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Pension changes deter would-be judges, says lord chief justice | Pension changes deter would-be judges, says lord chief justice |
(4 months later) | |
George Osborne’s decision to impose a £10,000 tax-free cap on pension contributions is deterring well-paid lawyers from becoming judges, the lord chief justice has said. | George Osborne’s decision to impose a £10,000 tax-free cap on pension contributions is deterring well-paid lawyers from becoming judges, the lord chief justice has said. |
Appearing before the House of Lords constitution committee, Lord Thomas said the move was having a very serious effect on judicial recruitment from an “immensely prosperous” profession. | Appearing before the House of Lords constitution committee, Lord Thomas said the move was having a very serious effect on judicial recruitment from an “immensely prosperous” profession. |
The cut in the £40,000-a-year cap for those earning more than £150,000 in last July’s budget had significantly reduced the financial attractiveness of posts on the bench compared with lucrative work in the private sector, he said. | The cut in the £40,000-a-year cap for those earning more than £150,000 in last July’s budget had significantly reduced the financial attractiveness of posts on the bench compared with lucrative work in the private sector, he said. |
Thomas said there was no doubt that the legal system was having difficulties recruiting and retaining judges, and the pension changes, coupled with relatively low pay and increasing volumes of work, were acting as “very substantial deterrents” to joining the bench. | Thomas said there was no doubt that the legal system was having difficulties recruiting and retaining judges, and the pension changes, coupled with relatively low pay and increasing volumes of work, were acting as “very substantial deterrents” to joining the bench. |
The disparity in pay between the private and public sectors had been magnified in recent years, he said, as London consolidated its place as the world’s pre-eminent legal centre. | The disparity in pay between the private and public sectors had been magnified in recent years, he said, as London consolidated its place as the world’s pre-eminent legal centre. |
“Last year was, I think, the most difficult in that the unintended effect of the decision of the chancellor of the exchequer to restrict tax relief on pensions to a maximum of £10,000 a year has had a very, very serious effect on the judiciary, particularly at the high court level and above, and to circuit judges,” Thomas said. | “Last year was, I think, the most difficult in that the unintended effect of the decision of the chancellor of the exchequer to restrict tax relief on pensions to a maximum of £10,000 a year has had a very, very serious effect on the judiciary, particularly at the high court level and above, and to circuit judges,” Thomas said. |
“The result is that a new high court judge will have a pension, at the end of the day, that is materially less than a district judge.” | “The result is that a new high court judge will have a pension, at the end of the day, that is materially less than a district judge.” |
“We are paid on the basis that we get a salary and we get a pension. But if you can’t take the pension because the fiscal effects are so large, you will get no compensation for that. | “We are paid on the basis that we get a salary and we get a pension. But if you can’t take the pension because the fiscal effects are so large, you will get no compensation for that. |
“The effect of the tax changes on the judiciary has been that what has been regarded always by people coming to the bench as a very important part of the remuneration package has, through fiscal means which I am sure were unintended, produced this effect.” | “The effect of the tax changes on the judiciary has been that what has been regarded always by people coming to the bench as a very important part of the remuneration package has, through fiscal means which I am sure were unintended, produced this effect.” |
The lord chief justice also said cuts to legal aid were forcing judges to take on a more inquisitorial role, particularly in civil cases where there are unrepresented claimants. | The lord chief justice also said cuts to legal aid were forcing judges to take on a more inquisitorial role, particularly in civil cases where there are unrepresented claimants. |
“It’s impossible to expect the adversarial system to work” when the citizen was not equipped to conduct their case and the state would not pay for legal aid, he said. | “It’s impossible to expect the adversarial system to work” when the citizen was not equipped to conduct their case and the state would not pay for legal aid, he said. |