Government snubs calls for hefty cut in tribunal fees

The government has rebuffed calls for a substantial cut in employment tribunal fees, claiming the regime introduced in 2013 is 'working well'.

However, a long-awaited review published this afternoon proposes to raise the threshold for fee remissions to level of the government's 'living wage' and consult on proposals to extend support to people on low incomes.

In a written ministerial statement, justice minister Sir Oliver Heald said tribunal fees have been ‘generally successful’ in meeting the scheme's original objectives.

He added: 'This government believes it is important that those who can afford to pay for ETs continue to do so. An extra £9m a year is raised through ET fees. The review concludes that fees have been successful in promoting conciliation as an alternative way to resolve workplace disputes.’

Recourse to employment tribunals has plummeted since the fees were introduced. In November last year, the Trades Union Congress published figures showing that the number of claims brought is down by an average of 9,000 a month.

Last year the Commons justice committee added its voice to calls for a 'substantial' cut in fees. In an initial submission to the review in late-2015, the Law Society called for a new system whereby claims would be dealt with flexibly based on their complexity and the financial stakes involved. In turn, Chancery Lane argued, the savings would enable the fees to be scrapped altogether. 

The ministry’s review today states 'there is no conclusive evidence that ET fees have prevented people from bringing claims’ and describes the higher numbers turning to ACAS is a ’positive outcome’.

Heald said this indicated that the current system is ’generally working effectively and is operating lawfully’.

Ther Moj will consult however on proposals to extend support to people on low incomes through its ‘Help with Fees’ scheme, concerning which Heald said there is a 'general lack of awareness'. 

Under the proposals, people earning £1,250 a month would be exempt from fees, up from £1,085 now. Heald said the new threshold is broadly the equivalent of someone earning the national living wage. There will be additional allowances for people living as couples and those with children.

The ministry will ‘bring forward’ further measures to improve legal support in a green paper by early 2018 and the Prison and Courts bill, Heald said. 

The extended scheme will benefit women, people from black and minority ethnic backgrounds, disabled and younger people, who all feature disproportionately among low income groups, he argued.

Fees will be remitted for certain proceedings related to payments made from the National Insurance Fund.

The proposals will also apply to those bringing proceedings in the civil and family courts, and most other tribunals.

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Government snubs calls for hefty cut in tribunal fees