Ministry of Justice Memorandum on Main Estimate

Ministry of Justice Memorandum on Main Estimate 2013-14 - 1 -

Ministry of Justice Memorandum on Main Estimate 2013-14 Contents Introduction Page Key Activities 3 Estimate provision by budgetary limits 3 Variances from Previous Single Supplementary Estimate 3 Key Points Main priorities and expected outcomes 4-7 Ambit 7 Changes to Departmental Expenditure Limit (DEL) 8-9 Changes to Annually Managed Expenditure (AME) 9 New programmes and changes to existing programmes 10-14 Detailed Breakdown Estimate Line Breakdown 15 Variances to prior year 2011-12 provisions 16 Additional information Budgetary limits previous 3 years, all future years 17 HMCTS Income 18 Private & Public Prisons 19 Provisions 20-22 Contingent liabilities 22 Accounting Officer Approval 23-2 -

Introduction Key activities The Ministry of Justice is responsible for administration of justice in the United Kingdom. Specifically:- Administer law in courts and tribunals (including appointing people to legal offices) Handle those convicted in criminal courts (including imprisonment, parole and probation and young people) Review criminal convictions and revise the laws of England and Wales Act on behalf of people without capacity to act for themselves in legal matters Make provision for people to act as deputies and attorneys for others Inspect other organisations in the justice system Address complaints and concerns about bodies in the legal system Concern themselves with stopping people getting into crime (including young people) Estimate provision by budgetary limits m Resource Departmental Expenditure Limit (RDEL) 7,778.995 Of which: Voted Resource DEL 7,640.795 Non-Voted Resource DEL 138.200 And of which: Administration Budget - includes ring-fenced depreciation 36.902m 607.459 Programme Budget - includes ring-fenced depreciation 526.000m and non voted 138.200m 7,171.536 Capital Departmental Expenditure Limit (CDEL) 276.500 Resource Annually Managed Expenditure Limit (RAME) 71.400 Net cash Requirement (NCR) 7,355.823 Variances from previous financial year provision in the published Single Supplementary Estimate 2012-13 RDEL provision has decreased by 851.089m, this is due to reserve claims in 2012-13 in relation to pre-tariff cases of 90m within the Criminal Injuries Compensation Authority and 159m for other pressures, together with the reduction of 42.700m for Pay restraint announced in the Autumn Statement 2011, 73.803m additional budget reduction announced in the Autumn Statement 2012 and 72.960m additional budget reduction announced in the Budget 2013. These reductions are in addition to the overall reduction in the Ministry s budget as part of the SR10 settlement. CDEL provision has decreased by 14m mainly due to a 2m transfer to HM Revenue and Customs in relation to the Tribunals, Courts and Enforcement Act 2007 and again to an overall reduction in the Ministry s budget as part of the SR10 settlement. RAME provision has decreased by 765.826m mainly due to additional release of provisions with CICA in relation to pre tariff cases in 2012-13 of 90m, offset by - 3 -

impairments on the NOMS and HMCTS estates recorded in 2012-13 of 590m and an additional provision of 200m in relation to the Judicial Long Service Award. New areas of income and expenditure There are no new significant areas of income and expenditure within the Ministry. Key Points Main priorities and expected outcomes The Ministry of Justice plays an integral part in the administration of justice in the United Kingdom. The Ministry works closely with the Home Office and the Crown Prosecution Service to ensure an effective running of the criminal justice system. Departmental budgets exclude planned expenditure for certain items which will only be drawn if needed in year, so totals are subject to change The Ministry is broken down into five business Groups Justice Policy Group HM Courts and Tribunals Service National Offender Management Service Legal Aid Agency Corporate Performance Group The key priorities for each business group are: Justice Policy Group (Budget 456.462m) The key priorities for the Justice Policy Group are: Continuing the focus on reforming rehabilitation, through promoting payment by results, reforming probation, and expanding work within prison; Reforming sentencing and penalties, through completion of the Legal Aid, Sentencing and Punishment of Offenders (LASPO) Bill, publishing a restorative justice framework, and responding to public views on reforming community sentences; Introducing policies for reform of the wider justice system, by making the criminal justice system more accessible and transparent, and reforming civil, administrative and family justice; Implementing measures which will reform legal aid so that it continues to provide support for those who need it while making the system work more efficiently; - 4 -

