Lord Keen of Elie (Con)

My Lords, Clause 3 is of course a novel sentencing tool, and it is entirely correct that the Committee should probe its design with some care. Many of the amendments before us seek reassurance that the scheme will be fair and proportionate, and indeed that it will be workable in practice. The noble Baroness, Lady Hamwee, with her amendment, draws attention to the basic question of impact. An income reduction order must not be set at a level that undermines an offender’s ability to work, train or maintain stable housing. If these orders are to be effective, they must support rehabilitation, not jeopardise the very stability on which it depends. The noble Baroness’s amendments highlight that there is a risk here that requires very clear scrutiny. The amendments in my name and that of my noble friend Lord Sandhurst raise a series of questions about the architecture of the scheme. As drafted, the Bill establishes broad powers to reduce an offender’s income, yet it leaves almost all the crucial detail to regulations that we have not yet seen and that may in due course prove insufficiently robust. Amendments 37 to 44 ask the Government to place in the Bill the essential elements that will govern how these orders operate in the real world. They begin by posing the most basic question of all: what do the Government mean by “monthly income”? Are we assessing gross or net income? How are fluctuating earnings to be treated? What of the self-employed or those on irregular or zero-hours contracts? It is very difficult to see how a fair and consistent system can be construed without clear statutory guidance on these points. If Parliament is to authorise a mechanism allowing the state to deduct a portion of a person’s income month after month, it is surely right that we also understand with precision how that income is to be defined, what thresholds will apply, how caps are to be set and which factors the court must take into account before imposing an order. Amendment 44 goes to the heart of our concern that the Bill as currently drafted lacks the necessary clarity about the conditions under which an income reduction order may be imposed. Leaving this almost entirely to secondary legislation again risks undermining both transparency and fairness—surely qualities that are fundamental to the integrity of such a system. These amendments illuminate the substantial gaps in the present drafting and ensure that Parliament does not sign off on a broad new power without understanding how it will work in practice and what safeguards will accompany it. I look to the Minister to provide the clarity that has so far been somewhat lacking. For our part, we do not oppose the principle of creating a more flexible and enforceable means-based penalty. But, before we take such a significant step, we must be satisfied that the framework is sound, that the protections are clear and that the consequences, particularly for those on the margins, have been fully thought through. I hope the Minister will address these concerns.