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“I don’t visit the prison anymore to see him because he’s unrecognisable. His eyes are dark. He’s exhausted – mentally, physically, emotionally.”

This is how Clara White speaks about her brother, Thomas White, who has been in prison for the past 11 years. His crime? Stealing a mobile phone.

During that time – much of which Thomas has spent in solitary confinement – Clara has witnessed her brother “languish” in his prison cell while his mental health has deteriorated to the extent that he has now been diagnosed with psychosis and suffers from hallucinations.

“His language was becoming something we didn’t understand,” she tells Sky News.

“He would tell us that he met Moses in the segregation unit. He wore his bedding as his own clothes. He went round the wings and he would bless people who tell him that he’s Jesus Christ.”

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What is an IPP sentence?

The picture she paints of her brother in prison is a far cry from the musically talented but troubled person who entered it, aged 27, having been handed a special kind of prison sentence that courts in England and Wales could impose between 2005 and 2012.

Called sentences of imprisonment for public protection, IPPs were open-ended prison sentences that were intended for the most serious violent and sexual offenders who posed a significant risk of serious harm to the public but whose crimes did not warrant a life term.

The government’s stated aim was to bring in a new sentence to “ensure that dangerous violent and sexual offenders stay in custody for as long as they present a risk to society”.

But not long after they were introduced, fears grew among politicians that IPPs were being applied too broadly and catching more minor offenders as well as the most serious – partly due to the fact that previous convictions were taken into account when determining whether someone posed a “significant risk”.

Thomas White
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Thomas White when he was younger

Thomas was sentenced to two years for stealing the mobile phone in a non-violent exchange back in 2012, but because he had 16 previous convictions for theft and robberies, he was given an IPP sentence and has served 11 years.

He has only met his son, Kayden, once – when he was nine months old.

Although IPPs have now been abolished, the change was not applied retrospectively, meaning there are potentially thousands more prisoners like Thomas who are being detained for far longer than their original term intended.

Calls are growing for the government to resentence those who remain in jail.

And in an extraordinary intervention, Alice Jill Edwards, the UN’s special rapporteur on torture and other cruel, inhuman or degrading treatment or punishment, has described IPP sentences as “psychological torture”.

‘Unclear, inconsistent and uncertain’

The objective of IPPs was to ensure that repeat offenders who were deemed a risk to the public were not just released at the end of their tariff, but would instead only get out once they had proved they had reformed their character.

Under IPPs, the fate of the prisoner effectively lay in the hands of the parole board, which alone would determine whether or not they could be released based on whether they still posed a threat to society.

But frustrations quickly grew that access to mandatory rehabilitation courses needed to satisfy the parole board were being denied – either through a lack of availability or through long waiting lists – leading to a Catch-22 type situation that left IPPs in a state of limbo.

By 2011, there was growing recognition that IPPs were not working. David Cameron, who was prime minister at the time, called the sentences “unclear, inconsistent and uncertain”.

A year later, in 2012, they were abolished by the coalition government.

But because of the decision not to make this retrospective, many of those who were inside when they were scrapped have stayed inside. Today, that number stands at nearly 2,900 people – including 1,312 prisoners who have never been released.

Aaron Graham and Cherrie Nichol pictured last year.
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Aaron Graham and Cherrie Nichol pictured last year

‘He sits and waits for the day’

One such prisoner is Aaron Graham, who was 25 years old when he was sentenced to two years and 124 days for grievous bodily harm in 2005, in which the victim was left with a broken cheekbone. Eighteen years later, he is still in prison.

His sister, Cherrie Nichol, says he “sits and waits for the day” he will get to experience life outside of prison walls.

“My brother got involved in a fight with two other lads – one of them got off, and my brother and another guy got sentenced,” she explains.

“Aaron ended up with an IPP. At the time, he took it on the chin – he had two years and 124 days to serve, he thought he would pull his socks up and get home.

“When things didn’t materialise after a few years, after a few excuses, people started to take their own lives.”

Since 2005, 81 people serving IPP sentences have taken their own lives, including nine in the whole of 2022 – a record annual total.

“I realised I might lose my brother, on a sentence of no hope,” Cherrie says. “I don’t want him to be next.”

She adds: “Yes, my brother got into a fight and he should have had the time he got. But Aaron does not pose a risk – the only risk is him dying in prison not being able to cope with his sentence and what it’s done to him; the longer he’s left not knowing when he may be home.”

