Compensation Orders

Compensation orders are one of the more common ancillary orders made by the court when it sentences an offender.

The legislation pertaining to compensation orders is chapter 2 of the Sentencing Act 2020. In today's article I am going to give a very quick overview of the main provisions, so far as they are applicable in the Magistrates' Court.

There is no statutory maximum on the amount the court can order an adult offender to pay in terms of compensation. In the case of youths, the maximum is capped at £5,000.

Section 133 of the Act states that a compensation order requires an offender to pay compensation in relation to any injury, loss or damage incurred as a result of the index offence, or any other offences taken into consideration by the court.

Although generally outside the scope of the Magistrates' Court, such an order can also require an offender to make payments in respect of funeral expenses or bereavement when a person is killed as result of the offence.

Section 134 of the Act states that if the court makes a compensation order it must decide whether or not to deal with the offender in any other way. In other words, the court can sentence an offender to a standalone compensation order (possibly with no surcharge or costs, as explained later).

Section 135 at the Act requires the court to have regard to the offender's means when making a compensation order. It also states that if the court considers it appropriate to impose a fine in addition to a compensation order, it must give preference to the payment of compensation if considers that the offender is of limited means. The court can, however, impose both a fine and compensation order if it considers the offender has the means to pay both.

Section 42 of the Act allows the court to reduce the statutory surcharge (to nil if appropriate) if it is making a compensation order and is of the view that the offender has insufficient means to pay the surcharge as well.

In accordance with section 18 of the Prosecution of Offences Act 1985 costs are always at the discretion of the court. Whenever the court imposes any sort of financial penalty, it should not order the payment of costs unless, having considered all the circumstances, it thinks it is right to do so.

The prosecution will usually apply for compensation, but it is something the court always considers in cases of injury, loss or damage. The court can make an order whenever it sentences an offender, irrespective of whether there has been an application or not.

There are a few circumstances where it is not appropriate to make a compensation order - for example, if damage has already been made good by way of private arrangement. If an application has been made, the court must explain its reasons for declining to make an order.

If a person has suffered injury, loss or damage as a result of the commission of an offence, then it is only right that the offender foots the bill.

Payment of compensation is merely the right and decent thing to do - it does not constitute any sort of punishment on its own. For that reason I'm not a big fan of standalone compensation orders unless the offender has exceptionally challenging personal circumstances, or they have already had some other form of punishment (e.g. a few hours at the police station; injured them self during the commission of the offence etc).