. Or so one would think. What did he do? How did he show whose side he was on? The president of the Liberal Democrats did exactly as we would expect: he abstained. Had he voted with us last week, that legislation would not have been passed.

The whole new Justice team had a small window of opportunity, during which we might have given them the benefit of the doubt. After all, their predecessors left behind what the hon. Member for Cardiff North has described as a number of “hospital passes”. The Under-Secretary of State for Justice, the hon. Member for Maidstone and The Weald even raised our expectations, and we hoped that the cuts to the criminal injuries compensation scheme might be re-examined. She was even made Minister for victims in the intervening weeks. Minister for victims! You really could not script it, given that her first task as Minister was to gut the criminal injuries compensation scheme, which was a big slap in the face for the innocent victims of violent crime. Despite claims that she would listen, we have seen nothing but the merest tokenism.

Victims do not usually have someone to speak on their behalf. The victims commissioner post has been vacant for more than 12 months; she is no longer around to speak up for them. However, Victim Support, the Police Federation, the Association of Personal Injury Lawyers, trade unions such as the Union of Shop, Distributive and Allied Workers and the Communication Workers Union, the Legal Services Agency and parliamentarians who are in touch with hard-working people are united in believing that the Government’s proposals are flawed and need to be reconsidered.

In that earlier Committee sitting, the right hon. Member for Wokingham spoke for many of us—and when did we last hear a Labour Front Bencher say that? Many of us agreed with him when he said that we did not come into Parliament to see small amounts of compensation for innocent victims of crime being slashed and cut. I look forward to testing whether that sentiment will be borne out in the Division on our motion.

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Damian Green Portrait Damian Green
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I will give way for the last time, and then make some progress, as I am conscious that many Members want to speak.

Sadiq Khan Portrait Sadiq Khan
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I do not want to intervene on the Minister when he is in full flow, but is it not correct that there are 17,700 cases a year in bands 1 to 5, none of which will be eligible for the criminal injuries compensation scheme under the proposals? He calls such cases minor, but they include permanent speech impairment, deafness lasting more than 13 weeks, multiple broken ribs, post-traumatic epileptic fits, and burns and scarring causing minor facial disfigurement. All the people with such injuries will no longer be eligible for the criminal injuries compensation scheme.

Damian Green Portrait Damian Green
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I can only repeat to the right hon. Gentleman what I have just said to the hon. Member for North Ayrshire and Arran (Katy Clark): if the injuries are serious and long lasting, people will still be eligible for the scheme. There is a genuine misunderstanding. [Interruption.] Let me get on to the bands in a moment, and I hope I will assuage the concerns of the right hon. Member for Tooting.

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Damian Green Portrait Damian Green
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The hon. Lady has had a go already. I should like to make some more progress. First, let me make a final point about the issue of dogs, which has been raised by Members on both sides of the House.

It is inaccurate to say that all postal workers who had suffered dog bites would be eligible under the current scheme, which makes payments when dogs are intentionally set on victims and in a small number of other cases. Some of the figures that have been bandied around do not reflect the reality.

Let me now return to the expenses involved in the scheme. The cumulative effect of the reforms will deliver savings of about £50 million a year, but that is not to say that the Government are aiming to reduce the amount available to victims. We are determined to get the balance right, so that the burden is shifted from the taxpayer to those who commit crimes.

The new victim surcharge arrangements were implemented on 1 October. Along with other financial impositions, they are intended to raise up to an additional £50 million per year to be spent on victim services. That is how it should be. Offenders who have caused harm to victims and to society as a whole should have to put their hands in their pockets and pay for the services for which they themselves have created a need. At present, out of a total central Government spend on victims and witnesses of about £66 million, only about £10 million comes from offenders. That means that the burden rests too heavily on the taxpayer. With the money that we are taking out of the scheme and the money that we are raising from offenders, we are changing that balance.

Sadiq Khan Portrait Sadiq Khan
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How much of the victim surcharge, which the Minister expects to amount to £50 million, will go directly to compensate the victims of criminal injuries?