Aaron Graham when he entered prison.
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Aaron Graham when he entered prison, aged 26

‘Psychological torture’

Ms Edwards at the UN is unequivocal that the preventative aspect of IPPs – keeping people in prison for what they might do – is wrong.

“I do think this is one of the most scandalous stories in the British justice system in a long while,” she tells Sky News in an exclusive interview.

“The psychological effects on the individuals would amount in my opinion, depending on an individual assessment, to psychological torture – or at least psychological, inhuman or cruel treatment. It’s certainly of that calibre.”

Why were IPPs introduced?

IPPs were introduced in the Criminal Justice Act of 2003 and came into effect in England and Wales two years later.

The government’s stated aim was to bring in a new sentence to “ensure that dangerous violent and sexual offenders stay in custody for as long as they present a risk to society”.

In its white paper of 2002, the government said it wanted to ensure that the public are “adequately protected from those offenders whose offences do not currently attract a maximum penalty of life imprisonment but who are nevertheless assessed as dangerous”.

An example of a serious offender who was given an IPP sentence was John Worboys, the black cab rapist, who was first jailed in 2009 for 19 sex offences against 12 women over a three-year period.

One of the main criticisms levied at the IPP sentence was that it was applied too broadly and was poorly targeted.

Courts could impose IPPs where an offender had been convicted of one of 96 specified “serious” violent or sexual offences – carrying a maximum sentence of 10 years or more.

But an offender was also presumed to pose a “significant risk” if they had previously been convicted of one those serious offences, as well as a further 57 “specified offences” with a maximum sentence of between two and seven years.

According to the Sentencing Academy, this is one factor that explains why IPPs were used more frequently than the government perhaps intended.

It explained: “Unless the court found it unreasonable to do so, where an offender was convicted of one of the serious offences and they had a previous conviction from one of the list of 153 specified offences, they had to consider the offender to be dangerous and impose an IPP sentence.”

This led to what the HM Chief Inspector or Prisons called an “explosion” in the number of people receiving IPPs.

‘Follow the evidence’

There is one man who has led the charge for IPP reform for decades.

His name is Lord David Blunkett – the former Labour home secretary who introduced them back in 2005.

He explains that while the motive behind IPPs was “well intentioned”, he feels “deep regret” for the long-term consequences felt by those serving them.

Former home secretary David Blunkett, who introduced IPP sentences in the Criminal Justice Act of 2003.
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Former home secretary David Blunkett introduced IPP sentences in the Criminal Justice Act of 2003

“While the original intention, I stand by because it was a very reasonable thing to do, the implementation was a major mistake, and I’ve taken my share of blame for that,” he says.

“I obviously have deep regrets because of the consequences to individuals down the line – which is why I’m in touch with so many of them, and have spent a number of years now trying to bring about rapid and reasonable change.”

Lord Blunkett is supporting a campaign by Sir Bob Neill, the Conservative chair of parliament’s Justice Select Committee, that is urging the government to carry out a resentencing of the remaining IPP population.

Sir Bob is calling for this through an amendment to the Victims and Prisoners Bill going through parliament, which he says has received cross-party support.

“What I’m proposing in my amendment is that because it’s unusual to retrospectively change sentences – but not impossible – that we set up an expert committee of senior judges and lawyers to give the government the best steer on how best to do that.”

Aaron Graham and Cherrie Nichol as children
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Aaron Graham and Cherrie Nichol as children

Sir Bob hopes that the justice secretary, Alex Chalk, will show a more of willingness to consider his proposals than his predecessor Dominic Raab, who flatly rejected the suggestion on the grounds resentencing would “give rise to an unacceptable risk to public protection”.

MPs and families have identified in Mr Chalk a potential for reform of the system, given his past statements about IPPs.

Mr Chalk, who replaced Mr Raab in April, has called IPP sentences a “stain on our justice system” that “should never have happened”.

However, like his predecessor, Mr Chalk has described facing a “conundrum” in wanting to solve the “injustice” of the IPP sentence while also feeling a duty to “protect the public”.

The justice secretary has revised the IPP “action plan” started under Mr Raab which aims to solve the dilemma by reducing the number of those in prison even further.

For many, it is simply not enough.

In a direct appeal to Mr Chalk, Sir Bob said: “Alex is a good man and a highly experienced criminal barrister. He’s actually seen these sentences in operation in a way that some of his predecessors perhaps hadn’t.

“So I say to him, ‘Alex, you’re a lawyer – follow the evidence’.”

