UK Parliament / Open data

Social Action, Responsibility and Heroism Bill

The hon. Gentleman will have to let me finish my speech and decide in the round, but I can assure him that small businesses share the concerns I have been setting out. They believe the law needs to be more clearly on their side, but I will come back to the heroism piece and the social responsibility piece because these are important parts of the Bill as well.

We have focused on trying to ensure that we clamp down on the no win, no fee environment. In 2010 Lord Young published the “Common Sense, Common Safety” report, drawing attention to the fact that businesses were operating their health and safety policies in a climate of fear, and that the no win, no fee system introduced by the Labour party had given rise to the perception that there was no risk in starting litigation and it encouraged speculative claims. A whole industry had grown up around that.

Since that report was published, we have introduced a wide range of measures to tackle these damaging effects. We have transformed no win, no fee deals, so lawyers can no longer double their fees if they win at the expense of defendants or their insurers. We have banned referral fees paid between lawyers, insurance claims firms and others for profitable claims. We have reduced by more than half the fees lawyers can charge insurers

for processing low-level personal injury claims. We have banned claims management companies from offering cash incentives or gifts to people who bring them claims. We have changed the law to enable companies that breach claims management regulation unit rules to be fined. We have also helped remove the fear of being sued for breaches of strict liability health and safety duties by introducing changes last year through the Enterprise and Regulatory Reform Act 2013 to prevent claims for damages from being brought under health and safety regulations. In addition to these measures, we are currently taking action through amendments to the Criminal Justice and Courts Bill to extend the ban on offering inducements to include things such as iPads. I do not think they should be offered as a reward by those who drum up business in order to pursue personal injury claims. Together with other provisions in the Criminal Justice and Courts Bill requiring the courts to dismiss fundamentally dishonest claims, this will root out the insidious and damaging bad practice and unacceptable behaviour on the part of some claimants and their lawyers that has tainted personal injury claims in recent years.

About this proceeding contribution

Reference

584 cc1190-1 

Session

2014-15

Chamber / Committee

House of Commons chamber
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