Damian Green Portrait Damian Green
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As I have just said, the money will be spent on victim services. [Interruption.] I am interested to note that the Labour party does not seem to regard victim services as important. They are hugely important, as I have said on several occasions.

Sadiq Khan Portrait Sadiq Khan
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Why can’t we do both?

Damian Green Portrait Damian Green
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The right hon. Gentleman is in danger of enticing me to draw attention to the present Government’s fiscal inheritance. We simply cannot—[Interruption.] The right hon. Gentleman said in the responsible part of his speech that he was prepared to look for savings in the budget of the Ministry of Justice, but judging by his remarks from a sedentary position all he wants to do is increase spending in every area.

Tariff payments will continue to be available to those who are most seriously affected by their injuries, and to the victims of the most distressing crimes. What that means in practice—

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Crispin Blunt Portrait Mr Crispin Blunt (Reigate) (Con)
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The speech we just heard from the right hon. Member for Oxford East (Mr Smith) in many ways mirrored the shadow Secretary of State’s rather narrow speech and failed to look at the context in which the Government have had to assess the scheme. As I was the junior Minister responsible at the time, I can explain the problems we were presented with. The scheme was £750 million in debt and it was taking years to get people paid properly.

The right hon. Member for Oxford East referred to some of the payments that have been made to address the backlog. Those payments could be made because other savings were found in the Ministry of Justice, under the excellent director of finance, Ann Beasley—one of the ways we can spend money quickly within the departmental budget is to take any left at year-end and put it into the criminal injuries compensation scheme to address the backlog. That was a priority because victims of crime are a priority for this Government.

We were faced with a situation in which the scheme was massively in debt, payments were horrendously late and, as the right hon. Member for Oxford East might have spotted, there was no money. The Ministry of Justice is trying to cut its budget by £2 billion a year over the course of the comprehensive spending review period. I noted the shadow Secretary of State’s opening comments about wanting to work with Ministers to help to look for savings, which he agreed have to be made. I listened, but I am afraid that I heard not a single suggestion for where other savings might be made in order to deal with the backlog.

The challenge for Ministers was to put the scheme into financial order, which meant taking some difficult decisions, and that, of course, is what we did. We had meeting after meeting to look at the bands, reductions that could be made and different ways of assessing it. That received the highest attention, including from the Prime Minister, who took an interest in it, because it is extremely important to get it right. But we are faced with the fact that savings have to be made, so the scheme proposed here is the one that has come forward. Of course uncomfortable decisions have to be made, as the right hon. Member for Oxford East acknowledged, but it is a pity that the Opposition never try to suggest what those difficult decisions should be or explain what they would do.

Sadiq Khan Portrait Sadiq Khan
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Does the hon. Gentleman now accept that his Front Benchers are wrong to give the impression that the reason for the cuts is that they want to provide services for victims, because he has been honest and said that the reason for the cuts is that they want to make cuts?

Crispin Blunt Portrait Mr Blunt
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The right hon. Gentleman is right: cuts have to be made to the departmental budget that we inherited and the scheme was, to all intents and purposes, bankrupt. That had to be addressed properly and in a hurry. Savings had to be made throughout the rest of the Department, so it was extremely difficult to include compensating expenditure in the scheme in order to rescue it.

The Government’s proposals will put the scheme in sensible order. As my right hon. Friend the Minister for Policing and Criminal Justice has outlined—as did the new Under-Secretary of State for Justice, my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) during the two Statutory Instrument Committees—they will get rid of bands 1 to 5 and make sure that victims of sexual crime and the most serious crimes are protected.

We then looked at the whole context of what we ought to do about victims of crime. Frankly, I am proud to say that we pushed to examine how we could stretch the victim surcharge so that we could get offenders to contribute to victims’ services. Under the proposals made, not in the statutory instrument, but in parallel with it, at least an extra £50 million will be raised from criminals for victims. Surely it is a basic principle that offenders should fund victims’ services and, indeed, compensation, which is an issue to which the shadow Secretary of State alluded, and which I will come on to later.