British Conservative member of parliament Alex Chalk walks outside Downing Street, in London, Britain, April 21, 2023. REUTERS/Toby Melville
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Justice Secretary Alex Chalk has called IPP sentences a ‘stain’ on the criminal justice system


‘The revolving door’ – life on recall

Another aspect to the IPP sentence that hangs over prisoners, and which the government may be more inclined to reform, is recall.

If an IPP prisoner is released, they are put on licence with strict conditions. If a prisoner breaches their licence conditions, they could be sent back to prison at any time.

The licence is for life but they can apply to have it terminated after 10 years. One concession the government is thought to be considering is reducing that period to five years.

According to the campaign group Ungripp, since 2015, when reliable data began to be published, there have been 4,434 incidents of recalling people serving an IPP sentence, including some who may have been recalled multiple times.

Lord Blunkett believes there are now more people in prison on IPP because they’ve been recalled from their licence conditions than there are who have never been released.

“We’re going to reach a silly situation where for very small reasons, the recall conditions end up with a very large cohort, who simply go in and out the revolving door,” he says.

“That has to be broken – otherwise, people just don’t have the chance to restore their lives.”

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Ex-IPP prisoner’s ‘total loss of hope’

‘I’m not able to live a normal life’

One IPP prisoner who understands the daily reality of being on recall is Anthony Hipkiss.

Anthony is an ex-IPP prisoner who served 16 years for threats to kill under an IPP sentence and was released in February.

He has been recalled back to prison three times under a licence that he is now subject to for at least 10 years. He says he lives in constant fear of being sent back to prison and cannot fully reintegrate into the community and family life.

“There’s something about this sentence which always stays with you,” he tells Sky News.

“I’ve got a weekly reminder of what I’m serving, I still wear a tag on my leg, which tells me everyday I’m serving that sentence.

“When I see a prison van going past I think ‘what if?’ Sometimes I think they’re coming for me.

“I’m not able to live a normal life. I don’t have permission to do anything.”

Garth prison
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Garth prison in Lancashire, where Thomas White is currently being held

Anthony now works for an organisation called On the Out, which aims to help people leaving the criminal justice system.

“I’ve got an unbelievable support network around me – my family and my church and so on but a lot of it is down to me. The onus is on me not to put things wrong this time.”

Asked to reflect on the incidents that put him in prison, he acknowledges it was right he spent time behind bars.

“I was a threat. I was a danger,” he admits. He says the third time he was recalled gave him the “kick up the backside” he needed and showed him “what IPP was all about”.

But he adds: “I never thought I’d be here 16 years later, still going for probation, I don’t think the incident warrants a life sentence. I don’t think the crime warrants a whole life sentence.”

The overall toll of serving an IPP sentence has been tough. He says at his lowest point, he tried to take his own life on three occasions.

“I got to such a point where I was like, I don’t want live no more,” he said. “This thing’s literally become a death sentence for some people.”

‘The international community is watching’

For the UN’s Ms Edwards, the “repetitive” recalling of people could amount to “abuses of process, abuses of power”.

“The government, or the courts, need to really assess whether that detention is lawful. It might be lawful under the law – but that doesn’t mean it’s lawful under international human rights law.”

Her conclusion has led her to believe that IPP prisoners could have a case to take to the European Court of Human Rights, which previously described the sentences as “unlawful”. She has also written to the government urging it to carry out a review of IPPs.

“I hope that there’s some redress without the families needing to go through the laborious process of going through court. But of course, that is open to them.”

‘We’ll do everything we can’

After Thomas’s behaviour became more and more erratic, Clara pushed for an independent psychiatric assessment, which recommended that he be transferred to a psychiatric hospital.

It reads: “Mr White did describe a sense of hopelessness about his sentence and the outcome of recent parole hearings.

“It is probable that this negative experience has contributed to the development of his delusion system and his voices.

“Mr White’s views mirror those identified in the report, which emphasises the psychological harm caused by the IPP sentence, leading to feelings of hopelessness, despair, and which presented a challenge to their progression.”

Families and campaigners hope that with Sir Bob’s amendment, the government will address their pleas for their loved ones to be resentenced.

But could politics, once again, be the deciding factor in the fate of these prisoners?

With a general election potentially just 12 months away, families – and indeed some MPs – are concerned that no political party will want to act out of fear that one mis-step, or one wrong release, could generate a backlash in the media.

