Court fee rise plan 'a stealth tax'

12 April 2012

Government plans to hike court fees for civil proceedings such as debt cases have been branded a "stealth tax" on people sunk by the recession.

A consultation paper issued by the Ministry of Justice last month set out increases for a range of fees in civil and family courts in England and Wales which could be implemented over the next few years. The aim is to increase from the current 78% the contribution fees make to covering the £607 million-a-year cost of running the courts.

According to The Independent, this could see charges for some debt proceedings increasing by as much as 233%.

Shadow justice secretary Dominic Grieve said: "It is bad enough that ministers should address their own budget problems by fleecing people struggling with indebtedness, but to do so in the depths of a recession takes a special kind of cynicism.

"While Gordon Brown mouths platitudes about helping people, he is plotting a stealth tax on those in debt."

The Ministry of Justice said that fee concessions would continue to apply to ensure that the least well-off had access to justice.

Evidence from the Citizens Advice Bureau shows that the number of people contacting the charity for advice on debt increased dramatically over the last three months of 2008, as the recession began to bite, said The Independent.

In Birmingham, there were more than 3,000 debt inquiries between October and December - up 78% - while in Liverpool, debt cases rose by 55% to 1,824. The debt involved in the Birmingham cases totalled more than £14 million, compared to £7.8 million in the same period last year.

A Ministry of Justice spokesman said: "No decisions have yet been made as to what will happen as a result of this consultation. We are committed to making sure those who face money problems are given the best support possible. As a result, we will listen to every response and look at the impact increases in fees could have.

"The civil and family courts are self-funding and the proposed fee increases reflect the full cost of providing the court system for those cases."

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