The Committee raised a number of questions relating to its May 2004 recommendations on the Compensation Agency. These are addressed, in the order presented, below.

Targets for processing claims

What progress has been made in reviewing targets for processing claims under the new Tariff Scheme? (Recommendation 2, page 17)

  During 2004, the Agency has made progress in clearing the claims backlog, which was associated with the Tariff scheme's initial teething problems. In addressing the situation, the Agency has refined its operating practices, including: introducing an initial eligibility sift, re-structuring its administrative support and refining internal in-year targets. This has resulted in an increase in the throughput of cases, up from around 500 to 650 per month.

  In addition, the Agency has worked closely with NIO staff to develop new performance targets, focused on capturing activity and outcome data. The revised targets will be incorporated in the Agency's business plan for 2005-06.

Recovery of compensation

The result of a judicial review was awaited before the restrictions on recovery powers was to be taken forward. Are the Department and the Agency in a position to move forward yet? If so, can the Department say what progress has been made? (Recommendation 4, page 17)

  The judicial review referred to in the NIO's July update to the Committee is still in prospect. However, the nature of the request for judicial review has changed and it is now unclear as to whether this will proceed.

  The overall policy was re-visited earlier this year and, in the light of legal advice, the Agency has now alerted its staff to the dangers of fettering its discretion in this policy area. Such discretion enables staff, in exceptional cases and where there is a strong likelihood of success is obtaining a recovery order, to take steps to seek re-imbursement. In practice, the number of such cases arising in an individual year is expected to be very small.

The Committee has expressed great concern that child sex abuse victims were being unintentionally debarred from claiming compensation because of flaws in the law. The Department undertook to "again examine" the relevant legislation. What has been the result of the Department's examination? (Recommendation 5, page 15)

  A working group, chaired by a senior official, has been established and is progressing the review. Legal advice has been obtained from the NIO's Senior Legal Advisor and opinion from Junior Crown Counsel. Officials have also met Home Office officials and are seeking to scope the effect of the current legislation. This work should be completed over the next few months and the Minister would hope to be in a position to give the Committee advice on the review's outcome in the spring.

Can the Department update the Committee on the review into the Criminal Damage Compensation Scheme? Has the issue of providing cover for terrorist related incidents been explores with the insurance industry? (Recommendation 8, page 18)

  The review, inter alia, included discussions with the insurance industry. The review report, which is now being considered by Government, covers the possibility of a greater involvement of the industry in the coverage of terrorist cases. The Minister would hope to be in a position to give the Committee advice on the review's outcome once the Government has arrived at its conclusions on the way forward.

The Department in its response to the Committee has said that all compensation schemes were "currently under review". Are the Department able to share with the Committee the emerging results of that review? (Recommendation 11, page 18)

  The reviews have all reached their final stages and are the subject of discussion within Government. The Minister will be happy to share the reports and the Government's conclusions with the Committee at the end of this process.

Is the Department fully satisfied that the Agency's procedures for forecasting resources are robust and that the present forecast of financial resources for 2004-05 is realistic? (Recommendation 13, page 18)

  The Compensation Agency now has sufficient experience of the new Tariff scheme to enable it to more accurately forecast likely out-turns. The Agency's forecast of its resource expenditure for 2004-05 has been critically reviewed in both the August and December Monitoring rounds, and come in close to prediction. The Agency has further engaged with the NIO to ensure that there is a better corporate understanding of the determinants of the Agency's overall resource expenditure.