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My noble friend Lady Massey asked about intergovernmental working. I am glad to be able to tell her that to bring about further improvements following the Green Paper in 2005, we created a new policy team in my department to work closely with the Home Office, the Department for Work and Pensions, the Youth Justice Board and the Learning and Skills Council on reviewing provision. There is now an inter-ministerial group on reducing reoffending, including representation from the Department for Communities and Local Government. In our recent Next Steps document, which was published last December and which I circulated to noble Lords before the debate, we have encouraged children’s trusts, local authorities

8 May 2007 : Column 1354

and the new local partnerships to develop vocational education for 14 to 19 year-olds and to pay greater attention to education services for young offenders. Many local authorities had, in fact, already set their own targets. Kensington and Chelsea, for example, is focusing on the percentage of 16 to 18 year-olds leaving custody who then participate in full-time education, training or employment. We would like more local authorities to follow that lead.

We are now in the middle of a public consultation on the Next Steps document, which runs until 4 July. It covers all young people in England aged between 10 and 17 who are supervised by the youth justice system, both in custody and in the community, with a particular focus on offenders of compulsory school age. It includes consideration of all three types of secure establishment: young offender institutions, secure training centres, and secure children’s homes. Responses to our consultation will play a key role in how we prioritise the issues and develop policy, and the Government are encouraged by the input from many working in the youth justice and voluntary sectors. In reply to the direct question asked by my noble friend Lady Massey, I can tell her that we are committed to publishing further plans by the end of this year in response to that consultation.

I shall briefly highlight four key areas covered by the Next Steps document, which are of direct relevance to today’s debate. First, we are exploring ways of ensuring that custodial regimes are organised to best promote participation in education. For some young people, the structured environment of a custodial institution is conducive to education. For others with poor memories of school, however, other incentives are needed to engage them in learning. In particular, we recognise the high incidence of special educational needs among young offenders. Issues under consideration include the prompt sharing of information from existing SEN statements, and ensuring that the additional support identified in those statements is provided in youth custody.

Secondly, as the noble Lord, Lord Lucas, rightly highlighted, we need a curriculum that is well suited to the needs of young offenders. Programmes should make teaching basic literacy and numeracy a priority, but they must also go on to equip young people with wider skills—including PSHE, social skills, and relationship skills, which the noble Earl, Lord Listowel, mentioned—which young people need both to apply for jobs and to become better citizens when they leave their custodial settings. This means identifying the means to provide consistent learning programmes across the secure estate, as transfers between establishments are sometimes unavoidable, and spanning the period before and after custody. It also requires the recognition that many young offenders in custody do not respond well to a traditional classroom environment. We are therefore considering how the current reforms to the 14-to-19 curriculum, including the introduction of new vocational diplomas, can be applied to young offenders. The transition from custody back to community is an especially critical point for young people. The supervision and support provided in custody must

8 May 2007 : Column 1355

continue on release. This requires planning for education, training or employment early in a young person’s sentence.

The third area to highlight is workforce development, rightly mentioned by the noble Lord, Lord Dholakia, the noble Earl, Lord Listowel, and my noble friend Lady Gibson. A set of questions and points were raised in the contributions and I will respond to them in writing. Suffice it to say that we recognise the need for considerably greater attention to workforce development in this area.

The fourth area that we are examining is the accountability framework for custodial education. During the Committee stage of the Education and Inspections Bill, some noble Lords argued that local authorities should have greater responsibility in this area; we are looking at this issue.

I hope I have been able to demonstrate the extreme seriousness with which we and the Youth Justice Board take this issue. When we say “every child matters”, that includes every child in custody. We will continue to improve the educational welfare of young offenders. We are very grateful for all the comments made in today’s debate; I hope that they will help us to forge better policy in this area.

Legal Services Bill [HL]

8.25 pm

Further consideration of amendments on Report resumed on Schedule 16.

[Amendment No. 446ZA not moved.]

The Parliamentary Under-Secretary of State, Department for Constitutional Affairs (Baroness Ashton of Upholland) moved Amendments Nos. 446A to 467:

Schedule 16, page 226, line 21, at end insert “or other financial institutions”

Schedule 16, page 227, line 4, at end insert—

“( ) In subsection (2), omit from “and the rules” to the end.”

Schedule 16, page 227, line 9, leave out from “of” to end of line 10 and insert “—

(a) the solicitor’s clients, other persons or trusts, generally, or(b) that client, person or trust, separately.””

Schedule 16, page 227, line 41, after first “solicitor” insert “, or an account of another person,”

Schedule 16, page 228, line 4, at end insert “or an account of another person”

Schedule 16, page 228, line 10, leave out paragraph 33 and insert—

“ For section 36 (compensation fund) substitute—

“36 Compensation grants

(1) The Society may make rules concerning the grant of compensation by the Society in respect of loss that a person has suffered, or is likely to suffer, as a result of—

(a) an act or omission of a solicitor or former solicitor;(b) an act or omission of an employee or former employee of a solicitor or former solicitor;(c) the exercise by the Society of any of its powers under Part 2 of Schedule 1.