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David Burrowes Portrait Mr Burrowes
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I am a very patient man, but this issue has dragged on too long and people’s patience has been exhausted as they have waited for some compensation from the criminal injuries compensation scheme. The reality is that the scheme cannot be afforded. Last year, the authority was provided with additional funding and a total of £449 million was paid to victims, the largest amount in a single year. Despite the cash injection, total liabilities currently stand at some £532 million. This Government will not ignore the historic underfunding of the scheme. We will not hide behind administrative efficiencies. We are facing up to this difficult issue. We want to express solidarity, but we are not jumping on the bandwagon. We cannot simply have a sustainable scheme if it has to go cap in hand to the Treasury every year asking for a top-up. That does not do justice to the cause of victims. It must be sustainable and on a stable footing. We need a decent, open and transparent way to deal with compensation.

Sadiq Khan Portrait Sadiq Khan
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Can the hon. Gentleman confirm that Dod’s is up to date—is he still a PPS?

David Burrowes Portrait Mr Burrowes
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Yes, that is the case.

Sadiq Khan Portrait Sadiq Khan
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Thought so.

David Burrowes Portrait Mr Burrowes
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Fair enough, although I am sure the right hon. Gentleman will acknowledge that all Members have a right to speak up about issues concerning victims. Opposition Members certainly do not have a monopoly on that. As the right hon. Gentleman himself mentioned, this Minister, like previous Ministers, has had to pick up the legacy from previous Governments in terms of compensation for victims. That only £30 million was paid by offenders in court-ordered compensation is not acceptable, given that the criminal injuries compensation scheme costs more than £200 million a year. Like others here, I remember going into court as a defence practitioner. After a defendant was convicted, sometimes a request would come from the court for the application for compensation but there would be nothing in the Crown Prosecution Service file. The information would not be available, and applications would just go by the board.

When a victim impact statement comes through, there is no information about the details of compensation, so they have to go down the long, laborious route of making a civil claim or pursuing criminal injuries compensation. We are saying that they should get the justice and compensation they deserve in court. As one of the architects, I encouraged that approach, and it was followed through quite properly. We now have a proper statutory duty to order compensation, not just in terms of what the Government have sought to do with the victims’ surcharge for those who have fines imposed, but in serious cases involving those who have community penalties and have served prison sentences. I remember too many clients who felt that they got away with it in the sense that there were no victims. The person who gets shut out is the victim.

We have quite properly introduced what was a legacy of the previous Government. We remember many a piece of legislation from the previous Government—one that was on the books in 1997 was the Prisoners’ Earnings Act 1996, which was not implemented by the previous Government. Why was it not implemented? Because the advice the Government apparently received from the Home Office was that they would never find the work in prisons for prisoners to do to make it viable. We are not simply going to accept that; we will make sure that offenders pay for their crime and pay when they are in prison. That is what we are doing.

Despite the cowardice of the previous Government when it came to victims of crime, we are now ensuring that £800,000 each year will go to victims of crime through court-ordered compensation. That will avoid the labyrinth of compensation schemes and avoid the concerns expressed by the hon. Member for Kingston upon Hull East (Karl Turner) about local commissioning. The compensation will go directly to victims when it is ordered, as it should be ordered, by the courts. We are picking up a legacy and that is why it is important to consider the issue in its proper context.

Not only is the victim surcharge being extended in terms of the 1996 Act and court-ordered compensation, but we are removing the £5,000 cap on orders to offenders to pay compensation in magistrates courts. I remember victims having to wait months, if not years, for the opportunity to get redress, with offenders having gone off to the Crown court. That is being changed. The cap is being removed to allow compensation in magistrates courts.

