Departmental Overview, October 2018
Ministry of Justice If you would like to know more about the National Audit Office’s (NAO’s) CONTENTS Ministry of Justice This overview summarises the work of the Ministry of Justice including what it work on the Ministry of Justice, (the Ministry) does, how much it spends, recent and planned changes, and what to look out for please contact: across its main business areas and services. Oliver Lodge Director, Value for Money Audit [email protected] Contents and Bookmarks 020 7798 7827 Over- Overviewview About the Ministry of Justice Steven Corbishley How the Ministry is structured Director, Financial Audit Where the Ministry spent its money in 2017-18 [email protected] Major programmes and developments Exiting the European Union 020 7798 7619 Managing public money
Part One If you are interested in the NAO’s The Ministry is managing a range of cost pressures work and support for Parliament more
Part Two About the Ministry of Justice How the Ministry Where the Ministry widely, please contact: Services are under strain – Prisons is structured spends its money Services are under strain – Probation [email protected]
Part Three 020 7798 7665 Financial sustainability depends on successfully delivering challenging reforms
Part Four What to look out for
Major programmes Exiting the Managing public money and developments European Union The National Audit Office scrutinises public spending for Parliament and is independent of government. The Comptroller and Auditor General (C&AG), Sir Amyas Morse KCB, is an Officer of the House of Commons and leads the NAO. The C&AG certifies the PART ONE PART TWO PART THREE PART FOUR accounts of all government departments and many other public sector bodies. He has statutory authority The Ministry is Services are Financial sustainability What to look out for to examine and report to Parliament on whether departments and the bodies they fund, nationally managing a range of under strain depends on and locally, have used their resources efficiently, cost pressures successfully delivering effectively, and with economy. The C&AG does this through a range of outputs including value-for-money challenging reforms reports on matters of public interest; investigations to establish the underlying facts in circumstances where
concerns have been raised by others or observed Ministry of Justice through our wider work; landscape reviews to aid | transparency; and good‑practice guides. Our work ensures that those responsible for the use of public money are held to account and helps government to improve public services, leading to audited savings of £741 million in 2017.
Design & Production by NAO External Relations DP Ref: 005164-001 Departmental Overview 2018
© National Audit Office 2018 2 OVERVIEW CONTENTS About the Ministry of Justice The Ministry of Justice (the Ministry) is a ministerial department supported by 37 public bodies. It is responsible for the following areas of the criminal, civil and family justice systems in England and Wales provide: courts and tribunals (administered in partnership with the independent judiciary); prisons;The Ministry of Justice The Ministry set out four strategic objectives in its 2018-19 Single Departmental Plan probation; and services(the Ministry) to help victims of crime, is children, a ministerial vulnerable people and those seeking access to justice,department including legal aid. supported by This diagram37 public shows how bodies. the Ministry set out four strategic objectives in its 2018-19 Single Departmental Plan. It alsoIt shows is responsiblethe Ministry’s performance for against the these following objectives. areas of the criminal, civil and family justice systems in England and Wales provide:
• courts and tribunals Provide a prison and Deliver a modern Promote a global Transform the Ministry (administered in partnership probation service that courts and Britain and the rule with the independent judiciary); reforms offenders justice system of law
• prisons; To measure its performance against these objectives, the Ministry has chosen the following sub-objectives • probation; and • services to help victims of Get the basics right Provide a fair and effective Ensure growth and Maintain a continued crime, children, vulnerable in prisons justice system readiness for leaving tight grip on people and those seeking the European Union departmental finances access to justice, including legal aid. Ensure a sustainable Improve experience of Maintain a domestic Ensure a positive and prison population victims of crime within the human rights framework engaged workforce criminal justice system that builds on our longstanding tradition of rights and liberties
Tackle re-offending Champion our Drive efficiencies and
through a cross- world‑class judiciary a better service Ministry of Justice | government approach
Support better outcomes for children, families and vulnerable adults Departmental Overview 2018
3 OVERVIEW CONTENTS How the Ministry is structured
The Ministry delivers its objectives • HM Prison & Probation Service • The Criminal Injuries Compensation • The Parole Board, which is an through a number of public bodies (previously NOMS), which carries Authority, which deals with independent body that carries out covering criminal, civil and family out sentences given by the courts, compensation claims from people risk assessments on prisoners to justice systems in England and in custody and the community, and who have been physically or mentally determine whether they can be safely Wales, notably: rehabilitates people in its care through injured because they were the released into the community. • HM Courts & Tribunals Service, which education and employment. victim of a violent crime in England, Scotland or Wales. • The Children and Family Court is responsible for the administration • The Youth Justice Board, which Advisory and Support Service, of criminal, civil and family courts and oversees the youth justice system in • The Legal Aid Agency, which funds which represents children in family tribunals in England and Wales and England and Wales. civil and criminal legal aid and advice court cases in England. This body is non-devolved tribunals in Scotland. in England and Wales. independent of the courts.