8 May 2007 : Column 1356

(2) The rules may (among other things) make provision—

(a) as to the circumstances in which such grants may and may not be made;(b) as to the form and manner in which a compensation claim is to be made;(c) as to the procedure for determining compensation claims;(d) for the making of grants in respect of a compensation claim before it is finally determined;(e) for a grant to be made by way of loan in such circumstances and on such terms as may be prescribed in, or determined in accordance with, the rules;(f) for a grant to be made by way of making good a deficiency in monies held in trust by the Society under paragraph 6 or 6A of Schedule 1;(g) as to the minimum and maximum grants payable in respect of a compensation claim (or a claim of a prescribed description);(h) for the Society to be subrogated, to such extent as may be prescribed, to any rights and remedies of a person to whom a grant is made in relation to the loss in respect of which the grant is made.

(3) The circumstances which may be prescribed by virtue of subsection (2)(a) include in particular—

(a) the nature of the loss;(b) in a case within subsection (1)(a) or (b), the nature of the act or omission.

(4) For the purposes of subsection (2)(f), there is a deficiency if the monies mentioned in that subsection are insufficient to satisfy the claims of all persons with a beneficial interest in the monies.

(5) The Society may prepare and publish guidance as to the criteria it will apply in deciding whether to make a grant in respect of a compensation claim, or any part of a compensation claim.

(6) Where the Society decides—

(a) not to make a grant in respect of a compensation claim or any part of a compensation claim, or(b) to make a grant of less than the amount claimed,it must give reasons for its decision.

(7) Rules under subsection (1) which are not regulatory arrangements within the meaning of the Legal Services Act 2007 are to be treated as such arrangements for the purposes of that Act.

(8) In this section—

“compensation claim” means a claim for the Society to make a grant of the kind mentioned in subsection (1);“prescribed” means prescribed in rules under subsection (1).

36A Compensation funds

(1) Compensation rules may require or authorise the Society to establish or maintain a fund or funds (“compensation funds”) for the purpose of making grants in respect of compensation claims.

(2) Compensation rules may require solicitors, or solicitors of a description prescribed in the rules, to make contributions to compensation funds of such amounts, at such times and in such circumstances, as may be prescribed in or determined in accordance with the rules.

(3) Any amount payable by virtue of such a requirement may be recovered as a debt due to the Society.

(4) Subsection (2) does not apply to a solicitor who is a Crown Prosecutor.

(5) The Society may invest any money which forms part of a compensation fund in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).

8 May 2007 : Column 1357

(6) The Society may insure with authorised insurers, in relation to compensation funds, for such purposes and on such terms as it considers appropriate.

(7) The Society may, in such circumstances and subject to such conditions as may be prescribed in or determined in accordance with compensation rules—

(a) borrow for the purposes of a compensation fund;(b) charge investments which form part of a compensation fund as security for borrowing by the Society for the purposes of that fund.

(8) A compensation fund may be applied by the Society for the purposes mentioned in subsection (9) (in addition to the making of grants in respect of compensation claims).

(9) The purposes are—

(a) payment of premiums on insurance policies effected under subsection (6);(b) repayment of money borrowed by the Society for the purposes of the fund and payment of interest on any money so borrowed;(c) payment of any other costs, charges or expenses incurred by the Society in establishing, maintaining, protecting administering or applying the fund;(d) payment of any costs, charges or expenses incurred by the Society in exercising its powers under Part 2 of Schedule 1;(e) payment of any costs or damages incurred by the Society, its employees or agents as a result of proceedings against it or them for any act or omission of its or theirs in good faith and in the exercise or purported exercise of such powers.

(10) In this section—

“compensation claim” has the same meaning as in section 36;“compensation fund” has the meaning given by subsection (1);“compensation rules” means rules under section 36(1).””

Schedule 16, page 229, line 18, after “(4A)” insert—

“In relation to an appeal under subsection (3) the High Court may make such order as it thinks fit as to payment of costs.

(4B) ”

Schedule 16, page 229, line 25, leave out “or a registered European lawyer”

Schedule 16, page 229, line 31, leave out “or registered European lawyer”

Schedule 16, page 229, leave out lines 44 and 45

Schedule 16, page 229, line 47, leave out “or registered European lawyer”

Schedule 16, page 230, leave out lines 6 to 13

Schedule 16, page 230, line 17, leave out “or registered European lawyer”

Schedule 16, page 230, line 19, leave out “or registered European lawyer”

Schedule 16, page 230, line 27, after “body” insert “or manager or employee of such a body”

Schedule 16, page 230, line 35, at end insert—

“(2A) The Society may make regulations prescribing charges to be paid to the Society by persons who are the subject of an investigation by the Society as to whether there are grounds for the Society—

(a) to make an order under subsection (2), or(b) to make an application to the Tribunal for it to make such an order.

(2B) Regulations under subsection (2A) may—

(a) make different provision for different cases or purposes;(b) provide for the whole or part of a charge payable under

8 May 2007 : Column 1358

the regulations to be repaid in such circumstances as may be prescribed by the regulations.

