Joint Committee on Statutory Instruments First Report


Memorandum by the Lord Chancellor's Department


  1. The Lord Chancellor's Department submits this memorandum in response to the request dated 3 November 1999 on the point set out below.

  Explain the reasons for the substantial increases—

  (a)  in the fee payable on the first application for the appointment of a receiver (from £100 to £200: rule 9(a)(ii);

  (b)  in relation to Fee No 2 and 6 (Tables 1 and 2 in the Appendix) as substituted by rule 9(d)) where the income does not exceed £1000.

  2. The revised fee payable on the first application for a receiver, Rule 9(a)(ii), represents the amalgamation of the old fee payable on the first application for a receiver (£1000 set in 1994) and the annual administration fee previously payable from the date of the application to the date of appointment of a receiver. This latter fee was for an indeterminable period of time subject to the particular circumstances of the case but often this would be in excess of two months. The new fee is more cost effective to operate and gives more certainty over estimating annual income.

  3. The increase in Fee No 2 and 6 (Tables 1 and 2 in the Appendix) is to equate more realistically the initial band fee payable by a patient for the core work done in their case. The fee has not changed since 1994. The initial band fee is now based on income up to £2,000 (instead of £1,000). Since the total fee income is set in line with total costs the effect of this change is to lessen the cross-subsidy from higher income earning cases. Where the increase might cause hardship to the patient or his dependants or the circumstances are otherwise exceptional the Public Trustee is able to remit fees under Rule 86.

5 November 1999

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