Assuring better law, protecting civil liberties, and safeguarding human rights, including through negotiating a number of civil and criminal proposals at European level, delivering reform of the European Court of Human Rights, responding to the Commission on a UK Bill of Human Rights and supporting the development of Justice overseas; Developing and implementing information rights and policy, including extending the Freedom of Information Act and ensuring that the proposed new EU Data Protection framework reflects UK interests. HM Courts and Tribunals Service (Budget 1,015.414m) Provide the supporting administration for a fair and efficient courts and tribunal system; Support an independent judiciary in the administration of justice; Drive continuous improvement of performance and efficiency across all aspects of the administration of the courts and tribunals; Collaborate effectively with other justice organisations and agencies, including the legal professions, to improve access to justice; and Work with government departments and agencies to improve the quality of their decision making in order to reduce the number of cases coming before the courts and tribunals. Legal Aid Agency (Budget 1,925.200m) The Legal Aid Agency (LAA), which replaces the Legal Services Commission as part of the changes within the Legal Aid, Sentencing and Punishment of Offenders Act 2012, is responsible for the commissioning and administration of Legal Aid in England and Wales. The LAA provides legal aid, advice and information in England and Wales through two schemes: the Community Legal Service (CLS) and the Criminal Defence Service (CDS). The LAA s organisational purpose is to deliver legal aid efficiently and effectively as part of the justice system. The LAA s objectives for 2013-14 are three-fold: 1. Improve casework to reduce cost, enhance control and give better customer service; 2. Improve organisational capability to meet the challenges ahead, including developing and engaging our people; 3. Build and maintain strong partnerships to secure quality provision and contribute fully to wider justice and Government aims. - 5 -

National Offender Management Service (Budget 3,383.523m) The NOMS Agency Board has agreed a clear vision for the delivery of offender management both in the community and in custody in 2013-14. The Agency s work in 2013-14 is focussed on maintaining business performance whilst delivering two key Government priorities: Transforming Rehabilitation the implementation of wide-ranging reform to Probation and offender management services in the community; and Reducing the cost of prison - by closing uneconomic places/capacity; driving through the competition benchmark; testing services in the market and developing new efficient ways of working whilst maintaining safety, decency, security and order. Corporate Performance Group (Budget 827.212m) The Corporate Performance Group brings together in a single group the key crosscutting corporate functions which provide the support and challenge to help the MoJ deliver its objectives. As one of the largest Departments in Whitehall, the MoJ needs to ensure that it provides this support in the most cost-effective way; therefore CPG will continuously review the services which it provides to ensure that unnecessary duplication is avoided. It continues to keep under review the way that corporate services are delivered to the business, to make sure this is always being done in the most effective way. The MoJ continues to broaden the use of the Shared Service delivery model across corporate services to drive efficiency, improve administrative processes with the aim of always providing a level of service which meets the needs and expectations of CPG s customers. The group is structured around ten key areas: Information & Communications Technology, Finance, Strategic Estates, Procurement, Human Resources, Communications & Information, Internal Audit & Assurance, Shared Services, Legal Services and Analytical Services. It is also responsible for providing support to the Departmental Board and leading the work on Transforming Justice across the MoJ. The group provides support to the MoJ in the following ways: Setting corporate strategy and standards and challenging performance on behalf of the Departmental Board CPG supports the Board in the governance and leadership of the MoJ. Providing corporate shared services such as transactional HR and accounting services, contract management, estate management and ICT services. Providing specialist advice CPG provides advice and support in areas where specialist expertise and professionalism is required for example centres of - 6 -

excellence for project management, advice on HR issues, support with risk management, Providing high quality analytical & legal services to other areas of the MoJ to enable the development of clear evidence based policy, the drafting of primary and secondary legislation, and to support effective decision making in the justice system. Building the governance, culture and systems within MoJ for effective and efficient knowledge and information management so that the right information is available to the right people at the right time, properly protected where it needs to be and readily available when it does not. For 2013-14 CPG will focus on four key areas. The first three are focused on driving change across the wider-moj, with the fourth focused on how CPG can further improve its capability and effectiveness in supporting the MoJ: 1) Providing high quality, value for money support to the Ministry 2) Transforming the way we and the wider MoJ deliver to our users, through challenging existing approaches and developing improved solutions 3) Driving efficiency - including realising the benefits of cross-moj Shared Services, Estates and ICT Strategies 4) Building the capability and engagement of people working across the MoJ Ambit The expenditure and income ambits have been changed to reflect any new functions of the Ministry of Justice. - 7 -

