SCHEDULE 2Remissions, part remissions and refunds

Article 4

Interpretation1

1

In this Schedule—

  • child” means a person—

    1. a

      whose main residence is with a party and who is aged—

      1. i

        under 16 years; or

      2. ii

        16 to 19 years; and is—

        1. aa

          not married or in a civil partnership; and

        2. bb

          enrolled or accepted in full-time education that is not advanced education, or approved training; or

    2. b

      in respect of whom a party or their partner pays child support maintenance or periodic payments in accordance with a maintenance agreement,

    3. c

      and “full-time education”, “advanced education” and “approved training” have the meaning given by regulation 1(3) of the Child Benefit (General) Regulations 20069;

  • child support maintenance” has the meaning given in section 3(6) of the Child Support Act 199110;

  • couple” has the meaning given in section 3(5A) of the Tax Credits Act 200211;

  • disposable capital” has the meaning given in paragraph 4;

  • excluded benefits” means—

    1. a

      any of the following benefits payable under the Social Security Contributions and Benefits Act 199212 or the corresponding provisions of the Social Security Contributions and Benefits (Northern Ireland) Act 199213

      1. i

        attendance allowance;

      2. ii

        severe disablement allowance;

      3. iii

        carer’s allowance;

      4. iv

        disability living allowance;

      5. v

        any payment made out of the social fund;

      6. vi

        any payment from the industrial injuries disablement benefit;

    2. b

      any of the following benefits payable under the Tax Credits Act 2002—

      1. i

        any disabled child element or severely disabled child element of the child tax credit;

      2. ii

        any childcare element, disabled element or severely disabled element of the working tax credit;

    3. c

      any direct payment made under—

      1. i

        the Community Care, Services for Carers and Children’s Services (Direct Payments) (England) Regulations 200914,

      2. ii

        the Social Services and Well-being (Wales) Act 201415,

      3. iii

        the Carers and Direct Payments Act (Northern Ireland) 200216,

      4. iv

        the Social Care (Self–directed Support) (Scotland) Act 201317;

    4. d

      any exceptionally severe disablement allowance paid under the Personal Injuries (Civilians) Scheme 198318;

    5. e

      any pension paid under the Naval, Military and Air Forces etc (Disablement and Death) Service Pensions Order 200619;

    6. f

      any payment made from the Independent Living Funds;

    7. g

      any financial support paid under an agreement for the care of a foster child;

    8. h

      any armed forces independence payment;

    9. i

      any personal independence payment payable under the Welfare Reform Act 201220;

    10. j

      any payment on account of benefit as defined in the Social Security (Payments on Account of Benefit) Regulations 201321;

    11. k

      any of the following amounts, as defined by the Universal Credit Regulations 201322, that make up an award of universal credit—

      1. i

        an additional amount to the child element in respect of a disabled child;

      2. ii

        a housing costs element;

      3. iii

        a childcare costs element;

      4. iv

        a carer element;

      5. v

        a limited capability for work or limited capacity for work and work-related activity element;

    12. l

      any bereavement support payment under section 30 of the Pensions Act 201423 or section 29 of the Pensions Act (Northern Ireland) 201524;

  • family help (higher)” has the meaning given in regulation 15(3) of the Civil Legal Aid (Merits Criteria) Regulations 201325;

  • gross monthly income” has the meaning given in paragraph 12;

  • Independent Living Funds” means the funds listed at regulation 20(2)(b) of the Criminal Legal Aid (Financial Resources) Regulations 201326;

  • legal representation” has the meaning given in regulation 18(2) of the Civil Legal Aid (Merits Criteria) Regulations 2013;

  • maintenance agreement” has the meaning given in section 9(1) of the Child Support Act 1991;

  • partner” means a person with whom the party lives as a couple and includes a person with whom the party is not currently living but from whom the party is not living separate and apart;

  • party” means the individual who would, but for this Schedule, be liable to pay a fee under this Order;

  • restraint order” means—

    1. a

      an order under section 42(1) of the Senior Courts Act 198127;

    2. b

      an order under section 33 of the Employment Tribunals Act 199628;

    3. c

      a civil restraint order made under rule 3.11 of the Civil Procedure Rules 199829, or a practice direction made under that rule; or

    4. d

      a civil restraint order made under rule 4.8 of the Family Procedure Rules 201030, or the practice direction referred to in that rule;

  • “savings and investments” include, but are not limited to—

    1. a

      bonds;

    2. b

      stocks and shares; and

    3. c

      the value of any land or property.

