Westminster update: Sentencing Bill debates amid prison reform pressures

Major changes to the anti-money laundering (AML) supervisory regime

The UK government announced the Financial Conduct Authority will be the single professional services supervisor for AML.

We warn that the move could increase costs, complexity and regulatory burdens on solicitors unless managed carefully.

Sentencing Bill: Commons debates reforms amid prison and probation pressures

The Sentencing Bill, which aims to reform sentencing practices in England and Wales, had its committee stage on Tuesday 21 October in the Commons.

The debate covered a range of proposed amendments and new clauses, addressing concerns about public safety, rehabilitation and the capacity of the justice system.

We briefed MPs on the urgent need to tackle prison overcrowding and the ineffectiveness of short-term custodial sentences.

We also raised practical concerns about the potential impact on legal aid of income reduction orders and prison disciplinary procedures.

During the debate, MPs discussed chronic capacity issues in the prison and probation systems and considered whether the Sentencing Bill’s measures could help reduce demand.

They debated suspended sentences, weighing the prison capacity crisis against potential risks to public safety.

This took place alongside broader discussions on whether punishment or rehabilitation would be more effective for deterring offending and re-offending.

The bill will now move to report stage and third reading on 29 October. We will continue to brief parliamentarians.

Terminally Ill Adults Bill: committee reviews safeguards, oversight and patient autonomy

The Terminally Ill Adults Committee held four sessions to review the Terminally Ill Adults (End of Life) Bill, ahead of the Committee of the Whole House on Tuesday 14 November.

Kim Leadbeater MP, who introduced the bill, and Lord Falconer, who sponsors it in the Lords, gave evidence on coercion, patient autonomy and the bill’s impact on palliative care.

Witnesses cited international examples and stressed the importance of hearing from those with lived experience.

Representatives from the Royal Colleges of General Practitioners, Physicians and Nursing welcomed the bill’s focus on autonomy but highlighted practical challenges, such as training, safeguarding and the need for a standalone assisted dying service.

They emphasised multidisciplinary assessments, face-to-face evaluations and clinician support to ensure safe implementation.

Later sessions focused on oversight of the bill.

Experts from the Royal College of Psychiatrists and the British Association of Social Workers raised concerns about consent procedures, capacity assessments and whether a three-member panel would be adequate.

They recommended holistic assessments, robust safeguards and independent review.

The final session, which included legal and coroner experts and the national director of patient safety for NHS England, focused on coronial oversight.

Witnesses warned that removing coroners from review of assisted deaths could weaken legal safeguards, make it harder to detect coercion or malpractice and undermine public confidence.

The committee’s discussions highlight the need for safeguards and multidisciplinary involvement to safely roll out the bill while respecting patient autonomy.

We will be giving evidence to the committee on 5 November.

Law Society gives evidence on inheritance tax to Finance Bill sub-committee

In an oral evidence session before the Lords Financial Bill Sub-Committee on Monday 20 October, Ian Bond, a member of our Wills and Equity Committee, set out the profession’s concerns on the government’s proposed inheritance tax (IHT) reforms.

Lord Liddle (Labour) began by asking about the extra burden the changes could place on personal representatives (PRs) when estates include pension assets.

Bond stated the added complexity and personal risk “is going to put a lot of people off from wanting to be professional personal representatives”.

Many estates, he explained, have no will in place, meaning PRs can find themselves unexpectedly responsible for managing an estate and facing significant personal liability.

Lord Leigh of Hurley (Conservative) asked about information sharing between pension schemes and PRs.

Bond welcomed improvements to the process but said it remains “a real challenge in practice”.

Pension scheme administrators often refuse to share details before probate is granted, even though PRs only have six months to calculate and pay IHT.

He warned that without a clear and standardised process for cooperation, PRs will face even tighter deadlines and greater pressure.

Lord Altrincham (Conservative) asked how easy it would be for those eligible for relief to understand the proposed changes.

Bond said the current six-month deadline simply isn’t enough to collect complex valuations for pensions, agricultural property or business assets.

He warned that rushed submissions could lead to mistakes, more work for HM Revenue and Customs and discourage professionals from taking on this work at all.

Senedd by-election: Labour loses Caerphilly

Labour lost an important by-election on Thursday 23 October for the Senedd seat of Caerphilly.

Plaid Cymru won the Welsh seat, marking the first loss in the area for Labour since it was created in 1999.

Plaid took 47% of the vote, with Reform coming second with 36% and Labour pushed into third place with 11% of the vote.

This marks a significant decline from 2021, when Labour received 46%.

The by-election also saw high turnout at 50%, higher than at the last election in 2021, suggesting voters were highly engaged in the campaign and made a concerted decision to swap party allegiance.

With the Senedd election taking place in May 2026, the by-election comes at an important moment.

It has given momentum to Plaid and Reform, while signaling to Labour the frustration with the party among its voters as it heads into what could be a difficult election next year.

The loss of the seat now means that the Welsh Labour government is two seats short of a majority.

It’s now holding discussions with opposition parties about how to get its spending plans passed by the Senedd.

Public Accounts Committee scrutinises legal aid system and LAA cyber attack

On Thursday 23 October, the Public Accounts Committee heard oral evidence from senior officials from the Ministry of Justice (MoJ), the Legal Aid Agency (LAA) and HM Prison and Probation Service (HMPPS) as part of its follow-up scrutiny of the justice system.

The session focused on the aftermath of the LAA data breach and the sustainability of legal aid.

The committee explored concerns around legal aid provision for vulnerable groups, with MoJ permanent secretary Dr Farrar explaining that client needs are now assessed early to tailor support and remote advice is often preferred.

Jane Harbottle of the LAA highlighted ongoing local monitoring and accessible services via the Civil Legal Advice helpline, including translation, British sign language and adapted formats.

MPs also raised issues regarding child protection risks in family courts where one party is a litigant in person.

Gemma Hewison, interim director of general policy, courts and access to justice at the MoJ, noted that support is available, including judicial guidance and online safeguarding checks, though no data on child protection risks has been collected.

The sustainability and value for money of legal aid were also addressed.

MoJ and LAA representatives acknowledged ongoing concerns and outlined measures such as a review of the legal aid system, increasing fees for housing and immigration legal aid, and initiatives to reduce legal aid deserts.

The system review is expected to be completed within the next three years, with consultations ongoing about the £92m annual allocation for criminal solicitors.

Finally, the committee examined the LAA cyber attack, discussing its causes, the extent of the data breach and plans for long-term system improvements.

Officials noted that the number of legal aid practitioners has remained largely stable, with some leaving and others joining.

They discussed the process for reclaiming contingency overpayments without addressing the unpaid administrative burden on providers during the breach.

Coming up

We are working closely with MPs and peers to influence a number of bills before Parliament:

• Border Security, Asylum and Immigration Bill will begin its report stage in the Lords on 28 October
• Children’s Wellbeing and Schools Bill will begin its report stage in the Lords on a date to be confirmed
• Crime and Policing Bill will begin a committee stage in the Lords on a date to be confirmed
• Employment Rights Bill will begin a consideration of Commons amendments in the Lords on 28 October
• Mental Health Bill will begin a consideration of Commons amendments on a date to be confirmed
• Planning and Infrastructure Bill will continue its report stage in the Lords, which began on 20 October
• Public Office (Accountability) Bill will begin its second reading in the Commons on 3 November
• Renters’ Rights Bill is awaiting Royal Assent
• Terminally Ill Adults (End of Life) Bill is being reviewed by a select committee, with its next session on 29 October
• Sentencing Bill will begin its report stage in the Commons on 29 October