Changes to Resource DEL since Main estimate 2012-13 Admin Programme Total RDEL Of Which Fiscal RDEL Of Which Non Fiscal RDEL m m m m m Spending Review Settlement for 2013-14 as revised 607.459 7,325.246 7,932.705 7,369.803 562.902 Changes in Supplementary Estimate 2012-13 Budget Changes per HM Treasury Additional Budget Reductions per Autumn Statement 2012 0.000 (73.803) (73.803) (73.803) 0.000 Revised MOJ Settlement for 2013-14 607.459 7,251.443 7,858.902 7,296.000 562.902 Changes in Main Estimate 2013-14: Net transfers to Department for Business, Innovation and Skills in relation to education costs in prisons 0.000 (21.047) (21.047) (21.047) 0.000 Transfer from Department of Health in relation to Ministerial Council on Deaths in Custody 0.000 0.100 0.100 0.100 0.000 Transfer from Home Office (UKBA) in relation to Immigration and Asylum Tribunals 0.000 14.000 14.000 14.000 0.000 Additional Budget Reductions per Budget 2013 0.000 (72.960) (72.960) (72.960) 0.000 Total Net Changes 0.000 (79.907) (79.907) (79.907) 0.000 Main Estimate 2013-14 607.459 7,171.536 7,778.995 7,216.093 562.902 Of Which Voted 607.459 7,033.336 7,640.795 7,077.893 562.902 Non Voted 0.000 138.200 138.200 138.200 0.000-8 -

Changes to Capital DEL since Main Estimate 2012-13 Total CDEL m Spending Review Settlement for 2013-14 278.500 Transfer to HMRC in relation to Tribunals, Courts and Enforcement Act 2007 (2.000) Main estimate 2013-14 276.500 Changes to Resource AME since Main estimate 2012-13 Total RAME m Spending Review Settlement for 2013-14 a 0 Negotiated Settlement 71.400 No changes in Main or Supplementary Estimates 2011-12 0.000 Main estimate 2013-14 71.400 a) No formal delegation was made in the SR10 settlement in relation to RAME. The MoJ subsequently negotiated the opening balance as per the Main estimate 2011-12 and for subsequent years. New programmes and changes to existing programmes The Ministry of Justice has provision for net programme expenditure of 7,033.336m. This includes programmes administered by HM Courts and Tribunals Service with a budget of 1,121.614m, by NOMS with a budget of 3,261.353m, the Legal Aid Agency with a budget of 1,828.000m and the Youth Justice Board with a budget of 295.704m. Details of the most important programmes and what they are designed to achieve are set out below. - 9 -

Legal Aid Agency - Legal Aid Fund 1,828.000 million programme resource expenditure The LAA is implementing an ambitious and far reaching portfolio of change programmes that will improve the efficiency and effectiveness of the LAA, so that it can deliver more for less. The Change Portfolio comprises three main programmes: Legal Aid Transition. Initiation of a programme which will look at implementing changes to the Crime competition model, as well as introducing Criminal and Civil Legal Aid fees and eligibility reductions. Integrated Delivery. Moving to on-line working with providers and launching a new IT system that will grant civil legal aid, pay bills and recover debt electronically. Organisational Design. This is a programme of work designed to ensure that the LAA has the staffing structure in place to meet the needs of the organisation in the future. Additionally, the LAA will continue transitional work on two previous change programmes, as follows: Executive Agency Transition. On the 1 April 2013, the Legal Services Commission was abolished and replaced by the Legal Aid Agency. Work will continue during 2013/14 to ensure the outstanding issues in relation to transition are completed and that proposed benefits are delivered. Legal Aid Reform. Implementing the changes following the conclusion of parliamentary consideration the Legal Aid, Sentencing and Punishment of Offenders Bill. The second phase of measures, removing certain categories of Civil Legal Aid from scope, came into force from 1 April 2013. Youth Justice Board 295.704 million programme resource expenditure The Youth Justice Board (YJB) is an executive NDPB created by the Crime and Disorder Act 1998 that oversees the youth justice system for England and Wales. The YJB is committed to promoting engagement in education and training as a key objective for the youth justice system. The youth justice system in England and Wales is made up of a network of organisations that work together to administer justice and help children and young people live free from crime and anti-social behaviour. This network consists of: the YJB; 155 youth offending teams; these are local statutory partnerships made up of partners from the police, probation, children s services and health; Police and the Crown Prosecution Service; Courts and the judiciary; and - 10 -