Clara White and her nephew, Kayden
Image:
Clara White and her nephew, Kayden

On that, Lord Blunkett has a clear message.

“If change is not made in the House of Commons, we’ll do everything we can in the House of Lords.

“We’ve just got to get common sense back into this situation – for the sake of all those including their families who have been suffering this for so long.”

The Ministry of Justice said its updated IPP action plan will provide support for prisoners who are at risk of self harm or suicide and will allow greater access to rehabilitation programmes to help secure their future release and employment.

A spokesperson said: “We abolished IPP sentences in 2012 and have already reduced the number of unreleased IPP prisoners by three quarters. We will continue to help those still in custody to progress towards release.

“These offenders were deemed a serious risk to the public and we make no apologies for putting public protection first by ensuring that each release is properly assessed by the Parole Board.”

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK

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Badenoch has done enough to hold off her critics – for now

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Badenoch has done enough to hold off her critics - for now

Kemi Badenoch strode onto the conference stage to deliver a speech focused on how her party would cut national spending and painstakingly rebuild the economy after the “doom loop” of a Labour government.

The headline moment was a pricey home-owning rabbit pulled out of the hat, a pledge to scrap stamp duty in a paean to the Conservative dream of property ownership: a promise delivered to delighted applause.

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The party claims the cost of abolishing tax duty on people’s primary residences would be around £9 billion – a considerable chunk of the £23 billion in cuts the party are pledging to find from the welfare budget.

It’s a clear statement of Conservative intent, delivered with a new-found confidence from a woman who has faced months of speculation about her leadership.

Shadow business secretary Andrew Griffith, shadow environment secretary Victoria Atkins, and shadow housing secretary Sir James Cleverly enjoying the moment. Pic: PA
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Shadow business secretary Andrew Griffith, shadow environment secretary Victoria Atkins, and shadow housing secretary Sir James Cleverly enjoying the moment. Pic: PA

Unlike many of her previous speeches, this one didn’t dwell on the previous government’s mistakes.

Indeed, she said she wanted to celebrate the “great things” her party had done in 14 years in power – delivering Brexit, supporting Ukraine, and halving the deficit from 2010 to 2020.

The economic record of the past four years of Conservative government was unsurprisingly left unsaid. But the subtext has been clear throughout conference – a drive to rebuild the party’s reputation for economic competence following the economic disaster of Liz Truss’s mini-budget three years ago.

Now we’re told “only the Conservatives” can be trusted with the economy and border security, with Badenoch highlighting her “golden rule” of government spending aimed at reducing the deficit, reiterating the shadow chancellor’s promises to slash government spending by £47bn.

Kemi Badenoch with her husband, Hamish, after the speech. Pic: PA
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Kemi Badenoch with her husband, Hamish, after the speech. Pic: PA

Unlike Sir Keir Starmer and Sir Ed Davey, Badenoch chose not to focus her attacks on Reform UK – conscious that many of her supporters are drawn to Nigel Farage’s ideas.

She doesn’t want to risk alienating them even further- particularly after a conference where we’ve seen a steady stream of local councillors announcing their defection from the Tories to Reform.

There were a few gentle jokes at their expense, highlighting Reform’s pledges to both slash taxes and expand public spending.

She claimed Farage is planning a free beer giveaway – and “shaking the same magic money tree” as Labour and the Lib Dems. But she didn’t repeat the “socialist” attack line we’ve heard from other Tories on Reform this conference.

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In full: Badenoch keynote speech

The driving force of this speech was an attack on the government, and a pledge to “clear up the mess left by Labour” – on the economy, on border security, and on sleaze.

Her Churchillian claim that “never in the field of human history have so many been let down by so few” earned her loud guffaws from the hall – followed by a roll-call of scandal-hit Labour figures – from former British Ambassador to the US Peter Mandelson to recently resigned deputy prime minister Angela Rayner.

The hall was full – and the party faithful keen to applaud.

They enjoyed Badenoch highlighting the challenge faced by the Tories in drawing a rather melodramatic equivalence with the fight against fascism in the Second World War, and the battle to “banish socialism and deliver prosperity” in the 1980s – evoking both Sir Winston Churchill and her political hero Margaret Thatcher.

They loved her declaration of undying love for the Conservative party, who she described as her family – “in many ways quite literally”, given that she married the deputy chairman of her local Conservative association.