2

References to remission of a fee are to be read as including references to a part remission of a fee as appropriate and remit and remitted are to be construed accordingly.

Fee remission if a party satisfies the disposable capital test2

If a party satisfies the disposable capital test, the amount of any fee remission is determined in accordance with the gross monthly income test set out in paragraph 10.

Disposable capital test3

A party satisfies the disposable capital test—

a

if they or their partner are aged 66 or over and the party’s disposal capital is less than £16,000;

b

in any other case, if the fee payable by the party is—

i

£1,420 or less and the party’s disposable capital is less than £4,250;

ii

more than £1,420, but less than or equal to £5,000 and the party’s disposable capital is less than three times the amount of the fee payable;

iii

more than £5,000 and the party’s disposable capital is less than £16,000.

Disposable capital: general4

Disposable capital is the value of any savings and investments belonging to the party on the date on which the application for remission is made, unless any savings and investments are treated as income under this Schedule or are excluded disposable capital.

Disposable capital: non-monetary savings and investments5

The value of any savings and investments that do not consist of money is calculated as the amount which the savings and investments would realise if sold, less—

a

10% of the sale value; and

b

the amount of any borrowing secured against the savings and investments that would be repayable on sale.

Disposable capital: savings and investments held outside the United Kingdom6

1

Savings and investments in a country outside the United Kingdom count towards disposable capital.

2

If there is no prohibition in that country against the transfer of savings and investments into the United Kingdom, the value of those savings and investments is the amount which they would realise if sold to a buyer in the United Kingdom.

3

If there is a prohibition in that country against the transfer of savings and investments into the United Kingdom, the value of those savings and investments is to be calculated in accordance with paragraph 5 as if they were sold in that country.

Disposable capital: foreign currency7

Where disposable capital is held in currency other than sterling, the cost of any banking charge or commission that would be payable if that amount were converted into sterling is deducted from its value.

Disposable capital: jointly owned savings and investments8

Where any savings and investments are owned jointly or in common, there is a presumption that the savings and investments are owned in equal shares, unless evidence to the contrary is produced.

Excluded disposable capital9

The following are excluded disposable capital—

a

a property which is the main or only dwelling occupied by the party;

b

any vehicle, the sale of which would leave the party, or their partner, without motor transport;

c

the capital value of the party’s or their partner’s business, where the party or their partner is self-employed;

d

the capital value of any funds or other assets held in trust, where the party or their partner is a beneficiary without entitlement to advances of any trust capital;

e

a jobseeker’s back to work bonus;

f

a payment made as a result of a determination of unfair dismissal by a court or tribunal, or by way of settlement of a claim for unfair dismissal;

g

any compensation paid as a result of a determination of medical negligence or in respect of any personal injury by a court, or by way of settlement of a claim for medical negligence or personal injury;

h

the capital held in any personal or occupational pension scheme;

i

any cash value payable on surrender of a contract of insurance;

j

any capital payment made out of the Independent Living Funds;

k

any bereavement support payment in respect of the rate set out in regulation 3(2) or (5) of the Bereavement Support Payment Regulations 201731;

l

any capital insurance or endowment lump sum payments that have been paid as a result of illness, disability or death;

m

any student loan or student grant;

n

any compensation paid as a result of the Grenfell Tower fire;

o

any payments from the London Emergencies Trust32;

p

any payments from the National Emergencies Trust33;

q

any payments in relation to internment, forced labour, injury or loss of a child during the Second World War;

r

any compensation paid as a result of variant Creutzfeldt-Jakob Disease;

s

any compensation paid under the Victims of Overseas Terrorism Compensation Scheme34;

t

any compensation paid under the Windrush Compensation Scheme (Expenditure) Act 202035;