Secure accommodation providers young offender institutions, secure training centres and secure children s homes. Specifically, the YJB: Advises the Secretaries of State on the operation of, and standards for, the youth justice system; Monitors the performance of the youth justice system; Purchases places for, and place, children and young people remanded or sentenced to custody; Identifies and promotes effective practice; Makes grants to local authorities or other bodies to support the development of effective practice; and Commissions research and publish information. National Offender Management Service 3,261.353 million programme resource expenditure and 38.000 million capital expenditure NOMS is an executive agency of the Ministry of Justice, responsible on behalf of the Secretary of State for Justice for commissioning and delivering prison and probation services in England and Wales. NOMS are committed to protecting the public and reducing reoffending. We deliver our offender services through: Probation Trusts 35 trusts responsible for the delivery of probation services at local level; Public sector prisons 110 prisons which provide around 85 per cent of prison places; Private sector providers operating 14 prisons under contract and providing other significant services including prisoner escorts and electronic monitoring of offenders; and Partnerships with a range of public and third sector partners, including police, local authorities, health and education providers, and with a wide range of organisations in the voluntary and social enterprise sector. The Agency is also contracted by the Youth Justice Board to provide custodial places for young people (under 18) and by the UK Border Agency to provide over 860 places at three Immigration Removal Centres. Following a fundamental reorganisation in 2010-11, our structure provides clarity and accountability for the different functions of the Agency. Specifically: - 11 -

Management of Public Sector Prisons; Contract Management of Probation Trusts and Major Contracts; Provision of operational services to the whole sector; Commissioning and co-commissioning of Offender Services; and Providing support for service delivery through Finance, ICT and HR. NOMS is building on the work it has completed in 2012-13 to meet Ministerial objectives and the Government s reform agenda, the Agency s key priorities are set out above. As the largest Agency of the Ministry of Justice the scale of NOMS contribution towards meeting the reform agenda is significant. HM Courts and Tribunals Service 983.414 million programme resource expenditure Aim HM Courts & Tribunals Service is an agency of the Ministry of Justice and was established on 1 April 2011. It operates on the basis of a partnership between the Lord Chancellor, the Lord Chief Justice and the Senior President of Tribunals. We provide the system of support for the administration of the business of the courts in England and Wales and those tribunals for which the Lord Chancellor is responsible across England, Wales, Scotland and Northern Ireland. We play a fundamental role in the wider Ministry of Justice s vision and objectives. We are at the forefront of the Transforming Justice agenda and of delivering the department's key priorities particularly around rationalisation and reform of the court estate and wider criminal justice system; and additionally, delivering front-line services which are transparent, accountable and provided at a lower cost. To run an efficient and effective courts and tribunals system, which enables the rule of law to be upheld, and provides access to justice for all. Objectives HM Courts & Tribunals Service s (HMCTS) business objectives and priorities are for the four year period covered by the Government s 2010 Spending Review. Provide the supporting administration for a fair and efficient courts and tribunal system. Support an independent judiciary in the administration of justice. Drive continuous improvement of performance and efficiency across all aspects of the administration of the courts and tribunals. Collaborate effectively with other justice organisations and agencies, including the legal professions, to improve access to justice. - 12 -

Work with government departments and agencies to improve the quality of their decision making in order to reduce the number of cases coming before courts and tribunals. Business Priorities Establish our long term vision Increase efficiency and reduce cost Work with justice system partners to increase performance More detail on HMCTS s business priorities can be found in the 2013-14 HMCTS Business Plan which is published on the Justice website. Criminal Injuries Compensation Authority 157.815 million programme resource expenditure The Criminal Injuries Compensation Authority is classed as a Non-Departmental Public Body sponsored by the MoJ, and is responsible for administering the Criminal Injuries Compensation Scheme throughout England, Scotland and Wales. The Scheme provides compensation to blameless victims of violent crime. A compensation scheme was first introduced in 1964, where awards were set according to that which the victim would have received in a successful civil action against the offender. Following primary legislation in 1995, a new tariff based Scheme was brought into force in April 1996. This Scheme included a table (the Tariff) which assigned a fixed amount of compensation to each specified injury. The Scheme also made provision for additional payments in relation to loss of earnings and special expenses - up to a maximum award of 500,000 to cover all heads of claim. Revisions to the Tariff Scheme were made in April 2001 and October 2008. There are two main types of compensation personal and fatal injury awards. Each year CICA receives up to 65,000 applications for compensation and spends over 150 million in compensation payments. The Authority's aim is provide an efficient and fair service to blameless victims of violent crime. In order to achieve this, the Authority will: Process applications as quickly as possible whilst investigating claims fairly; Treat applicants with sensitivity and courtesy at all times; Help people understand the service we provide and keep applicants informed; Support our staff to perform to their full potential; and Be accountable for the service we provide and the public funds we spend. Parole Board 9.063 million programme resource expenditure The Parole Board is an independent body that works with its criminal justice partners to protect the public by risk assessing prisoners to decide whether they can be safely released into the community. - 13 -