Badenoch doesn’t enjoy the level of devotion we’ve seen for her defeated leadership rival Robert Jenrick, who earned rapturous applause for his speech attacking activist judges on Tuesday – and polling shows he’s much more popular with the party membership.

But CCHQ will undoubtedly be relieved to have avoided the kind of outright rebellion we saw from Andy Burnham at Labour’s conference last week.

And given the delighted response from her headline announcement in the hall today – it looks like Badenoch has done enough to hold off her critics – at least for the time being.

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Huge surge in online hate crimes targeting footballers revealed

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Huge surge in online hate crimes targeting footballers revealed

Suspected online hate crimes referred to police have quadrupled already this season in English football, Sky News can reveal.

And we have learned that the football policing unit has urged the government to form a new unit to address racism in the sport.

We have also uncovered new details about the police investigation into the hate received by England star Jess Carter, who revealed to me after the Euros final win that the abuse nearly forced her to stop playing at the tournament.

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Lioness Jess Carter: ‘It’s been tough’

But the scale of racism facing footballers is highlighted by the abuse received by Kira Rai – a British Sikh Punjabi – after signing for Peterborough United last month.

They play in the fourth tier, far from the spotlight of the Women’s Super League, but that does not limit the venom targeted at Rai on social media.

She told Sky News: “There were some racial slurs about my heritage, where I come from, that I don’t belong in this country, that I should go back to X country and just sorts of things along those lines.

“I think that’s probably quite difficult to read about yourself at the end of the day.

“It should be a moment for me to celebrate, I’ve just joined a new club.”

What an impact she has made at her new club, scoring an incredible five-minute hat-trick in the FA Cup on Sunday on her home debut.

But the joy is tinged with sadness when we meet the next day.

‘A reflection of society’

“I’ve been in football since I was six, so for people to question whether I belong in football purely based on the colour of my skin, I think is something that’s really difficult to get your head round,” she said.

“It’s probably a reflection of what’s going on in society right now and how prevalent racism has become, and I think football is quite clearly a reflection on society.

“In society, over the last weeks, months, I think there’s almost an underlying tension that’s perhaps not been there in recent years.”

Kira Rai, who plays for Peterborough United, suffered racial slurs about her heritage
Image:
Kira Rai, who plays for Peterborough United, suffered racial slurs about her heritage

‘Depressing’ rise in racism

The is felt by the police unit that has overseen football issues for the last two decades, with racism in stadiums and online rising.

Social media is a growing concern, with 170 referrals already this season of online racism compared to 54 in the first three months of the 2022-23 season and 41 in 2023-24.

“We’re seeing more reports, which is depressing,” Chief Constable Mark Roberts said in an exclusive interview.

“I think we’re also seeing that the number of those reports that actually meet the criminal threshold has increased.”

It’s up to 154 already this season.

Chief Constable Mark Roberts says reports of abuse which meet the criminal threshold has increased
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Chief Constable Mark Roberts says reports of abuse which meet the criminal threshold has increased

Incidents ‘creeping back’ into stadiums

“There’s an awful lot in the political sphere that people are saying that probably a few years ago just wouldn’t have been thought of, so I think it taps into that broader societal piece which makes it challenging,” the National Police Chiefs Council’s football lead added.

“Sadly that seems to have gone backwards a bit. The lower league grounds now, we are seeing incidents creep back into the games which obviously we’ve got to be really keen to clamp down on and make sure that people face consequences.

“Now whether that’s been driven by people being able to say things or feel that they can say things online and that’s now leaking into the actual stadiums, there is a definite trend to see more of it.”

One of the unit’s most high-profile investigations has been into the racism that led Carter to speaking out during England’s run to Euro 2025 and stepping away for a time from social media.

While two arrests have been announced, Sky News can reveal a third person has been arrested. A fourth suspect has also been identified, and six people overseas are under suspicion.

Carter previously told Sky News: “I wasn’t sure I was going to be able to come back on the pitch and be me.”

No one has been charged.

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FA considering social media boycott over racism

‘Slippage’ with Musk’s X

Three cases are pending with Elon Musk’s X.

And whether it’s X or Meta-owned Instagram, there is no agreement on the “grossly offensive legal threshold” with policies more tolerable than British law.

Mr Roberts said: “There has been some slippage recently with X that we’re working with them to try to get back to those standards. And I think one of the factual issues we sometimes struggle with is our perception of what is clearly a criminal offence.

“They can sometimes suggest that it doesn’t meet the threshold for their community guidelines, which I find difficult to reconcile really because surely if it meets the criminal prosecution threshold, surely it should breach [their guidelines], and we sometimes have a wrangle about securing information from them.”

