British citizens who hope to access legal assistance through the proposed “Help with Fees” (HwF) scheme will not have cryptocurrency holdings classified as disposable income.
The United Kingdom’s Ministry of Justice published its response following public consultation over its proposed legal aid scheme to provide equal access to the justice system. HwF aims to provide financial support for court or tribunal fees to individuals with low income and minimal savings.
The scheme intends to ensure that individuals are not prevented from accessing courts and tribunals due to an inability to afford the fees associated. Its primary objectives look to ensure access to justice for low-income individuals, provide money to taxpayers who ultimately bear the cost of fee remissions, and ensure the scheme is accessible and eligibility criteria are clear.
The public consultation process drew questions relating to the Ministry of Justice’s proposal to amend the definition of disposable capital to include savings and investments with a “non-exhaustive list” of examples that included cryptocurrencies.
According to the ministry, most respondents support the proposal, highlighting that it helps capture investments that are not available as liquid assets.
Meanwhile, other respondents who disagreed with the proposal commented that applicants should not be penalized for having savings and investments, especially pensioners and self-employed individuals:
“There was also a comment that the non-exhaustive list is too vague and there should be more clarity, for example, that cryptocurrency should be included.”
The government’s response stressed that it would not propose an exhaustive list of the types of capital that would constitute savings and investments, as it would create “unnecessary risk” for all types of capital omitted or not yet developed.
“Furthermore, we confirm that cryptocurrencies are already covered by the current definition of capital under the Fees Orders, and they will continue to be covered by the proposed definition.”
The ministry plans to review its list in the public guidance accompanying HwF applications to assist applicants in figuring out whether certain types of capital are covered in its current definition.
The public response also notes that individuals who have savings or investments above a threshold of £16,000 will be expected to use these resources to pay legal fees before receiving assistance from the HwF scheme.
The U.K. has been inching closer to passing legislation that will bring cryptocurrencies under similar laws that govern traditional assets in the country. The Financial Services and Markets Bill is expected to give the U.K. Treasury, the Financial Conduct Authority, the Bank of England and the Payments Systems Regulator the ability to propose and enforce rules for cryptocurrency-related businesses.
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Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
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Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.