Baroness Hamwee (LD)

I speak to Amendment 36, and will also speak to Amendment 39. Amendment 79 in the name of my noble friend Lord Marks of Henley-on-Thames is in this group. As rapid consultation during the course of this afternoon’s proceedings has revealed that none of us is entirely clear what we wanted to say, I hope that it is not too late to de-group it. There will be the opportunity to come to it on one of the days next week. I am sorry if that causes a problem to any colleagues. Otherwise, I will just let the Minister reply as if it had been introduced. Amendment 36 and 39 deal with income reduction orders. They are complex and not very practical, I would suggest. These orders were not, I understand, recommended in the independent sentencing review. They are not easy to achieve; they can impose additional and unpractical burdens on the court system, which as we know is overstretched, and on HMRC and benefits administration. A lot of fines are imposed by the court; they are the most common criminal sanction, but payment is persistently low. In 2023, 49% of fines remained unpaid after 12 months, despite the requirement that they are set at an amount which can be paid within a year. If that rather simpler system cannot reliably recover half of what is imposed within a year, the more complex income reduction order is not likely to be more successful. The IRO penalises a person for finding employment by making deductions from their earnings each month. This poses the risk of discouraging individuals from engaging in employment or, at any rate, formal employment. They may move into low-visibility work or decide they are better off not working at all. The impact of court fines is disproportionately severe for low-income households. People with court debts are very likely to live in social housing and very likely to be unemployed, strong indicators of economic precarity. The fines system, particularly additional court charges, rigid payment plans and deductions from insufficient benefits, often escalate the total owed beyond what is affordable for people on low means. I do not need to spell out the path that some people may follow. I have some questions for the Minister. First, what is the projected collection rate for IROs, and how does it compare with the current 50% unpaid at 12 months for court fines? How will the system track fluctuating incomes, PAYE changes, zero hours and self-employment, and resolve disputes without adding to the burden on the court? What employment impact assessment has been conducted—I am going to come back to employment in a moment—given the Minister’s well-known support for hiring people with convictions to cut reoffending? How will IROs avoid pushing low-income households further into poverty? I said that I would come back to employment. Our Amendment 39 raises the dangers, as we see it, of income reduction orders hindering the good things that we want to see—offenders taking up employment and training and achieving housing. If the net income with which an offender is left is too low for these various activities, the net benefit would be a disbenefit as we see it. I beg to move Amendment 36.