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Legal Aid, Sentencing and Punishment of Offenders Bill

My Lords, when we were opening this debate the noble Lord, Lord Alton, intervened to make the very valid point that it was only by him raising the issue of mesothelioma in debate in this House that this important issue has received the attention that it deserved. I pay tribute to him, having known him for a long time as an adept campaigner. Whatever happens, he can take great credit for the way that he has focused attention on this terrible disease. As with some of our other debates, however, this is not about whether you are in favour of or against mesothelioma victims. This is a debate about how our legal system is being reformed. We are implementing fundamental reforms of conditional fee agreements, or CFAs, following the recommendations in Lord Justice Jackson's review of civil litigation costs. The current regime allows for risk-free litigation for claimants and substantial additional costs for defendants. We want to restore a fair balance to the system, with meritorious cases being brought at proportionate cost. We are therefore abolishing recoverability of success fees and ““after the event””, or ATE, insurance premiums. These reforms are intended to apply across the board and will cause a real shift in our society's approach to litigation. That is the general case, and it is important not to lose sight of it in considering respiratory disease claims, mesothelioma claims or others, but I want to repeat some specific points about mesothelioma. No one is suggesting that these tragic cases are contributing in any way to what has been described as a compensation culture—this is a horrible disease which acts very fast, and that suggestion has never been any part of my case in putting forward the Government's position, as noble Lords know. It is a horrific disease and we have nothing but sympathy and compassion for its victims. Recent Governments of all colours have taken measures to help claimants in these cases, and this Government are continuing that work with due urgency. In an earlier debate I spoke of recent legal changes that have significantly lowered the bar for mesothelioma claims. These cases are always tragic but they are mainly straightforward and relatively low risk. The costs should not be as high as they can be under the current regime. Legal costs need to be controlled in these cases, as in others. These reforms have been carefully put together as a balanced package. Having considered the interests of claimants against the interests of defendants, we are implementing a number of additional measures. These include a 10 per cent increase in damages for non-pecuniary loss and, in personal injury cases, a cap on the success fee of 25 per cent of damages, excluding future care and loss. Let me emphasise that that is a maximum cap. No lawyer is required to take any success fee from a claimant, and many lawyers will wish to maximise the damages that victims can receive. We are also introducing qualified one-way costs-shifting so that ““after the event”” insurance is no longer necessary in respect of the other side's costs. These measures are intended to work alongside the abolition of recoverability to ensure that all sides have an interest in keeping costs down and resolving more claims more quickly. Because speed is the other crucial element in mesothelioma cases, it is imperative that fair compensation is paid as quickly as possible. Under the current regime, however, standard cases can take as long as two years or more to be resolved. That is often longer than the sufferer survives. The Government have their part to play in speeding up this process and we are engaged with stakeholders and government colleagues in relation to it. However, to exempt mesothelioma cases wholly from our reforms would be to retain the status quo, undermining the package of reforms and allowing cases to drag on. I should highlight that the reforms under Part 2 are not taking place in isolation. Last week I met with the Minister for Welfare Reform, my noble friend Lord Freud, to discuss the work that he is actively undertaking with stakeholders. I am glad to confirm that real progress has been made and that the Department for Work and Pensions hopes to make an announcement before the House rises for the summer on a programme for settling these disputes, a programme that will be speedier and avoid unnecessary litigation. The Government are not ignorant of or indifferent to the plight of mesothelioma sufferers. These are important cases which need to be dealt with as quickly as possible—that is a matter of humanity. Of course, greater speed generally also means reduced costs, which benefits everyone. As I say, we are actively working with the DWP to ensure that victims can access the help that they need. I urge noble Lords to consider the whole picture, not just the element of reform which we have in front of us today. The work that we are doing on civil litigation costs is closely related to the work that we are undertaking on helping mesothelioma victims who are unable to trace their insurers. To undermine one reform may be to endanger another, which is a scenario that we should avoid. I urge noble Lords not to insist on Amendment 31 and to support Motion E. I beg to move. Motion E1 (as an amendment to Motion E) Moved by