This flow diagram shows how the Ministry of Justice works with a number of other government bodies across the criminal justice system in England and Wales. The Ministry of Justice works with a number of other government bodies across the criminal justice system in England and Wales
Offence/arrest Charge and prosecution Trial and hearing Sentencing Post‑sentencing
Home Office Attorney General’s Office Ministry of Justice
40 Police and Crime Crown Prosecution Service HM Courts & HM Prison & Youth Justice Criminal Injuries Commissioners1 Tribunals Service Probation Service Board Compensation Authority
43 Police Forces Serious Fraud Office Magistrates’ Crown Prisons Probation Courts Courts
National Crime Agency Legal Aid Agency Youth National 21 Community Custody Probation Rehabilitation
Services Service Companies Ministry of Justice |
Stage of the process Home Office and related parties Attorney General’s Office and related parties Ministry of Justice and related parties
Notes 1 Greater Manchester Police, Metropolitan Police and the City of London Police do not have Police and Crime Commissioners. In these areas, Mayors and Metro Mayors have authority over the police. 2 A separate Departmental Overview is available on the Home Offi ce. Departmental Overview 2018 Source: National Audit Offi ce 4 OVERVIEW CONTENTS Where the Ministry spends its money
This diagram shows that the Ministry’s total operating expenditure in 2017-18 was £10 billion, Thewith incomeMinistry’s of £1.9 billion total reducing operating the final net public expenditure to £8.1 billion. expenditure in 2017-18 was £10 billion, with income of £1.9 billion reducing the final net public expenditure Levy Income – £14m Legal Services HM Prison & Probation to £8.1 billion. Board and Office for Service – £4,140m Legal Complaints Income – £263m Legal Services Board (net) – £3m
Judicial Appointments Commission (net) – £5m
Criminal Cases Review Commission (net) – £6m Legal Aid Agency – Total Ministry of Justice £1,873m Office for Legal Complaints gross expenditure Total Ministry expenditure Income – £175m (net) – £13m £10bn Income Central services expenditure Parole Board (net) – Public bodies expenditure £17m Executive non-departmental public bodies expenditure Office of the Public Income Other expenditure Guardian – £55m HM Courts & £1,871m Tribunals Service – Income – £65m £1,778m Notes 1 Figures include spending in Departmental Income – £134m Expenditure Limits (DEL) and Annually Youth Justice Board Managed Expenditure (AME), voted (net) – £106m and non-voted, for resource and capital spending. 2 The Ministry receives income from a Children and Family Court combination of fees (for example, for Advisory and Support courts processing divorce or probate Service (net) – £130m Policy, Corporate Services Ministry of Justice
claims), fi nes and recoveries from other | and Associated Offices – government departments. Higher Judiciary £1,482m 3 The Ministry also received levy income of Judicial Salaries – £14 million in relation to the Legal Services Criminal Injuries £148m Income – £1,201 Board and the Offi ce for Legal Complaints. Compensation 4 The individual accounts of each organisation Authority – £201m will not reconcile to the fi gures shown here due to adjustments made in consolidating Income – £18m the group account. Departmental Overview 2018 Source: Ministry of Justice, Annual Report and Accounts 2017-18, Session 2017-18, July 2018. Analysis of net resource and net capital outturn by section 5 OVERVIEW CONTENTS Major programmes and developments
The Ministry is managing a number of major programmes including: Red-Amber-Green ratings and life-time value of the 1 Ministry’s projects by the Infrastructure and Projects The Prison Authority, September 2017 Estate Trans- The Infrastructure and Projects Authority provides Delivery Confidence The Prison Estate Transformation forma- The Electronic Monitoring Programme, Assessment for all projects on the Government Major Projects Programme, which plans to provide up to tion which seeks to design and implement a new Portfolio (GMPP). This is an evaluation of each project’s likelihood of Pro- 10,000 new prison places by reconfiguring the electronic monitoring system and service to achieving its aims and objectives on time and on budget. It refers to a fixed point in time, using a five-point scale: Red, Amber-Red, Amber, existing custodial estate and constructing a monitor subjects wearing the devices. Whole‑life Amber-Green and Green. The Ministry’s 11 projects on the GMPP as number of new prisons and smaller houseblock costs are £581 million. at September 2017 were noted as follows: units within existing prisons. Whole-life costs Number of projects The lifetime value of the are not yet available because the programme is in each category projects in each category (£m) awaiting approval by HM Treasury. Green – gramme, which plans to provide up to 10,000 new prison places by reconfiguring the existing custodial estate and constructing a number of new prisons and smaller houseblock units within 0 0 existing prisons. Whole-life costs are not yet available because the programme is awaiting approval by HM Treasury.
