Criminals to face paying court charges.

What Financial Orders Can a Criminal Court Impose?

A person convicted of a criminal offence may be ordered to make several different payments. These can include a fine imposed as punishment, compensation for a victim, a statutory surcharge and a contribution towards the prosecution's costs.

These payments have different purposes and are calculated under different rules. A defendant may therefore receive more than one financial order as part of the same sentence.

What Happened to the Criminal Courts Charge?

The criminal courts charge was introduced in April 2015. It required adult defendants convicted of an offence to pay a fixed amount towards the cost of the criminal courts.

The amount depended largely on how the case concluded. A defendant who pleaded guilty generally paid less than someone who was convicted following a trial.

The charge was criticised because courts had little discretion, the defendant's financial circumstances were not properly reflected, and the difference between the guilty-plea and trial charges risked placing pressure on defendants to plead guilty.

The government stopped imposing the charge from 24 December 2015. It is therefore no longer added to sentences for current offences.

Can a Court Still Order a Defendant to Pay Costs?

Yes. A court may order a convicted defendant to contribute towards the reasonable costs incurred by the prosecutor.

Prosecution costs are different from the former criminal courts charge. They contribute towards the cost of bringing the prosecution rather than the general cost of operating the court system.

The court must decide what amount is just and reasonable. It should consider:

• The work reasonably undertaken by the prosecution
• The type and length of the proceedings
• Whether the defendant pleaded guilty or was convicted after trial
• The defendant's financial circumstances
• The other financial orders being imposed

A costs order should not be used as an additional punishment. The amount may be reduced where the defendant has limited means or faces a substantial fine or compensation order.

What Do Prosecution Costs Cover?

Prosecution costs can include reasonable expenses associated with preparing and presenting the case.

Where the Crown Prosecution Service brings the case, the order does not normally include the police's cost of investigating the offence. Different considerations may apply to prosecutions brought by local authorities, regulators or private prosecutors.

The prosecutor may provide the court with a schedule or guideline figure. The court is not required to award the full amount requested.

What Is a Fine?

A fine is a criminal sentence intended to punish the offender.

The amount is normally based on:

• The seriousness of the offence
• The offender's culpability
• The harm caused or risked
• The offender's income and financial circumstances
• Any guilty-plea reduction
• Relevant sentencing guidelines

For many offences, the court identifies a fine band expressed as a percentage of the offender's relevant weekly income.

A defendant will usually be asked to provide accurate information about income, benefits, savings and financial commitments. Where reliable information is not provided, the court may calculate the fine using an assumed income.

Does Pleading Guilty Reduce the Fine?

A guilty plea can reduce the sentence, including the amount of a fine.

The greatest reduction is usually available where the defendant indicates a guilty plea at the first reasonable opportunity. The reduction becomes smaller where the plea is entered later.

A defendant should not plead guilty to an offence they did not commit merely to obtain a discount or avoid costs. Anyone uncertain about the evidence, available defences or likely sentence should obtain advice from a criminal solicitor.

What Is a Compensation Order?

A compensation order requires an offender to pay money for personal injury, loss or damage caused by the offence.

Compensation may cover matters such as:

• Physical or psychological injury
• property damage
• Stolen property that has not been recovered
• Medical or treatment expenses
• Loss of earnings
• Funeral expenses or bereavement losses in appropriate cases

The court should consider making compensation where a victim has suffered injury, loss or damage. The amount will depend on the available evidence and the offender's ability to pay.

Does Compensation Take Priority?

Where the offender cannot afford to pay every financial order in full, compensation for the victim will generally be given priority over a fine.

The court may reduce a fine or costs order so that compensation can be paid. However, the amount awarded may still be less than the victim's complete loss where the offender has limited means.

A criminal compensation order does not necessarily prevent the victim from considering a separate civil claim, although any payment already received would be taken into account.

What Is the Victim Surcharge?

The surcharge, often called the victim surcharge, is a statutory payment imposed on most offenders following conviction.

The money is used to fund services supporting victims and witnesses. It is not usually paid directly to the individual victim in the case.

The amount depends on:

• The date of the offence
• The offender's age
• The type of sentence imposed
• The amount of any fine
• Whether the offender is an individual or an organisation

Where the sentence is a fine, the surcharge is generally calculated as a percentage of the fine, subject to statutory minimum and maximum amounts.

Is the Victim Surcharge Means Tested?

The court is normally required to impose the surcharge and has limited discretion to reduce or remove it because of financial hardship.