u

any compensation paid under—

i

schemes established by the Criminal Injuries Compensation Act 199536 or the Criminal Injuries Compensation (Northern Ireland) Order 200237; or

ii

criminal injuries compensation schemes in operation before the commencement of the schemes mentioned in sub-paragraph (i);

v

any payments under—

i

the Armed Forces and Reserved Forces Compensation Scheme38;

ii

the Lambeth Children’s Homes Redress Scheme39;

iii

the Medomsley Detention Centre Physical Abuse Settlement Scheme40;

iv

the Miscarriage of Justice Compensation Scheme41;

v

the Jesus Fellowship Redress Scheme42;

vi

the Vaccine Damage Payment Scheme43;

vii

the We Love Manchester Emergency Fund44; and

viii

the following Infected Blood Support Schemes—

aa

the England Infected Blood Support Scheme45;

bb

the Infected Blood Payment Scheme for Northern Ireland46;

cc

the Scottish Infected Blood Support Scheme47;

dd

the Wales Infected Blood Support Scheme48; and

ee

the UK-wide Infected Blood Interim Compensation Payment Scheme49.

Gross monthly income test10

1

If a party satisfies the disposable capital test, no fee is payable under this Order if, at the time when the fee would otherwise be payable—

a

the party’s gross monthly income does not exceed the applicable threshold specified in sub-paragraph (2); or

b

the party is in receipt of any passporting benefits specified in sub-paragraph (7).

2

The applicable threshold is—

a

£1,420, for a party that is single and has no children;

b

£2,130, for a party that is part of a couple and has no children; or

c

as otherwise calculated in accordance with sub-paragraph (3).

3

Where this sub-paragraph applies, the applicable threshold is calculated by taking the following steps—

  • Step 1

    Identify the number of children aged 13 or below and multiply this number by £425.

  • Step 2

    Identify the number of children aged 14 or over and multiply this number by £710.

  • Step 3

    Add together the amounts calculated at Step 1 and Step 2.

  • Step 4

    Add £1,420 to the amount calculated at Step 3.

    The result is the applicable threshold for a party that is single and has children.

  • Step 5

    If a party is part of a couple, take this additional step.

    Add £710 to the amount calculated at Step 4.

    The result is the applicable threshold for a party that is part of a couple and has children.

4

Subject to sub-paragraph (6), if a party’s gross monthly income exceeds the applicable threshold, that party must pay an amount towards the fee payable to which the application for remission relates, which is determined in accordance with sub-paragraph (5).

5

Where this sub-paragraph applies, the amount payable is determined as follows—

  • Step 1

    Deduct the applicable threshold from the party’s gross monthly income.

    The amount calculated is the “excess income”.

  • Step 2

    Apply the rates specified in the second column of the Table to the parts of the party’s

    excess income specified in the corresponding row of the first column.

  • Step 3

    Add together the amounts calculated at Step 2 (if there are two or more such amounts).

    Subject to sub-paragraph (6), the result is the amount payable.

    Table

    Part of excess income

    Rate

    Up to and including £1,000

    50%

    £1,001 to £2,000

    70%

    £2,001 to £3,000

    90%

6

No party is required to pay an amount that is more than the fee payable for which the application for remission has been made, if no remission had been granted.

7

The passporting benefits referred to in sub-paragraph (1)(b) are—

a

income-based Jobseeker’s Allowance;

b

income-related Employment and Support Allowance;

c

income support;

d

pension credit (Guarantee Credit); and

e

universal credit with additional gross annual earnings of less than £6,000.

Gross monthly income cap11

No remission is available if a party’s gross monthly income exceeds the applicable threshold determined in accordance with paragraph 10(2), plus the sum of £3,000.

Gross monthly income12

1

Gross monthly income” means the total sum of—

a

the lower of—

i

the gross amount that has been earned by the party in the month immediately preceding that in which the application for remission is made; or

ii

the average of the gross amount that has been earned by the party in the three months immediately preceding that in which the application for remission is made, and

b

the gross amount received by the party from any other source in the month immediately preceding that in which the application for remission is made, other than receipt of any excluded benefits.