Key aims for the Parole Board are as follows: Make risk assessments which are rigorous, fair and timely with the primary aim of protecting the public and which contribute to the rehabilitation of prisoners where appropriate; Demonstrate effective and accountable corporate governance by maintaining strong internal control, setting clear objectives and managing corporate risk and to deliver best value by optimum use of resources; and Promote the independence of and confidence in the work of the Board, while effectively managing change. Office of the Public Guardian (4.043) million programme resource expenditure and 6.051 million capital expenditure) The Office of the Public Guardian (OPG) is an executive agency of the MoJ that supports and promotes decision making for those who lack capacity or would like to plan for their future, within the framework of the Mental Capacity Act 2005. The OPG has five key objectives for 2013-14, which will aid the continued improvements in the delivery of service. These are to: Deliver an excellent service to attorneys, deputies and those they represent; Change the way that services are delivered to customers; Create a customer-focussed, skilled and motivated workforce; Improve the mechanisms for developing knowledge of customers; and Develop effective relationships with partner organisations. In order to drive and meet higher levels of demand, OPG will re-examine all aspects of operations, including capacity, capability, process, estate and technology through a programme of work to transform the way OPG services are delivered. OPG s defined transformation programme will build on the successful changes implemented in 2012-13 and continue to develop and deliver a strategically-aligned, structured and achievable programme of work that will realise a new business model over the course of 2013-14. - 14 -

Detailed Breakdown Estimate Line Breakdown of Main Estimate 2013-14 Spending in DEL Voted and Non voted Expenditure Following changes in the Main and Single Supplementary Estimate 2012-13, the Ministry of Justice s allocation for 2013-14 was an overall RDEL budget amount of 7,858.902m which included ring-fenced depreciation 562.902m. Changes in the Main Estimate 2013-14 have resulted in a decrease in overall RDEL budget of 79.907m to 7,778,995; with no change in ring-fenced depreciation. The changes are as detailed below. Budget Cover Transfers (6.947)m An amount of 14.000m has been transferred from the Home Office to Ministry of Justice in respect of Asylum and Immigration Tribunals. An amount of 0.100m has been transferred from the Home Office to Ministry of Justice in respect of funding for death in custody. An amount of (21.047)m has been transferred to Department for Business Innovation and Skills (DBIS) in relation to education costs for prisoners. HM Treasury Imposed Reduction (72.960)m As a result of announcements by the Chancellor of the Exchequer in the Budget 2013, The Ministry s budget was further reduced by (72.960)m in the Main Estimate 2013-14. - 15 -