The defendant's means may, however, affect the payment terms and the calculation of other financial orders, particularly the fine and prosecution costs.

Confiscation Orders

A confiscation order may be made under the Proceeds of Crime Act 2002 where an offender has benefited financially from criminal conduct.

The purpose is to recover the benefit obtained from crime rather than to punish the offender for the offence itself.

The court may examine:

• The benefit obtained through criminal activity
• The offender's available assets
• Property held by another person
• Gifts or transfers made to avoid recovery
• Whether the offender has a criminal lifestyle for the legislation

Confiscation proceedings can involve substantial sums and complex assumptions about income and property. A default prison term may be imposed if the order is not paid, although serving that term does not normally cancel the debt.

Other Financial Orders

Depending on the offence, a court may also make orders involving:

• Restitution of stolen property
• Payment of financial investigation or enforcement costs
• Deprivation or forfeiture of property used in crime
• Disqualification or regulatory consequences
• Repayment following benefit or tax fraud

Companies and other organisations may receive substantial fines, particularly for health and safety, environmental, financial or regulatory offences.

How Does the Court Consider Ability to Pay?

Before imposing financial orders, the court should consider the offender's means.

Relevant information can include:

• Employment income
• Benefits and pensions
• Regular household expenses
• Debts and financial commitments
• Savings and property
• Other outstanding court orders

The offender must provide truthful and complete financial information. Giving false information or failing to disclose assets can lead to further legal consequences.

Payment by Instalments

A court may allow financial orders to be paid by instalments where immediate payment is unrealistic.

The payment rate should reflect the offender's means while ensuring that the order is discharged within a reasonable period. The offender should contact the fines office promptly if their financial circumstances change.

Ignoring an order or allowing payments to fall into arrears can lead to enforcement action.

What Happens If a Court Order Is Not Paid?

Unpaid fines, compensation, costs and surcharges can be enforced by the court.

Enforcement measures may include:

• Deductions from wages
• Deductions from benefits
• Enforcement against money held in an account
• Registration of the debt
• Use of enforcement agents
• Seizure and sale of goods
• Further court hearings
• Imprisonment in serious cases of wilful refusal or culpable neglect

A person who genuinely cannot meet the payment terms should contact the court rather than stop paying.

Can the Court Imprison Someone for Non-Payment?

Imprisonment for non-payment is generally a last resort.

The court should consider whether the failure resulted from a genuine inability to pay or from deliberate refusal or neglect. Alternative enforcement measures will normally be considered first.

Different rules can apply to confiscation orders and other substantial financial orders where a default term was fixed when the order was made.

Costs After an Acquittal

A defendant who is acquitted may in some circumstances apply for a defendant's costs order.

Recovery is subject to statutory rules and may be limited, particularly where the defendant paid privately for legal representation.

An acquitted defendant should obtain advice about whether an application is available and what expenses may be recovered.

Legal Aid and Defence Costs

Criminal legal aid may be available depending on the seriousness of the case, the interests of justice and the defendant's financial circumstances.

In the Crown Court, some defendants may be required to make contributions towards the cost of legally aided representation. Further payment may be required following conviction where the defendant has sufficient capital or assets.

Legal aid contributions are separate from fines, compensation, prosecution costs and the victim surcharge.

Should Offenders Pay the Full Cost of Their Trial?

There is a legitimate public interest in requiring offenders to contribute towards the consequences of their offending. However, a fixed charge unrelated to means or the circumstances of the case can create practical and fairness concerns.

The former criminal courts charge demonstrated the risks of imposing mandatory amounts which courts could not properly adjust. It created substantial debts for offenders with little ability to pay and raised concern that defendants might feel pressured to plead guilty to avoid a higher charge.

The current approach gives courts greater ability to balance punishment, victim compensation, prosecution costs and the offender's means.

Obtaining Legal Advice

A defendant should obtain advice before entering a plea and should ensure that the court receives accurate information about their financial circumstances.

A criminal defence solicitor can advise about:

• The strength of the prosecution case
• Available defences
• Credit for a guilty plea
• Likely fines and financial orders
• Applications for compensation or prosecution costs
• Confiscation proceedings
• Enforcement of unpaid orders

Important Information

Solicitors.com is not a firm of solicitors. This article is provided for general information only and does not constitute legal or financial advice. Sentencing rules, surcharge amounts and court procedures may change, and their application will depend on the individual circumstances. You should seek advice from a suitably qualified criminal solicitor before taking or refraining from action.