Recently, a constituent visited my surgery who was concerned because she had never received any compensation. She was the subject of a serious burglary. Months later, the offender was found, the offence was taken into consideration in a clear-up, and he went to court, but the victims were not even told so no application for compensation was made. That happens time and again. We need to ensure that offenders pay for their crime. That is what victims want. They want justice. They want redress. We recognise that the scheme has a part to play, but a contributory part. Compensation is perhaps a misnomer when we are talking about wanting to deliver justice properly. That is what we are doing. We are delivering that to ensure that £50 million—let us try and get more—goes to victims. Let us ensure that we are on the side of victims. We will not jump on a bandwagon; we will make difficult decisions to ensure that the scheme is sustainable, fair and just.

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Nick de Bois Portrait Nick de Bois (Enfield North) (Con)
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It is a pleasure to follow the hon. Member for North Ayrshire and Arran (Katy Clark). I listened carefully to her contribution.

Perhaps I should declare an interest. I am not a Parliamentary Private Secretary, nor have I been a shadow spokesman—

Nick de Bois Portrait Nick de Bois
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I thank the shadow Minister for his confidence, but I fear it will be a very long time before that happens.

I came to this debate for the same reason I sought election to the Select Committee on Justice, which was that, with no legal training or legal background whatever, I felt I could occasionally take the perspective of an ordinary citizen. It is with that in mind that I want to focus on what I think is the response of many to being a victim of crime, of which I have sadly had far too many in my constituency. From those who have come to see me, I am confident that—I am sure Members will understand this—the immediate, default position is not about compensation, but about justice and the ability to cope with the shock and emotional effect of being a victim. Of course there are different degrees of that, and some people deal with it extremely well.

One thing that has perhaps not been identified as one of the most important facets of the proposal is the victim surcharge. People look for justice and support, and I believe they think that the offender should compensate. That is true.

Early in my parliamentary career, I was fortunate enough to be able, with the support of my hon. Friend the Member for Enfield, Southgate (Mr Burrowes), to introduce what became known—by us, anyway—as Enfield’s law. It requires that anyone aged 16 or over who uses a knife in a threatening or endangering fashion should receive a mandatory jail sentence.

Sadly, I have met too many victims of knife crime in my constituency. When they come to see me, it is not to discuss the frustrations caused by the bureaucracy of the compensation scheme but to talk about the emotional support that they need or, sometimes, the remoteness of the Crown Prosecution Service and the judicial system when dealing with prosecutions. They always speak very highly of the victim support organisations. I support the new legislation for many reasons, but the overriding one is that it will direct funds towards those all-important organisations.

I want to bring a case to the House’s attention. The two younger brothers of an Enfield resident had been abused by their grandfather for approximately 16 years. The case highlighted the shortcomings of the criminal justice system, including the lack of engagement of the victims in the process. They felt that they were left alone. Unlike the scenes that we see in television programmes such as “Law and Order”, my constituents had no contact with the CPS until the day of their Crown court appearance. They were told that any other arrangement could compromise their case. They were even told by their CPS barrister that the case would have to finish on the upcoming Friday morning as he was going on holiday the following day.

However, my constituents drew massive support from Victim Support, of which they could not speak highly enough. The charity was with them every step of the way throughout the trial. They were not concerned about compensation at that point. The problem that would have confronted them would have been the need to go through a difficult and bureaucratic process to claim it. The measures are therefore welcome; they have been undersold and understated, but they will improve the situation.

Sadiq Khan Portrait Sadiq Khan
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Does the hon. Gentleman not accept that improving the services that victims receive and providing blameless victims with compensation are not mutually exclusive?

Nick de Bois Portrait Nick de Bois
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The point that I am trying to make is that there is a difficult economic context, and that we must take into account the failure of the system in the past. I want to see more effort put into raising money and directing it towards the necessary emotional and practical support. I think that it was the hon. Member for North Ayrshire and Arran who spoke about asking our constituents about this. The question of emotional support is what confronts me more and more, compared with what are, in most cases, relatively insignificant levels of compensation. To answer the right hon. Gentleman’s question, I would like the money to go in the direction of providing such support. That is why I like the idea of raising the money not from the taxpayer but from elsewhere, including from the offenders, to help to fund that vital work. If we can do anything to strengthen the victim support organisations, I will support it.