Variances to 2012-13 Provisions 000 2013-14 RDEL Plans 2012-13 RDEL Provisions Variance RDEL 2013-14 CDEL Plans 2012-13 CDEL Provisions Variance CDEL A Policy, Corporate Services and Associated Offices 763,900 898,512 (134,612) 211,549 163,717 47,832 B Central Funds 50,000 87,500 (37,500) 0 0 0 National Offender Management C Service 3,383,523 3,554,480 (170,957) 38,000 29,500 8,500 HM Courts and D Tribunals Service 1,015,414 1,209,796 (194,382) 0 71,000 (71,000) Office of the Public E Guardian (4,043) (2,576) (1,467) 6,051 510 5,541 Youth Justice F Board 310,500 329,764 (19,264) 0 4,000 (4,000) Criminal Injuries Compensation G Authority (net) 172,700 298,134 (125,434) 900 600 300 H Parole Board (net) 10,200 11,593 (1,393) 0 0 0 I J K L M N O Criminal Cases Review Commission (net) 5,340 5,347 (7) 0 43 (43) Judicial Appointments Commission (net) 4,911 5,220 (309) 0 1,000 (1,000) Information Commissioners Office (net) 3,150 4,463 (1,313) 0 850 (850) Legal Aid Agency - Administration 97,200 * (10,986) 20,000 * 1,350 Legal Aid Agency - Fund : Criminal 941,000 * (80,659) 0 * 0 Legal Aid Agency - Fund : Civil 887,000 * (72,806) 0 * 0 Legal Services Commission - Administration * 108,186 See above * 18,650 See above Legal Aid Fund: Criminal (net) * 1,021,659 See above * 0 See above Legal Aid Fund: Civil (net) * 959,806 See above * 0 See above Office of Legal Complaints 0 0 0 0 600 (600) Legal Services Board 0 0 0 0 30 (30) Higher Judiciary Judicial Salaries 138,200 138,200 0 0 0 0 Total 7,778,995 8,630,084 (851,089) 276,500 290,500 (14,000) * Please note as of 1 April 2013 the Legal Services Commission was replaced by the Legal Aid Agency variance has been provided against the amounts shown against each body for the respective years. - 16 -

Additional Information Budgetary Limits The tables below compare current year plans to the plans and outturn for the previous 3 years and all future year plans within the spending review period. They record outturn as reported in the Resource accounts for 2011-12 and 2010-11. Plans for 2012-13 are as reported in the Spending Review and as modified during the Main and Supplementary Estimate process. Forecast Outturn for 2012-13 is as per period 11 management accounts and is subject to change. Plans for 2013-14 and 2014-15 are as reported in the Spending Review 2010 settlement and as modified by the main and supplementary estimate process and adjusted for reductions made in the Autumn Statement 2011 in relation to public sector pay restraint (2013-14 42.7m, 2014-15 85.3m). In the autumn statement 2012 further reductions were announced of (2013-14 73.803m, 2014-15 140.433m) and in the Budget 2013 further reductions were announced of (2013-14 72.960m, 2014-15 68.620m) Departmental budgets for 2013-14 and beyond exclude planned expenditure for certain items which will only be drawn if needed in year, so totals are subject to change. Resource DEL Year Voted Non-voted Total Plans Outturn Variance Variance m m m m m % 2014-15 7,246,054 139,500 7,385,554 - - - 2013-14 7,640,795 138,200 7,778,995 - - - 2012-13 8,491,884 138.200 8,630.084 8,572.744 57.340 0.66 2011-12 8,800.618 138,200 8,938.818 8,894,981 43,837 0.49 2010-11 5,659,191 3,317,099 8,976,290 8,954.478 21.812 0.24 Resource AME Year Voted Non-voted Total Plans Outturn Variance Variance m m m m m % 2014-15 71.100-71.100 - - - 2013-14 71.400-71.400 - - - 2012-13 837.226-837.226 - - - 2011-12 3.358-3.358 (184,712) 188.070 5600.66 2010-11 560.360 (165.402) 394.958 368.780 26.178 6.63 Capital DEL Year Voted Non-voted Total Plans Outturn Variance Variance 000 000 000 000 000 % 2014-15 301.100-301.100 - - - 2013-14 276.500-276.500 - - - 2012-13 290.500-290.500 - - - 2011-12 378.774-378.774 344.095 43.679 11.26 2010-11 550.110 43.017 593.127 539.022 54.105 9.12-17 -

Her Majesty s Court & Tribunals Service (HMCTS) Income HMCTS income can be split into high-level income streams; fee income and other income. The following table provides a breakdown of HMCTS forecast income for 2013-14 (as at 31 March 2013). m Forecast Fee income 488.000 Other income 77.000 Total 565.000 Fee income HMCTS fees income which relates to non-criminal proceedings is forecast to be 487.8m in 2013-14. HMCTS fees income is derived from civil and family courts, tribunals and the court of protection. These are collected in the high court, county courts and magistrates courts and tribunals. Current fee charges are based on rates set to achieve the HMT requirement for full cost recovery except in family business and tribunals. m Forecast Civil 331.000 Family (including probate) 134.000 Tribunals 18.000 Court of protection 5.000 Total 488.000 Other Income Other income includes recoveries from Other Government Departments, such as HMRC payments from national insurance fund related to Social Security and Child Support tribunals. Other income also includes bailiff fees covering the costs of debt collection enforcement, and service charges to the Legal Aid Agency (formerly the Legal Services Commission) to reimburse for administrative work performing means testing of Legal Aid applicants m Forecast Recovery from Other Government Departments 43.900 Bailiffs Fees 21.900 Legal Aid Agency Service Charge 7.500 Miscellaneous Receipts Income 3.700 Total 77.000-18 -

