The Act Schedule 10: Parental compensation orders
362.Paragraph 2 inserts into the Crime and Disorder Act 1998 new sections 13A to 13E which provide power for magistrates’ courts in England and Wales to make parental compensation orders (“PCOs”) on application by a local authority.
363.New section 13A: Parental compensation orders. This provides that the magistrates’ court will be able to make a PCO where it is satisfied to the civil standard of proof that a child under the age of 10 has taken or caused loss or damage to property in the course of behaving anti-socially or committing an act that would have been criminal if he were 10 or over (subsection (2)) and where making the order would be desirable in the interests of preventing a repetition of the behaviour in question (subsection (1)). The order will require the child’s parent(s) or guardian(s) (other than a local authority) to pay compensation to any person or persons affected by the taking of the property or by its loss or damage.
364.“Parent” is defined in part 1 of the Family Law Reform Act 1987 and includes either of the natural parents whether or not they were or are married to each other. The definition of “guardian” is from the Children and Young Persons Act 1933: any person who has for the time being the care of the child. Courts cannot make a local authority subject to PCO.
365.The Secretary of State will be able to vary by order the maximum amount of compensation that a parent or guardian can be required to pay which is currently set at £5,000 (subsections (4) & (5)). The court will have the same powers to enforce a PCO as it does to enforce a sum ordered to be paid on conviction such as a fine (subsection (6)).
366.New section 13B: Parental compensation orders. This new section allows the court to specify how the compensation is to be paid (this can be by instalment) and sets out factors the court must take into account when deciding the level of compensation. These include any compensation the parent or guardian has paid on a voluntary basis, any reparation the child has completed and the parents’ or guardians’ means. The court will be able to order parents or guardians to provide a statement of their financial circumstances and failure to comply will be an offence, as will knowingly making a false statement. Both offences are punishable with a fine.
367.New section 13C: Parental compensation orders: supplemental. This provides that before making a PCO in favour of a person the court must take his or her views into account and consider the child’s family circumstances and the likely effect of the order. Subsection (3) requires the court to explain the effect of the order, the consequences of failing to comply and that the court may review it on the application of the parents, guardians or local authority. The court can vary or discharge the order.
368.New section 13D: Parental compensation orders: appeal. This new section allows parents or guardians to appeal to the Crown Court against the PCO or the amount of compensation.
369.New section 13E: Effect of parental compensation order on subsequent award of damages in civil proceedings. This new section specifies that if a person who has had a PCO made in his favour brings civil proceedings his claim will be assessed without regard to the PCO but the amount of compensation paid under the PCO will be deducted from the amount of damages recovered.
370.Paragraph 3 amends section 8 of the 1998 Act so that a parenting order can be made in the same proceedings as a PCO. Part 2 of Schedule 10 makes equivalent provisions for PCOs in Northern Ireland.