The Ministry of Justice (MoJ) announced last year plans to raise up to £42m extra a year by increasing some fees for HM Courts and Tribunals Service (HMCTS), but there are mixed feelings amongst the consultation responses.
The MoJ revealed last November its plans to increase some court fees by 10 per cent after it published a consultation. The plan estimated that it the increased rates would cover up to 202 fees, and would raise an additional £34m to £42m a year.
The consultation ran from 10 November 2023 until the 22 December 2023. It received a total of 52 responses, with the majority, 62 per cent, from those working in the legal or public sector.
It was revealed this week on what the respondents thought, which showed that they were divided on the general principle of increasing fees.
The findings noted that 40 per cent disagreed with making increases to selected fees, while 37 per cent agreed it was fair and a further 15 per cent were undecided.
In comparison, when asked whether up to 202 selected fees should be raised by 10 per cent to partially reflect changes in consumer price index, 62 per cent of respondents disagreed with the proposal to increase fees by 10 per cent, while 15 per cent agreed and 21 per cent were unsure.
Of those who disagreed, many were concerned that fee increases of this level would impede access to justice for the most vulnerable given increases to the cost of living.
The majority of the respondents felt that some of the fees included in the proposal should be removed from scope, the most commonly suggested for removal were for divorce applications, probate grants, and applications to the Traffic Enforcement Centre.
The respondents were also divided on the proposal to make regular inflation-based increases to fees every two years, as 35 per cent stated that they agreed this approach would be beneficial, whereas 40 per cent disagreed with the proposal.
One of the Government responses was that it “recognise the impact that increases to the cost of living have had, which is why we are looking to reflect only a partial increase to consumer price index through fee uplifts, rather than the full 17.8 per cent increase from March 2021 to March 2023.”
They added that they “believe that this represents a good balance between ensuring that fees remain affordable and that they are more closely aligned with the rising costs incurred by HMCTS.”
Another response from the Government stated that “court and tribunal fees are charged to ensure that HMCTS has sufficient funding to deliver its services effectively.”
The Government added that “since they were last updated in 2021, the cost to HMCTS of administering its services has increased.
“This has resulted in decreasing levels of cost recovery over time, and a less sustainable funding model for HMCTS. Increasing fees to reflect changes in the general level of prices since they were last updated in 2021 will help protect the real value of the fee income stream for HMCTS and reduce levels of taxpayer subsidy.”