2

For the purposes of sub-paragraph (1), earnings from a trade, business or gainful occupation other than an occupation at a wage or salary are calculated as the lower of—

a

the party’s net profits for the month preceding that in which the application for remission is made; or

b

the average of the party’s net profits for the three months preceding that in which the application for remission is made.

3

In sub-paragraph (2), “net profits” means the profits which have accrued to the party less all sums necessarily expended to earn those profits.

Disposable capital and gross monthly income of a partner13

1

The disposable capital and gross monthly income of a partner of a party is to be treated as disposable capital and gross monthly income of the party, subject to sub-paragraph (2).

2

Where the partner of a party has a contrary interest to the party in the matter to which the fee relates, the disposable capital and gross monthly income of that partner, if any, is not treated as the disposable capital and gross monthly income of the party.

Application for remission of a fee14

1

An application for remission of a fee must be made at the time when the fee would otherwise be payable.

2

Where an application for remission of a fee is made, the party must—

a

indicate the fee to which the application relates;

b

declare the amount of their disposable capital; and

c

provide documentary evidence of their gross monthly income and the number of children relevant for the purposes of paragraph 10.

3

Where an application for remission of a fee is made on the date on which a fee is payable, the date for payment of the fee is disapplied.

4

Where an application for remission is refused, or if part remission of a fee is granted, the amount of the fee which remains unremitted must be paid within the period notified in writing to the party.

5

The Chief Executive of the Supreme Court may, by written notice, request such additional information or evidence as is required to assess the party’s entitlement to fee remission under this Order, and the period specified by such notice must not be less than 7 days, beginning with the day after the date on which the notice is sent.

6

An application for remission of a fee may be treated as abandoned and no further action taken, if a party fails to provide the information requested under sub-paragraph (5) within the period specified by that notice, or such other extended period as may be agreed in writing at the Chief Executive of the Supreme Court’s discretion.

Remission in exceptional circumstances15

A fee specified in this Order may be remitted where the Chief Executive of the Supreme Court is satisfied that there are exceptional circumstances which justify doing so.

Remission for charitable or not-for-profit organisations16

Where an application for permission to intervene in an appeal is filed by a charitable or not- for-profit organisation which seeks to make submissions in the public interest, the Chief Executive of the Supreme Court may remit the fee in that case.

Refunds17

1

Where a party pays a fee at a time when that party would have been entitled to a remission if they had provided the documentary evidence required by paragraph 14, the fee, or the amount by which the fee would have been remitted as the case may be, must be refunded if documentary evidence relating to the time when the fee became payable is provided at a later date.

2

Where a fee has been paid at a time when the Chief Executive of the Supreme Court, if all the circumstances had been known, would have remitted the fee under paragraph 15, the fee or the amount by which the fee would have been remitted, as the case may be, must be refunded to the party.

3

No refund may be made under this paragraph unless the party who paid the fee applies within 3 months of the date on which the fee was paid.

4

The Chief Executive of the Supreme Court may extend the period of 3 months mentioned in sub-paragraph (3) if the Chief Executive of the Supreme Court considers that there is a good reason for a refund being made after the end of the period of 3 months.

Legal aid18

A party is not entitled to a remission of a fee if, for the purpose of the proceedings to which the fee relates—

a

they are in receipt of the following services under Part 1 of the Legal Aid, Sentencing and Punishment of Offenders Act 201250

i

legal representation; or

ii

family help (higher);

b

they are in receipt of legal aid under Part 2 of the Legal Aid, Advice and Assistance (Northern Ireland) Order 198151; or

c

they are living in Scotland and are in receipt of legal aid.

Vexatious litigants19

1

This paragraph applies where—

a

a restraint order is in force against a party; and

b

that party makes an application for permission to—

i

issue proceedings or take a step in proceedings as required by the restraint order;

ii

apply for amendment or discharge of the restraint order; or

iii

appeal the restraint order.

2

The fee prescribed by this Order for the application is payable in full.

3

If the party is granted permission, they are to be refunded the difference between—

a

the fee paid; and

b

the fee that would have been payable if this Schedule had been applied without reference to this paragraph.

Exceptions20

No remissions or refunds are available in respect of the fee payable for copy or duplicate documents.