Lord Davies of Gower (Con)

My Lords, Amendment 35 seeks to extend the grace period for the payment of a penalty notice from 28 days to 42 days. The intention behind this change is to ensure that individuals and businesses who receive a penalty notice are not unduly penalised by an unreasonably short payment window, allowing them more time to address the fine in a manner that is fair and manageable. In many circumstances, particularly for small businesses and those already facing financial pressure, a 28-day period may not provide sufficient time to arrange payment, especially if the penalty notice is unexpected or substantial. Extending the grace period to 42 days would offer a more reasonable timeframe for individuals and businesses to manage their obligations without rushing into payment or incurring additional costs. A longer grace period would also account for the reality that certain individuals or businesses may face logistical challenges in arranging payment within a short window. This might include delays in receiving the penalty notice, awaiting advice or support on how to address the fine, or having to co-ordinate the payment within the wider operational needs of their business. Extending the period to 42 days would provide the flexibility needed to handle these situations responsibly. The principle behind penalty notices is not to punish excessively but to deter non-compliance while giving those who have committed an infringement a chance to rectify their actions in a reasonable manner. By extending the payment period, we can help avoid situations where individuals or businesses are unable to pay within the initial 28-day period and, as a result, face additional penalties or other consequences that exacerbate their situation unnecessarily. This amendment would therefore ensure that the penalty system remains proportionate and that the focus remains on encouraging compliance rather than imposing punitive measures that may create further hardship. Extending the grace period would also encourage greater compliance with the penalty system as a whole. When individuals and businesses are given adequate time to pay, they are more likely to do so in full, reducing the administrative burden on chasing unpaid fines. Furthermore, it would prevent the risk of penalties escalating due to an inability to pay on time, which could of course undermine the effectiveness of the penalty system. It is also worth noting that longer grace periods are common practice in other areas of regulation and penalty enforcement. For example, when it comes to tax payments, local government fines and other civil penalties, 42 days is frequently viewed as an appropriate balance between giving adequate time to pay and maintaining the deterrent effect of the fine. The amendment would align the penalty notice grace period with that established precedent, ensuring consistency across regulatory frameworks. Extending the grace period for the payment of a penalty notice from 28 to 42 days would strike a fair and reasonable balance between ensuring compliance with public protection requirements and avoiding undue financial hardship. The amendment would provide individuals and businesses with the time they need to manage their responsibilities without excessive penal- isation, fostering a system that is both effective and compassionate. I urge the Government to accept the amendment and support a more balanced and equitable approach to penalty notices.