Lord Timpson (Lab)

My Lords, one of the three guiding principles of the David Gauke Independent Sentencing Review was to expand and make greater use of punishment outside prison. We are determined to make sure that crime does not pay, which is why we introduced Clause 3, giving courts the power to impose income reduction orders on offenders who receive suspended sentence orders. From the debate we have just had and from my prior conversations, I know that noble Lords have a keen interest in how these will work in practice, and I am grateful for the opportunity to debate this at greater length today. I have been employing prisoners for over 20 years. Many are on day release and, in some cases, a proportion of their earnings goes back to victims. Income reduction orders are inspired by that principle: offenders must pay back to society for the harm they have caused. I first turn to Amendments 37, 41, 42 and 44, tabled by the noble and learned Lord, Lord Keen, and the noble Lord, Lord Sandhurst. They seek to specify what must be contained in the regulations detailing this scheme. I assure noble Lords that we are working cross-government to develop a process for delivering income reduction orders in a way that works cohesively with the rest of the powers that sentencers have at their disposal. We have intentionally kept the legislation flexible to ensure that we can deliver this measure in that way. For example, we do not agree that it would be appropriate for income reduction orders to be mandatory in certain circumstances. This would unnecessarily curtail judicial discretion to decide whether an order should be imposed based on the full facts of an individual case. The Sentencing Council is actively considering what updates to its guidelines are needed to account for the Bill’s reforms, including these orders. My officials are working closely with the council. I reassure noble Lords that regulations will be subject to the affirmative parliamentary procedure, so noble Lords will have the opportunity to debate and discuss these details prior to implementation. I turn to Amendments 38 and 40 and am happy to explain the rationale behind the drafting of this Bill. Let me be clear: this measure is a penalty for high-income individuals. It will ensure that criminals who break the law, and who benefit from keeping their jobs and continue to earn a significant salary, pay back to society. I doubt that anyone in the Committee would disagree with that. The intention is to set an income threshold that would apply at an appropriately high level. But the Bill sets a baseline that the threshold for an income reduction order can never be below. The aim is to ensure that those with incomes in line with the minimum wage cannot ever receive this penalty. The minimum wage is set at an hourly rate, and 170 times that is a reasonable approximation of the hours likely to be worked over a month. Noble Lords have also questioned why there is an upper limit. A core tenet of our criminal justice system is fairness and proportionality. So, setting a maximum percentage of an offender’s excess monthly income that can be collected protects individuals from receiving an excessively harsh penalty. We need to ensure that the punishment fits the crime. If the court determines that a higher penalty is appropriate and the offence is serious enough to carry an unlimited fine, the court will still be able to impose that, either instead of or as well as an income reduction order. But income reduction orders must not be a disincentive to employment or amplify existing hardship. As someone who has championed the employment of ex-offenders for years, this is the last thing I would want to happen. Therefore, they will be applicable only to offenders who earn or are deemed likely to earn a significant income. We will set the minimum income threshold through secondary legislation at an appropriate level. This will ensure that low-income households are not in the scope of this measure. As with any other financial penalty, judges will consider an offender’s means and circumstances when choosing whether to apply an income reduction order at sentencing. This can include, but is not restricted to, income, housing costs and child maintenance. Additionally, the provisions in the Bill allow the Secretary of State to set out in regulations the deductions that must be made when calculating an offender’s monthly income for the purposes of assessing whether an income reduction order can be applied. Amendment 79, tabled by the noble Lord, Lord Marks, proposes to create a power for a sentencing court to require an offender to make periodic payments or other contributions towards the maintenance and welfare of their dependants. I must inform the noble Lord that there are existing mechanisms to deal with payments to dependants. For example, the family courts are able to make spousal maintenance payments on divorce. This proposed new clause would require the court to inquire whether an offender has responsibility for children or other dependants. Although this is well intentioned, it risks creating practical difficulties. Inquiring whether a person holds parental responsibility, has dependent children or other dependants—and subsequently inquiring about the circumstances and reasonable needs of those dependants—may require interpretation of family court orders, birth records or informal care-giving arrangements for the purposes of verification. Imposing such a duty risks delaying sentencing. This Government have committed to identifying and providing support for children affected by parental imprisonment. As such, the Ministry of Justice and the Department for Education are working to determine the best way to do this to ensure that children get the support they need. This builds on a range of services offered by His Majesty’s Prison and Probation Service to help families and significant others, where appropriate, to build positive relationships with people in the criminal justice system. This includes social visits, letter writing, video calls, family days and prison voicemail. I hope this addresses the concerns raised by the noble Baroness, Lady Hamwee, and the noble Lords, Lord Marks and Lord Beith. I ask the noble Lords not to press their amendments.