Private and Public Prisons The Select Committee have previously requested a breakdown of the funding attributable to both Public and Private Prisons within NOMS. The following table sets out the current up to date information. NOMS Split of Funding between Public and Private Prisons m 2009-10 2010-11 2011-12 2012-13 2013-14 Public Prisons 2,046.275 2,029.388 1,912.000 1,790.530 1,660.000 Private Prisons 288.541 303.521 323.000 399.680 402.950 Total 2,334.816 2,332.909 2,235.000 2,190.210 2,062.950 2009-10 numbers reflect a full year outturn position (as per NOMS management accounts). 2010-11 numbers reflect a full year outturn position (as per NOMS management accounts). 2011-12 reflects the full year outturn position (as per NOMS management accounts). 2012-13 reflects the forecast outturn for the year as at February 2013 (as per NOMS management accounts). 2013-14 reflects the opening budgets. Note on comparability of figures The figures have been produced on as comparable a basis as possible, so they include all public and high security prisons against public prisons, plus area based services, HQ and regional-based units. The Private Prisons figure for 2012-13 includes Oakwood, Birmingham full-year effect & Thameside. The Private Prisons figure for 2013-14 includes Wolds (which will transfer to the public sector during 2013-14, whilst the public sector figures include those prisons that will fall under private sector management during the year. i.e. Northumberland, Moorland/Hatfield and Lindholme. The 2013-14 budget excludes certain budgets that will be added during the course of the year (prison industries, contractors escorts and education), totalling around 40m. Income received from the YJB in respect of expenditure by Youth Offender Institutes (YOI s) accommodating 15-17 year-old young offenders has been included, so these budgets in both public and private sector prisons are shown net of income. The three Immigration Removal Centres (Dover, Haslar & Morton Hall) are included under public prisons and are shown as net of UK Border Agency (UKBA) Income. Note on future years data It is not possible to provide a split of Public and Private Prison spend for future years over the Spending Review period as this will depend on the programme of prison competitions currently underway. - 19 -

Provisions for Liabilities and Charges SUMMARY Pension Transfer Deficit Judicial Long Service Awards Early Retirement Costs Costs from Central Funds Leasehold Property dilapidations Miscarriages of Justice Legal Cases Legal Claims CICA Pre- Tariff Scheme CICA Tariff Scheme LAA Outstanding balance on funded cases By Analogy Pension Scheme Other Provisions Total Provisions m m m m m m m m m m m m m m Balance as at 1st April 2012 Previously declared 341.719 123.766 181.156 54.877 42.843 7.775 0.455 57.746 0 0 0 7.210 15.601 780.518 Adjustments to opening balance following audit (159.255) 0 (44.796) 0 (7.767) 0.001 0 (12.155) 0 0 0 (3.198) 2.043 (225.128) Adjustments to include balances as a result of Clear line of Sight Project 0 0 0.858 0 0 0 0 0 147.817 383.620 650.402 0.220 3.125 1,186.042 Revised Balance as at 1st April 2012 182.464 123.776 137.218 54.877 35.076 7.776 0.455 45.591 147.817 383.620 650.402 4.232 20.769 1,794.073 Extra Provision during year 0 200,000 0.096 0 0 0.482 0 15.000 0 200.000 1,998.631 0 0.019 2,414.228 Unwinding of Discount 0 0 3.321 0 0 0 0 0 0 0 0 0 0 3.321 Interest on pension transfer deficit 13.079 0 0 0 0 0 0 0 0 0 0 0 0 13.079 Provision not required written back 0 0 (0.616) (1.000) 0 0 (0.148) 0 0 0 0 0 0 (1.764) Utilisation (17.333) (10.521) (12.091) (1.107) 0 (0.854) (0.237) 0 (120.000) (200.000) (1,966.465) (0.083) (0.379) 2,329.070 Forecast Balance as at 31st March 2013 178.210 313.255 127.928 52.770 35.076 7.404 0.070 60.591 27.817 383.620 682.568 4.149 20.409 1,893.867-20 -