England's Jadon Sancho (L), Marcus Rashford (R) and Bukayo Saka were racially abused after missing penalties during the 2021 Euros final. Pic: AP
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England’s Jadon Sancho (L), Marcus Rashford (R) and Bukayo Saka were racially abused after missing penalties during the 2021 Euros final. Pic: AP

A challenge is dealing with international police forces with two-thirds of referrals of racism generated overseas – beyond the jurisdiction of the football policing unit.

While not naming particular countries, Mr Roberts said abuse posted from Eastern Europe and Asia is the main problem.

“The level of interest from some countries varies,” he said. “Some just aren’t interested. We won’t get a response. Others will try and take positive action.”

The approach of English football can seem somewhat disjointed if different campaigns and anti-racism investigations run by different parts of the game.

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For Mr Roberts, that could ideally be enhanced.

“I would like a joint function to tackle online hate with ourselves, the football bodies, Kick It Out and others, ideally supported by government, so that we can do it in a really coherent, joined-up way,” he said in our interview at Cheshire Police HQ.

“I think that would make a massive difference, whether it’s education, whether in-stadium hate, whether it’s online hate.

“The way we’re going to tackle this most effectively is by doing it in a joined-up way where we’re mutually supportive. So I think that’s something we’d be keen to pursue.”

So would those who have been the target of abuse just for doing what they love – playing football.

‘No one wants to talk about this’

Kira Rai, a role model for British South Asians in football, said: “Perhaps there needs to be an overhaul, everyone needs to come together and actually deal with these uncomfortable conversations because they’re not necessarily fun conversations that we have.

“No one really wants to talk about this, and I can understand why. For real change, for genuine change to actually occur, you have to have these difficult conversations.

“You have to listen to player stories, to fan stories, to anyone’s stories in football, in society, to actually get to the bottom of it.”

And as some players showed last weekend in the Women’s Super League, change doesn’t come by taking a knee, but taking a stand.

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Millions of people could each get hundreds of pounds in compensation over car loan mis-selling

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Millions of people could each get hundreds of pounds in compensation over car loan mis-selling

Up to 14.2 million people could each receive an average of £700 in compensation due to car loan mis-selling, the financial services regulator has said.

Nearly half (44%) of all car loan agreements made between April 2007 and November 2024 could be eligible for payouts, the Financial Conduct Authority (FCA) said.

Those eligible for the compensation will have had a loan where the broker received commission from a lender.

Lenders broke the law by not sharing this fact with consumers, the FCA said, and customers lost out on better deals and sometimes paid more.

A scheme is seen by the FCA as the best outcome for consumers and lenders, as it avoids the courts and the Financial Ombudsman Service, therefore minimising delay, uncertainty and administration costs.

The scheme will be funded by the dozens of lenders involved in the loans, and cost about £8.2bn, on the lower end of expectations, which had been expected to reach as much as £18bn.

The figure was reached by estimating that 85% of eligible applicants will take part in the scheme.

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What if you think you’re eligible?

Anyone who believes they have been impacted should contact their lender and has a year to do so. Compensation will begin to be paid in 2026, with an exact timeline yet to be worked out.

The FCA said it would move “as quickly as we can”.

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Payouts due after motor finance scandal

People who have already complained do not need to take action. Complaints about approximately four million loan agreements have already been received.

There’s no need to contact a solicitor or claims management firm, the FCA said, as it aimed for the scheme to be as easy as possible.

A lender won’t have to pay, however, if it can prove the customer could not have got cover anywhere else.

The number of people who will get a payout is not known. While there are 14.2 million agreements identified by the FCA, the same person may have taken out more than one loan over the 17-year period.

More expensive car loans?

Despite the fact many lenders have to contribute to redress, the FCA said the market will continue to function and pointed out the sector has grown in recent years and months.

In delivering compensation quickly, the FCA said it “can ensure that some of the trust and confidence in the market can be repaired”.

It could not, however, rule out that the scheme could mean fewer offers and more expensive car loans, but failure to introduce a scheme would have been worse.

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The FCA said: “We cannot rule out some modest impacts on product availability and prices, we estimate the cost of dealing with complaints would be several billion pounds higher in the absence of a redress scheme.

“In that scenario, impacts on access to motor finance and prices for consumers could be significantly higher with uncertainty continuing for many more years.”

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