(2C) Any charge which a person is required to pay under regulations under subsection (2A) is recoverable by the Society as a debt due to the Society from the person.””

Schedule 16, page 230, line 41, leave out from “body” to end of line 48 and insert “has the same meaning as it has in relation to a body in the Legal Services Act 2007 (see section 197 of that Act);”

Schedule 16, page 231, leave out lines 3 to 6

Schedule 16, page 231, line 13, leave out “paragraph” and insert “section”

Schedule 16, page 231, line 14, leave out “section 71 of the Legal Services Act 2007” and insert “Part 5 of the Legal Services Act 2007 (see sections 71 and 107 of that Act)”

Schedule 16, page 231, line 16, leave out paragraph (a) and insert—

“(a) for subsection (1) substitute—“(1) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(a)—(a) to seek or accept any employment or remuneration from a solicitor in connection with the practice carried on by that solicitor, without previously informing the solicitor of the order;(b) to seek or accept any employment or remuneration from a recognised body, or a manager or employee of a recognised body, in connection with that body’s business, without previously informing the body, or manager or employee, of the order.(1A) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(b) to seek or accept a position as a manager of a recognised body, without previously informing that body of the order.(1B) It is an offence for a person in respect of whom there is in force an order under section 43(2) which contains provision within section 43(2)(c) to seek or accept an interest in a recognised body from any person, without previously informing that person and (if different) the recognised body of the order.(1C) A person guilty of an offence under subsection (1), (1A) or (1B) is liable on summary conviction to a fine not exceeding level 3 on the standard scale.”,”

Schedule 16, page 231, line 28, leave out from “section” to end of line 29 and insert “—

“manager” has the same meaning as in section 43;

“recognised body” means a body recognised under section 9 of the Administration of Justice Act 1985;

and for the purposes of subsection (1B) a person seeks or accepts an interest in a recognised body if the person seeks or accepts an interest which if it were obtained by the person would result in the person having an interest in shares in that body within the meaning of Part 5 of the Legal Services Act 2007 (see sections 71 and 107 of that Act).””

Schedule 16, page 231, line 33, at end insert “, and

(d) after “possession” insert “or under the control”.”

Schedule 16, page 232, line 1, leave out “fee” and insert “charge”

Schedule 16, page 232, line 4, leave out “fee” and insert “charge”

On Question, amendments agreed to.

[Amendment No. 467A not moved.]

Baroness Ashton of Upholland moved Amendments Nos. 468 to 492A:

8 May 2007 : Column 1359

Schedule 16, page 232, line 11, at end insert—

“( ) After that subsection insert—

“(5A) The Tribunal may do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions.””

Schedule 16, page 232, line 43, after “£5,000”,” insert—

“( ) after subsection (3A) insert—“(3B) For the avoidance of doubt, nothing in this section permits the Tribunal to make an order requiring redress to be made in respect of any act or omission of any person.””

Schedule 16, page 233, line 1, at end insert—

“ In section 48 (orders of Tribunal), in subsection (3) for “Subject to section 43(5), any” substitute “Any”.”

Schedule 16, page 233, line 3, at end insert—

“( ) In subsection (2), after “(3)” insert “and to section 43(5) of the Administration of Justice Act 1985”.

( ) In subsection (3) for “legal aid work (within the meaning of that section)” substitute “providing representation funded by the Legal Services Commission as part of the Criminal Defence Service”.”

Schedule 16, page 234, line 1, leave out sub-paragraph (2) and insert—

“(2) In subsection (1)—

(a) in paragraph (a) for “Secretary of State” substitute “Lord Chancellor”,(b) after paragraph (d) insert—“(da) a member of the Legal Services Board nominated by that Board;”, and(c) in paragraph (e) for “Secretary of State” substitute “Lord Chancellor”.”

Schedule 16, page 234, line 4, leave out from “for” to end of line 5 and insert ““(the Secretary of State” to “think fit” substitute “(the Lord Chancellor being one), may make general orders prescribing the general principles to be applied when determining”.”

Schedule 16, page 234, line 6, after “(3)” insert “—

(a) for “Secretary of State” substitute “Lord Chancellor”, and(b) ”

Schedule 16, page 234, line 30, at end insert “, and

( ) for subsection (5) substitute—“(5) A provision in a contentious business agreement that the solicitor shall not be liable for negligence shall be void if the client is a natural person who, in entering that agreement, is acting for purposes which are outside his trade, business or profession.(6) A provision in a contentious business agreement that the solicitor shall be relieved from any responsibility to which he would otherwise be subject as a solicitor shall be void.””

Schedule 16, page 235, line 26, leave out paragraph 58 and insert—

“58 (1) Section 69 (action to recover solicitor’s costs) is amended as follows.

(2) In subsection (1) for “taxed” substitute “assessed”.

(3) For subsection (2) substitute—

“(2) The requirements referred to in subsection (1) are that the bill must be—

(a) signed in accordance with subsection (2A), and(b) delivered in accordance with subsection (2C).

(2A) A bill is signed in accordance with this subsection if it is—

(a) signed by the solicitor or on his behalf by an employee of the solicitor authorised by him to sign, or

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