2 Amber-Green The Elec- HM Courts & Tribunals Service Reform tronic Probation programme, introduced in 2 £2,668m Moni- Portfolio, with whole-life costs of £1.6 billion, toring December 2017 to structure commercial Pro- is about modernising infrastructure and negotiations on the early termination of Amber providing a flexible, modern service to court Community Rehabilitation Companies contracts users, thereby increasing efficiency and and to develop options for the future of 4 £3,562m improving service quality. probation services. Amber-Red
gramme, which seeks to design and implement a new electronic monitoring system and service to monitor subjects wearing the devices. Whole‑life costs are £581 million. 5 £2,731m 3 HM Courts & Tribunals Service Reform Portfolio, with whole-life costs of £1.6 billion, is about modernising infrastructure and providing a flexible, modern service to court users, thereby increas- ingOrganisational efficiency and improving service quality. change or structural reform within the Ministry Red 4 • Creation of HM Prison & Probation Service (HMPPS) in April 2017 with full responsibility for – Probation programme, introduced in December 2017 to structure commercial negotiations on the early termination of Community Rehabilitation Companies contracts and to develop options for 0 the future ofthe probation operational services. management of offenders in custody and the community, including the youth Ministry of Justice
custodial estate. | Organisational change or structural reform within the Ministry. 9 of the 11 projects £6 billion (67%) of the Creation• ofRestructuring HM Prison & Probation Service of the (HMPPS) Youth in April Justice2017 with full Boardresponsibility to for transferthe operational responsibilitymanagement of offenders for in custody the andyouth the community, custodial includ- are rated Amber or £9 billion in whole-life ing the youth custodial estate. estate into HMPPS and responsibility for commissioning into the Ministry. Amber-Red costs of the projects Restructuring of the Youth Justice Board to transfer responsibility for the youth custodial estate into HMPPS and responsibility for commissioning into the Ministry. is rated Amber or Amber-Red Creation of a new government-owned facilities management company, which started Creation• of a new government-owned facilities management company, which started operating in February 2018, to support the provision of facilities management and maintenanceoperating services to prisons in followingFebruary the collapse 2018, of Carillion to insupport the same month. the provision of facilities management and Source: Ministry of Justice, Ministry of Justice Government Major Projects
maintenance services to prisons following the collapse of Carillion in the same month. Departmental Overview 2018 This diagram shows red-amber-green ratings and life-time value of theMinistry’s projects by the Infrastructure and ProjectsAuthority, September 2017. Portfolio data, 2017, July 2018
6 OVERVIEW CONTENTS Exiting the European Union In March 2019 the United Kingdom is set to leave the European Union (EU). The UK government has instructed departments to make the necessary arrangements for EU Exit.
