Legal Services Bill [HL]

moved Amendment No. 134A: 134A: Clause 135, page 70, line 12, leave out ““£20,000”” and insert ““£25,000”” The noble Lord said: I shall speak also to Amendment No. 134B. These two amendments, both of which have been inspired by recommendations of the Joint Committee, concern the limit on redress for complaints. Amendment No. 134A would raise the limit from £20,000 to £25,000. We have no particular attachment to that figure, although, for example, it would bring compensation into line with the estate agency ombudsman limit. The main purpose of the amendment is to follow up the Joint Committee’s request that the Government, "““provides further explanation of the rationale for deciding on this amount””—" that is, £20,000. Evidence received by the committee suggested that the £20,000 redress limit might be too low. The Joint Committee, as many Members of the Committee will be aware, was left unsatisfied by the Government’s reasoning behind settling on the figure of £20,000. We would therefore appreciate a full justification from the Minister. Amendment No. 134B pursues another Joint Committee recommendation. It would insert in the Bill a requirement that the OLC should consult on the level of the compensation redress limit after a set period. The amendment suggests two years, which is consistent with the Joint Committee’s proposal; but, again, we have no strong attachment to that figure. What is important is to set down such a requirement for review in the Bill and, similarly, to ensure that there will be regular subsequent reviews. Given the weight of evidence already mentioned in favour of raising the redress limit, and the uncertainty over the new Part 5 ABS regime in particular, a powerful review seems appropriate. I beg to move.