The recent increase in court fees, effective as of 1 May, has caused concern among various organizations and individuals, including Money Wellness, a commission providing free debt help. According to Money Wellness, this rise in fees may put vulnerable individuals at risk of violence.
One of the main concerns is that anyone who is granted an insolvency solution due to their inability to repay debts has their personal information, including their address, listed in a public insolvency register. This poses a significant danger to domestic abuse survivors and others at risk of violence, as their aggressors may have access to this information. To protect their anonymity, individuals can request for their address to be withheld from the register, but this comes at a cost.
Previously, the fee for this request was £280. However, with the recent increase in court fees, the cost has now risen to £308. Sebrina McCullough, director of external relations at Money Wellness, states that this increase in fees has resulted in a dangerous situation for survivors, as they may have to delay their insolvency applications while they save up the fee to protect their anonymity.
McCullough also highlights the unfairness of the situation, stating, “We shouldn’t be forcing domestic violence survivors to jump through hoops.” She further adds, “Expecting vulnerable individuals who are already experiencing extreme financial problems to find over £300 seems at best unrealistic and at worst cruel.”
Money Wellness has helped two individuals where personal safety was a concern. Customer A, who had fled a violent relationship, was advised to apply for a Person at Risk of Violence (PARV) order before completing an application for a debt relief order (DRO). However, due to the urgent need to sort out their finances, Customer A had to continue with the DRO application, risking their details being found by their aggressor as they were unable to raise the £308 fee for the PARV order.
Another customer, Customer B, had to be removed from their previous residence and rehoused due to concerns for their safety. Their application for a DRO has been put on hold as they have to first raise the £308 fee for a PARV order. This has resulted in their financial situation not improving until they can afford the fee.
Money Wellness is calling on the government to drop the PARV fee, as it poses a significant barrier for vulnerable individuals seeking to protect their anonymity and financial stability. In some cases, the fee may be waived if applicants meet certain income-related criteria. However, this is not always the case, and many are facing the difficult choice of risking their safety or struggling to gather the funds for the fee.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.