The Ministry’s main priorities for EU Exit set out in its Single Departmental Plan are to: ensureIn that March English law 2019and courts remainthe aUnited primary choice Kingdom for international is businesses; set to leave the European Union (EU). The UK The Justice Select Committee promote UK legal services abroad, including through the GREAT campaign; delivergovernment the best outcome from has EU Exit instructednegotiations – for citizens, departments families, businesses to and makethe the necessary arrangements for EU Exit. described the main EU Exit legal profession – and prepare for the UK’s independent trade policy and negotiations; challenges faced by the prepare the justice system for EU Exit; and foster innovation in the justice system, backing the UK to compete globally in taking the lead on cutting-edge opportunities. Ministry as: Workstreams continuing cooperation on In April 2018, the Department for Exiting the EU provided a summary of the workstreams underway to implement exit from the EU. • This stated that the Ministry has nine active workstreams relating to policies affected by leaving the EU. These cover understanding the impacts of EU Exit on the workload of courts and tribunals, criminal justice as closely fundamentalThe rightsMinistry’s issues related to main EU Exit and priorities legal services market for access EU post-EU Exit Exit. set out in its Single Departmental Plan are to: It also includes the future civil judicial cooperation with the EU to enable clear rules on the handling of cross-border disputes in civil, commercial, insolvency and family law matters. as possible; The government• ensure stated that that the Ministry English has developed law deliveryand planscourts for a range remain of negotiated a primaryand contingency choice outcomes andfor is internationalworking closely with other businesses; government departments where there are issues with significant cross-cutting interest, for example with the Home Office on criminal justice cooperation and with the Department for Business, Energy & Industrial Strategy on mutual recogni- • maintaining access to EU tion of qualifications. • promote UK legal services abroad, including through the GREAT campaign; regulations on inter‑state Funding commercial law in order to In March 2018,deliver HM Treasury the allocated best £17.3 million outcome to the Ministryfrom for EU exiting Exit the EU. negotiations – for citizens, families, businesses and the • protect the UK as a top-class The Justice Selectlegal Committee profession described the – main and EU Exit prepare challenges facedfor bythe the MinistryUK’s as: independent trade policy and negotiations; continuing cooperation on criminal justice as closely as possible; commercial law centre; maintaining accessprepare to EU regulations the justice on inter‑state system commercial for EU law in order Exit; to protect and the UK as a top-class commercial law centre; enabling• cross-border legal practice rights and opportunities while working to secure an effective post‑exit framework with the EU for resolving cross‑border commercial, civil and family disputes; and enabling cross-border retaining efficient mechanisms to resolve family law cases involving EU member states and the UK with mutual recognition and enforcement in family law that can be crucial in, for example, resolving • child •abduction foster cases with innovation appropriate haste. in the justice system, backing the UK to compete globally in taking the lead on cutting-edge opportunities. legal practice rights and opportunities while working to secure an effective post‑exit framework with the EU for resolving cross‑border Workstreams Funding commercial, civil and In April 2018, the Department for Exiting the EU provided a summary of the workstreams In March 2018, family disputes; and underway to implement exit from the EU. HM Treasury retaining efficient allocated • This stated that the Ministry has nine active workstreams relating to policies affected by leaving the EU. mechanisms to resolve £17.3 million These cover understanding the impacts of EU Exit on the workload of courts and tribunals, fundamental family law cases involving to the Ministry rights issues related to EU Exit and legal services market access post-EU Exit. EU member states and the for exiting UK with mutual recognition the EU. It also includes the future civil judicial cooperation with the EU to enable clear rules on the handling of and enforcement in family cross-border disputes in civil, commercial, insolvency and family law matters.
law that can be crucial Ministry of Justice | The government stated that the Ministry has developed delivery plans for a range of negotiated in, for example, resolving and contingency outcomes and is working closely with other government departments where there child abduction cases with are issues with significant cross-cutting interest, for example with the Home Office on criminal appropriate haste. justice cooperation and with the Department for Business, Energy & Industrial Strategy on mutual recognition of qualifications. Departmental Overview 2018
7 OVERVIEW CONTENTS Managing public money
The Ministry set a target to reduce its spending by around 15% to meet its Spending Review 2015 target by 2019-20. Total departmental expenditure, compared with the Spending Review 2015 estimate, to 2019-20 TheThe Ministry Ministry stated that the set Spending a target Review 2015 to was reduce based on better managing demand and being able to raise more revenue through charging for services. Both of which have been challengingTo fortal the departmental Ministry. expenditure (£ billions) Much ofits spending increase by since around 2015-16 covers 15% spending to on major reform programmes including courts, prisons and probation, which are expected to lead to significant savings. 8.0 meet its Spending Review 2015 2017-18 The Ministry is Thistarget graph shows by total 2019-20. departmental expenditure, compared with the Spending Review 2015 estimate, to 7.5 actual spending £1.5 billion above 2019-20. 7.0 7.3 6.9 7.2 7.2 meeting the 6.5 7.0 target set in 2015 6.5 6.0 Spending to reduce its 6.0 Review 2015 expenditure by spending target £500 million by 5.0 2019-2020.