THE ELIGIBILITY CRITERIA FOR WHOM CAN CLAIM THEIR COURT FEES BACK IS CHANGING
The Ministry Of Justice (MOJ) has announced changes to the eligibility criteria for its Court Remission Fee a.k.a 'Help with Fees' scheme and we are pleased to report, the definition is expanding rather than being constricted. This article will provide a brief introduction to remissions for court fees while outlining the changes to be brought into force.
SUMMARY
The changes that are to be brought into force 27th November 2023 include:
New Income Threshold: This has now been raised to £1'420 for a single adult without children. Previously, the gross monthly income threshold was £1'170 per applicant without children. That amounted to an annual income of £14'040 far below the current gross annual salary of somebody earning the National Living Wage on 40 hours per week.
Age Cap: This has been increased from 61 years of age to 66 for either a party OR their partner with the additional provision that they will satisfy the disposable capital test if they have less than £16'000 disposable capital.
Disposable Capital Test: Eligibility for fee remission is based on the disposable capital test and gross monthly income test. The disposable capital test will be simplified to a 3-band structure (as opposed to the current 10-band) while the lower disposable capital threshold will be increased from £3'000 to £4'250 pursuant to Article 3 Courts and Tribunals (Fee Remissions and Miscellaneous Amendments) Order 2023:
A party satisfies the disposable capital test if the fee payable by the party and for which an application for remission is made is -
(a) Up to and including £1'420 and the party's disposable capital is less than £4'250;
(b) £1'421 to £5'000 and the party's disposable capital is less than 3x the fee payable.
(c) £5'0001 or more and the party's disposable capital is less than £16'000.
If a party satisfies the disposable capital test, they must then pass the gross monthly income test. It is this latter test which will determine if the party will receive a full fee remission or pay all or part of the fee.
WHAT ARE FEE REMISSION A.KA. HELP WITH FEES?
The stated purpose of the 'Help with Fees scheme is to protect universal access to justice by providing financial assistance to those on low income together with little to no savings towards their court fees. First implement in 2013, the scheme applies to all courts and tribunals in England & Wales with individuals whom satisfy the criteria being eligible for a full or partial refund of their court fees. Save for minor amendments in 2014 and 2021, the scheme has been left untouched since conception.
AIMS
The UK GOV's announcement of the changes can be accessed by clicking here.
In response to spiraling inflation the MOJ launched a consultation paper in March 2023 to promote a comprehensive set of reforms designed to ensure a fairer and more efficient system. The consultation paper acknowledged the crucial importance of the scheme noting that in 2021/22 alone, some £81 million in fee remissions was granted being around 11% of the total value of the fee charges that year. The paper further acknowledged the wider societal content for the proposes reforms including in particular the economic challenges arising from the Covid-19 pandemic.
In announcing the changes, Justice Minister mike Freer has emphasised:
Income threshold for 'Help with Fees' scheme increased.
Intervention will support even more families through rising cost of living.
£80 million in support through 'Help with Fees' scheme in last year alone.
The changes to income thresholds will vary depending on different families and their circumstances, including the age of any children. For example:
For a couple with 2 children under 14, the monthly income threshold would increase from £1,875 per month to £2,980
For a single person with no children the threshold would increase from £1,170 per month to £1,420
Additional financial support will be provided for parents with a child aged 14 or over, considering the greater cost associated with looking after older children.
THE CHANGES
We have summarised the most significant changes above in addition to which:
Applicants can now use three-month average earnings for the income test. Previously, it wasn't clear on how those with irregular income should be assessed. This meant that some applicants were at a disadvantage, for example when they had to make an application after a month where earnings are skewed, perhaps because of bonuses, where monthly earnings wouldn't be a fair representation of an average month for the year.
Updates to the list of capital excluded from calculation under the scheme. For example, household furniture and articles of personal clothing are removed from the list of excluded disposable capital.
Changes to the application forms to expressly permit legal representatives and litigation friends to confirm and sign on an applicant’s behalf.
A new deadline to provide evidence in support of an application within 28 days of the court requesting this. If this isn't sent in time, the guidance states that the application will be treated as abandoned and won't be processed further and that a new application for the court or tribunal to consider. It's unclear whether if this deadline is missed, whether the overall three month time limit will effectively “start again”. It's probably safest to assume that it wouldn't and that this would be at the court’s discretion.
COMMENT
Access to justice is a fundamental right in any civil society and at a time when citizens are suffering due to policy-induced spiraling inflation it is right that the MOJ address the needs of the vulnerable caused by these miscalculations.
While we hope that the changes will assist the vulnerable and go some way to address the needs of the vulnerable, successive governments should keep the policy under much more regular review as to be frank, it was outdated before the pandemic the changes in 2014 and 2021 amounting to little more than tinkering.
Ultimately, while access to justice in civil courts is a fundamental right, it is a distant 2nd priority to citizens facing the criminal courts. The eligibility of legal aid utilises distinct definitions from the HMRC with e.g. utility bills and rent being considered part of an individual's disposable income. This means mandatory bill payments are not factored into your eligibility criteria and very often, people facing unemployment due to unproven allegations will be forced to chose between paying rent and power or for legal support while at their most vulnerable.
For more information at to the state of the UK's legal aid for citizens facing criminal charges, see the 'Unlock Charity's guidance by clicking here.
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