Clause 10 - Private prosecutions: regulations about costs payable out of central funds

Victims and Courts Bill – in a Public Bill Committee at 2:30 pm on 19 June 2025.

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Question proposed, That the clause stand part of the Bill.

Photo of Alex Davies-Jones Alex Davies-Jones The Parliamentary Under-Secretary of State for Justice

In 2020, the Justice Committee carried out an inquiry into the private prosecution sector, resulting in the publication of a report, “Private prosecutions: safeguards”, on 2 October that year. I thank it for its diligent work and carefully considered recommendations. It made a number of recommendations to address the systemic issues highlighted by the Post Office Horizon scandal, and the Ministry of Justice has recently concluded a separate public consultation on the regulation and oversight of private prosecutors more generally. We are carefully considering the responses to that consultation, and will in due course publish a Government response on the steps we are taking to improve practice in the private prosecutorial landscape, including legislation if necessary.

Separately, the Justice Committee made a recommendation about the costs recoverable from central funds by private prosecutors. It found that there is a disparity between the compensation available to a private prosecutor seeking to recover their expenses from public funds and a defence practitioner whose client is in receipt of legal aid. A private prosecutor can apply to the court for an order of payment from central funds of an amount that offers reasonably sufficient compensation for their expenses. However, there is little clarity about what constitutes reasonable sufficiency and, as a result, cost orders for private prosecutors tend to be at least five times higher than the rates available to legal aid lawyers, often for acting in the same cases.

The Select Committee referred to evidence that the current cost regime for private prosecutions may give rise to perverse financial incentives, which are unlikely to lead to a just system. The Committee therefore recommended that the Government should review the funding arrangements for private prosecutions to reduce the disparity between payment rates for claims made by private prosecutors and defendants from central funds.

The Government are moving to implement the recommendation in two stages. First, clause 10 establishes a power for the Lord Chancellor to set, through regulations, rates at which private prosecutors may recover their expenses from central funds. Secondly, after Royal Assent, the exact rates will be prescribed via regulations, following a period of stakeholder engagement and formal consultation.

Clause 10 amends section 17 of the Prosecution of Offences Act 1985, so that costs ordered from private prosecutors will be subject to regulations made under section 20(1A) of the Prosecution of Offences Act 1985. It also amends the Lord Chancellor’s existing power in section 20(1A) to make regulations regarding payments out of central funds. At the moment, the power expressly does not apply to private prosecutors’ costs orders. The clause removes that exclusion and thereby enables the Lord Chancellor to make regulations to set rates for the expenses that may be recovered by a private prosecutor from central funds under a section 17 costs order.

Photo of Kieran Mullan Kieran Mullan Shadow Minister (Justice) 2:45, 19 June 2025

I am pleased to say that I was a member of the Select Committee, and I sat on that inquiry and signed off its recommendations. The issue of costs was particularly pertinent to me at the time. I welcome the commitment to extensive consultation, because while the Select Committee absolutely recognised the growing disparity between costs restrictions in non-private prosecutions and private prosecutions, we heard that that was still an important route to justice for some people and we would not want to overly restrict it, so the rate at which costs restrictions are set and the process for that will be important.

The rest of my remarks relate to what the Government are not doing. I note the Minister’s commitment to considering further changes, but she will know that opportunities to legislate do not always come along when we might want them to. Of course, the Government have committed to legislating later in the year on sentencing, and they will almost certainly be legislating on court reform, following Brian Leveson’s review. That is a hefty timetable of legislation in the increasingly short time available in this Parliament, so it may well be that there are not future opportunities to legislate in this important area.

I am sure that all hon. Members are familiar with just how badly private prosecutions can go wrong for some people, particularly in relation to the Post Office Horizon scandal. While there was some CPS involvement in some of those prosecutions, the majority of them were private prosecutions, and we all know the devastating consequences of some of them. We are yet to see whether criminal proceedings might flow from the inquiry, and the extent to which misconduct may have taken place. That is why, as part of our report, the Committee called for regulation of private prosecutions to bring them in line with the ordinary expectations we have of the good practice of the CPS—they really should not be any different.

I would like to hear from the Minister a clear commitment, rather than a generic assurance, and a timetable, during this Parliament, for when the Government expect to develop and publish proposals for the regulation of private prosecutors and when they hope to legislate to bring them into force. It is all well and good for the previous Government and this Government to speak powerfully about the Post Office and the impact that the scandal has had on people, but I think the public want to see steps taken to ensure that it cannot happen again. I am sure the inquiry will have recommendations about that, but the regulation of the private prosecutions sector will be important in ensuring that we do not see a repeat. I would welcome comments from the Minister in that regard.

Photo of Alex Davies-Jones Alex Davies-Jones The Parliamentary Under-Secretary of State for Justice

On the wider concerns about private prosecutions, the shadow Minister will have heard me say that we will shortly be publishing our response to the consultation that this Government carried out. We recognise that there is more to do in this area, and we will act if the recommendations suggest that we should do so. He will also know that, sadly, this Government inherited a justice system in absolute chaos, which has resulted in us having to bring forward a number of urgent reviews, including into sentencing and court backlogs, and a number of legislative vehicles. I guarantee that there will be ample opportunity for us to legislate on these issues during this parliamentary Session should that be deemed appropriate given their nature.

Photo of Kieran Mullan Kieran Mullan Shadow Minister (Justice)

The point I was trying to make is that regulation of the private prosecutions sector will not necessarily be in the scope of legislation on sentencing or court reform. The MOJ will already be bidding for parliamentary time to bring through two potentially big Bills. I ask again whether the Minister might want to reconsider whether this Bill, in which we are literally legislating on private prosecutions, is the right vehicle to address the sector’s regulation, because we may not get another opportunity in this Parliament.

Photo of Alex Davies-Jones Alex Davies-Jones The Parliamentary Under-Secretary of State for Justice

I am confident that there will certainly be more opportunities, given, as I have said, the nature of the issues facing the Ministry of Justice and the need for the Government to act to correct some of the difficulties and problems that we inherited. This Government are getting on with action to clean up the mess in our prisons, to reduce the criminal cases backlog and, through this Bill, to ensure that victims’ rights are heard. We are not sitting on our hands and waiting for appropriate vehicles; we are getting on with the job, and that is exactly what we are doing today.

Question put and agreed to.

Clause 10 accordingly ordered to stand part of the Bill.

Ordered, That further consideration be now adjourned. —(Samantha Dixon.)

Adjourned till Tuesday 24 June at twenty-five minutes past Nine o’clock.

Written evidence reported to the House

VCB05 Edmonds Marshall McMahon

VCB06 Help for Heroes

VCB07 SUDEP Action

VCB08 Dr Elizabeth Dalgarno, University of Manchester and SHERA Research Group

VCB09 Joint submission from Action for Children, Barnardo’s, The centre of expertise on child sexual abuse, NSPCC, and Women’s Aid

VCB10 Bob Browell, Counter Fraud Manager, Finance and Operations Directorate, Macmillan Cancer Support