The monthly round-up of news, guidance, legislation, and case law from Shelter's Specialist Debt Advice Service.
News and legal updates
This month's legal round-up includes details of guidance for insolvency practitioners, increased court fees guidance, updated court processes, Shelter’s response to the MaPS debt advice consultation and more.
Insolvency practitioners to review cases in view of DRO changes
The Insolvency Service has written to insolvency practitioners (IPs) to make them aware of the DRO changes. IPs are asked to consider the impact of these changes and to review cases if necessary by looking at the individuals’ circumstances.
Ministry of Justice publishes response to consultation on increases to court and tribunal fees
The Ministry of Justice (MoJ) has published the response to its consultation on 'Implementing increases to selected court and tribunal fees'.
The government will increase fees by 10% in May 2024. They will also make routine updates to fees to reflect changes in costs and inflation every two years going forward. Key fees for advisers to be aware of include:
application on notice where no other fee is specified / application to set aside a county court judgment – £303 (increased from £275)
application to vary a judgment or order, suspend enforcement or suspend a warrant of possession or stay a High Court writ - £15 (increased from £14)
application to withhold a client’s address from the Individual Insolvency Register - £308 (increased from £280)
Consultation response: implementing increases to selected court and tribunal fees
Schedule 4 of The Court and Tribunal Fees (Miscellaneous Amendments) Order 2024
Mediation to be an integral part of the small claims process
HM Courts and Tribunals Service has reported that mediation will be made compulsory for all parties who issue a claim for less than £10,000. This takes effect from 22 May 2024. The one-hour mediation session will continue to be free of charge.
Requirement for mediation in small claims
Consultation on alternative dispute resolution in light of recent case law
In the case of Churchill v Merthyr Tydfil County Borough Council [2023] EWCA Civ 1416, the Court of Appeal considered whether it has the power to order a stay in proceedings to allow parties to take part in non-court dispute resolution process. Although it refused the application for a stay in this case, it decided that in general it could stay proceedings, as long as this did not threaten the claimant’s right to a fair trial and was proportionate to achieving the aim of settling the dispute fairly, quickly and at reasonable cost.
Following the Churchill case, the Civil Procedure Rule Committee has published a consultation on proposed draft amendments to the Civil Procedure Rules (CPR). In summary, the Committee proposes to add references to alternative dispute resolution (ADR) in the CPR. The aim is to emphasise the importance of ADR in the court process.
The consultation closes on 28 May 2024.
Churchill v Merthyr Tydfil County Borough Council case summary
Shelter’s response to MaPS consultation
Our team has submitted a response to the Money and Pensions Service consultation on its debt advice strategy.
In summary, we are broadly supportive of MaPS taking the opportunity to obtain valuable input from the debt advice sector and the various methods or changes that could be implemented with the goal of improving access, quality and working conditions in the debt advice sector. We do, however, wish to highlight that these additional services should not impact the overall funding made available for essential front-line debt advice.
SDAS response to the MaPS consultation
Enforcement Conduct Board complaints process
The Enforcement Conduct Board have published an update on their work to design the complaints process. They intend to publish the complaints procedure in Autumn 2024 and will start accepting complaints in January 2025.
Enforcement Conduct Board complaints process
FCA publishes data on Mortgage Charter uptake
The FCA has published data on firms who have signed up to the Government’s Mortgage Charter, which was introduced in June 2023 in response to the cost of living crisis. There are 48 signatories, representing around 90% of the mortgage market.
Shelter legal win protects disability benefits for people moving home
An important ruling at the Upper Tribunal held that people with severe disabilities should not face losing benefits just because they move from one type of home to another. Shelter legal adviser Elliot Kent explains what this means for the client and other people in their situation.
Shelter legal win protects disability benefits for people moving home
Institute of Money Advisers newly launched podcast
The IMA has launched its own podcast ‘Debt Reckoning’. To have a listen, the podcast can be found on Spotify, or search for ‘Debt Reckoning’ on a podcast app.
In the first episode, the IMA discusses:
the recently concluded MaPS debt advice strategy consultation
‘Freemen-on-the-Land’, and some recent council tax case law
If you have any questions or comments about Debt Reckoning, or a suggestion for a future episode or guest, you can email the IMA at office@i-m-a.org.uk.
Case law
Find debt case law summaries by topic on Shelter Legal.
Disputes about enforcement fees
A claimant can pursue a dispute about fees against a High Court Enforcement Officer or its agent.
Bone v Williamson [2024] EWCA Civ 4
Guy v Brake: December 2023 update
In July 2023, Mrs Brake's moratorium was cancelled because she was no longer receiving mental health crisis treatment. The Guy parties asked the High Court to decide whether Mrs Brake had been eligible for the mental health crisis moratorium in the first place.
The court decided that there was no longer a need to consider whether Mrs Brake had been eligible for a mental health crisis moratorium.