A scheme to support people on low incomes with court fees is set to be revised after a government review found that income thresholds were outdated and out of step with increased living costs. However, any changes may not happen until the autumn - despite the government acknowledging that people are living in a financially challenging time now.
The Ministry of Justice is consulting on changes to its ‘Help with Fees’ scheme, which was set up in 2013 – the year vast areas of law were cut from the scope of legal aid.
The consultation document states that the government’s review of the fee remission scheme ‘has identified that the income thresholds are outdated and out of step with increased living costs’.
For instance the gross monthly income threshold is £1,170 for a single applicant without children, amounting to an annual income of £14,040.
‘This is far below the current gross annual salary of £19,760 for a person earning the National Living Wage (NLW), working 40 hours per week. The gap will only continue to widen when the NLW hourly rate increases to £10.42 from 1 April 2023, and the gross annual salary rises to approximately £21,674,’ the consultation paper states.
Under the proposals, income thresholds would be set based on data on living expenses published in the Office for National Statistics living costs and food survey, which is produced annually.
Other changes include taking into account, for the first time, the extra costs associated with looking after a child over 14 and raising the scheme’s age cap from 61 to the state pension age of 66.
Justice minister Mike Freer said: ‘We recognise this is a challenging time financially for people across the country so it is vital we continue to ensure everyone can afford justice. The Help with Fees scheme has helped thousands of vulnerable people to pay court fees since its inception in 2013 and our reforms will make the scheme more generous and targeted at those who need it most.’
The consultation paper says the ministry aims to publish full details of its revised scheme within 12 weeks of the consultation closing. The consultation closes on 30 May, so details of the revised scheme may not emerge until the end of August.
‘We will then prepare any necessary amendments to regulations, and the accompanying guidance for applicants and HMCTS. At the same time, work will start on making the necessary changes to the HwF digital system,’ the consultation paper says.
HM Courts & Tribunals Service granted partial or full fee remission for 122,517 applicants in 2021/22. This was equivalent to £81m in fee remissions and accounted for 11% of the total value of fee charges that year, which was £736m.
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