I do not want to leave the impression that all is well in this regard, however. Frankly, we do not know whether that is the case. We are embarking on a new scheme. I hope that the proposals will be seen as a living document, although perhaps not in the strictly judicial sense. I seek an assurance from the Minister that the Government will commit to a firm review period. If there are any flaws or shortcomings, the House should not be inflexible. We should be prepared to re-examine the issue in good faith and determine whether any areas need improvement. I am sure that we will hear about any such shortcomings in our constituencies, even if the Minister does not hear about them.

I want to raise a couple of technical points on which I would like clarification. Will this be a reciprocal scheme in the context of the European Union, and will it be used as such? Also, will the proposed scheme be open only to UK nationals and not to those from outside the EU, should a reciprocal agreement exist?

At the end of the day, while I may be touching on what some Members think are the slightly softer issues, I do not find anything wrong with shifting as much of the responsibility for funding compensation from the taxpayer to the offender. That is something with which I hope the whole House would agree, even if some Members would disagree over the means to do it. That is why I wholeheartedly support the reform, albeit in the hope that we will always be open to reviewing it if any shortcomings become apparent.

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Helen Grant Portrait Mrs Grant
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In the Delegated Legislation Committee last week, I said that, although we saw no merit in making further changes to the scheme, we were nevertheless persuaded that something ought to be done for certain low earners who were temporarily unable to work due to their injuries and who would no longer fall within the scheme. I announced a hardship fund that aims to meet a pressing need for people who might well find themselves in real financial difficulty.

Opposition members of the Committee were critical of the lack of detail I provided on that occasion. However, the Minister for Policing and Criminal Justice provided details today in his opening speech, and it is a great shame that the shadow Secretary of State, the hon. Member for Stoke-on-Trent South (Robert Flello) and the hon. Member for Edinburgh East (Sheila Gilmore) seem unable to acknowledge the fairness and decency of the fund and recognise that it will help some of the very poorest people in our country.

Sadiq Khan Portrait Sadiq Khan
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Will the Minister give way?

Helen Grant Portrait Mrs Grant
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No. I have been very generous in taking interventions in three debates so far, so I will make my points and will not waste any more time.

Moving on, we have defined eligibility for the scheme more tightly so that only the direct and blameless victims of crime who fully co-operate with the criminal justice process obtain compensation under the scheme. That is surely right. Those with unspent convictions will not be able to claim if they have been sentenced to a community order or been imprisoned, and those with other unspent convictions will be able to receive an award of compensation only in exceptional circumstances. Not only that, but applicants will need to be able to demonstrate a connection to the UK through residency or other connections.

The hon. Member for North Ayrshire and Arran (Katy Clark) and many others have been critical of our approach to dangerous dogs, because in future the Criminal Injuries Compensation Authority will pay only where the dog was set upon the victim by its owner. A similar approach already applies to injuries caused by motor vehicles; in order for the applicant to be eligible, a car has to have been deliberately driven at him or her. Contrary to our critics’ assertions, that will not have much of an impact on claimants because awards for dog attacks are few. That said, aggressive dogs of course present a serious and growing problem, which is why the Government are active in that area, with work going on at the Home Office, the Department for Environment, Food and Rural Affairs and elsewhere.

The last major element of the scheme is special expenses. As is consistent with our policy of focusing payments on the most seriously affected, we have retained the vast majority of those payments in their entirety. However, we have made it clear that the scheme should be one of last resort in relation to special expenses and that payments will be made only if the claim is reasonable.

Finally, we have made some changes to the process of applying for compensation in order to make the scheme easier for applicants to understand. For the first time, for example, the evidence required to make a claim is being included in the scheme, which is a simple but plainly very helpful change. The Government believe that the draft criminal injuries compensation scheme provides a coherent and fair way of focusing payments towards those seriously—