Ministry of Justice Memorandum on Main Estimate 2012-13 Please note the table above includes the estimated provision position as at 31 March 2013. This will be updated as part of the preparation of the MoJ s Resource Accounts for 2012-13 and an updated position will be provided in the Supplementary Estimate. Details of the various provisions are as follows:- Pension Transfer Deficit The provision relates to the liability arising from the transfer of pension arrangements of the former Magistrates Courts Committees staff from their previous pension providers, the Local Government Pension Scheme (LGPS), to the Principal Civil service Pension Scheme (PCSPS). The Liability arising due to the shortfall in the funding of the LGPS has been estimated by the Government Actuary s Department (GAD). The scheme is revalued on a yearly basis by GAD and this may result in large movements in the outstanding balance, up or down, due to the prevailing economic position. A payment of 17.333m has so far been made in 2012-13 year (full year estimate 25m) (2011-12 26.2m) to the PCSPS as part settlement of the estimated deficit. During the current year, the Cabinet Office has deemed that interest of 13.079m is also payable on the outstanding amount which has lead to a total provision of 178.210m at the end of 2012-13. Judicial Long Service Award The Judicial Service Award was created to equalise the tax position of judicial pensions affected by the provisions of the Finance Act 2004. The liability has been estimated by GAD, taking into account the number of reckonable years served by the existing judiciary and an estimate of the projected final salaries of existing members. The result was discounted to present value using the rate set by HM Treasury of 2.2% (2011-12: 2.2%). The opening liability is based on an actuarial assessment as at 31 March 2012. Early departure costs MoJ meets the additional costs of benefits beyond normal PCSPS benefits for employees who retire early. This involves paying amounts determined by the pension administrator annually to PCSPS over the period between early departure and normal retirement date. MoJ provides for this in full when the early retirement programme becomes binding on MoJ by establishing a provision for the estimated payments discounted at the treasury rate of 2.8% (2011-12: 2.9%) in real terms. Early departures approved in 2012-13 are based formal valuations from the pension administrator. The provision also includes the costs of providing for unfunded early retirement benefits of certain Magistrates Court staff. Costs from Central Funds Under the terms of the Prosecution of Offences Act 1985, acquitted defendants who have privately funded their legal representation, and private prosecutors, may obtain from the Crown Court an order to obtain their costs out of Central Funds. MoJ estimates the value of unbilled costs to arrive at the amount disclosed in the Accounts as a provision. The amount is an estimate of the expenditure required to settle any obligation at the reporting period end date. Individual amounts are also - 21 -

Ministry of Justice Memorandum on Main Estimate 2012-13 provided for exceptionally high value cases. In estimating the provision, MoJ has adopted prudent measurement techniques based on the latest data available. Legal Claims Provision has been made for all known claims where legal advice indicates that it is more likely than not that the claim will be successful and the amount of the claim can be reliably estimated. The figures represent the best estimate of the amount payable. Legal claims which may succeed but are less likely to do so or cannot be estimated reliably are disclosed as contingent liabilities. Provision has been made for outstanding compensation claims in relation to miscarriages of justice. The amount provided for is an estimate of compensation due for all eligible cases that are due to be assessed by the Independent Assessor (Dame Janet Smith). Leasehold Property Dilapidations Dilapidation costs are an estimate of the expenditure required to return vacated leased buildings to their original condition. The movement in year is as a result of updated information relating to property vacations. NOMS is currently in negotiation with the landlord of HMP Lancaster Castle regarding its closure. Until the prison is formally delisted as a prison NOMS will be liable to continue to pay 240k per annum in rent. A dilapidation charge is possible, but as this site has multiple tenants the outcome of these negotiations cannot be assessed with certainty. Other Provisions Other Provisions include a provision in respect by analogy pension schemes in respect of the Law Commission, and a provision of 2m to meet ex gratia payments to victims of overseas terrorism. Contingent Liabilities There has been no change in the list of the contingent liabilities since the 2012-13 Supplementary Estimate Memorandum. - 22 -

Ministry of Justice Memorandum on Main Estimate 2012-13 Accounting Officer Approval The Ministry of Justice Estimates Memorandum has been prepared according to the requirements set out in the guidance manual on supply estimates provided by HM Treasury which reflects the views of the House of Commons Scrutiny Unit. The information in this Estimates memorandum has been approved by me as departmental Accounting Officer. Ursula Brennan Accounting Officer Permanent Secretary Ministry of Justice 16 April 2013-23 -