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<p>There has not been a target for the collection of employment tribunal fees since
the introduction of such fees. The impact assessment for the introduction of fees
estimated that £10m of fee income would be generated annually. With new claim volumes
reducing in 2013/14, HM Courts & Tribunals Service (HMCTS) estimates fee income
will be approximately £9m in 2014/15.</p><p> </p><p>The fee income collected in each
quarter since July 2013 is:</p><table><tbody><tr><td rowspan="3"> </td><td colspan="4"><p>2013/14</p></td><td
colspan="2"><p>2014/15</p></td></tr><tr><td><p>Q1</p></td><td><p>Q2</p></td><td><p>Q3</p></td><td><p>Q4</p></td><td><p>Q1</p></td><td><p>Q2</p></td></tr><tr><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td></tr><tr><td><p>Fees
Collected</p></td><td><p>0</p></td><td><p>0.5</p></td><td><p>1.6</p></td><td><p>2.4</p></td><td><p>2.1</p></td><td><p>2.3</p></td></tr></tbody></table><p>
</p><p>It is not possible to separate out many costs of collection from the wider
costs of employment tribunals, which have fallen in 2013/14 and 2014/15. The estimated
running and support costs for administering the fee collection process in Employment
Tribunals are shown below:</p><p> </p><p> </p><p> </p><p> </p><table><tbody><tr><td
rowspan="3"> </td><td colspan="4"><p>2013/14</p></td><td colspan="2"><p>2014/15</p></td></tr><tr><td><p>Q1</p></td><td><p>Q2</p></td><td><p>Q3</p></td><td><p>Q4</p></td><td><p>Q1</p></td><td><p>Q2</p></td></tr><tr><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td><td><p>£m</p></td></tr><tr><td><p>Additional
ongoing BAU Costs</p></td><td><p>0</p></td><td><p>0.0</p></td><td><p>0.0</p></td><td><p>0.4<sup>1</sup></p></td><td><p>0.3</p></td><td><p>0.3</p></td></tr></tbody></table><p><em><sup>1</sup>In
practice staff costs in 2013/14 would have been incurred before quarter 4 with the
figures shown representing costs recorded to the relevant cost centres for the fee
collection teams. All IT costs in 2013/14 are included in the set up costs described
below.</em></p><p> </p><p>It is not possible to disaggregate the cost of establishing
new (and revising existing) IT systems to handle remission applications in the employment
tribunals system, from that work in relation to the systems for collecting fees. The
figure provided below is a combined total.</p><p> </p><p>The capital investment made
by HMCTS in respect of IT systems to support the collection of fee receipts and remission
applications across the employment tribunals system was £4.4m. A further £0.6m resource
was spent on the project to implement fees giving a total £5.0m project cost.</p><p>
</p><p>HMCTS estimates that £8.9m of fee income was collected from July 2013 to the
end of June 2014. The full cost of operating the employment tribunals for 2013/14
was £76.3m gross expenditure and £71.8m net of fee income, a reduction of £14.9m from
the £86.7m full cost of operating the employment tribunals for the year 2012 /13.</p><p>
</p><p>The sum collected in relation to employment tribunal fees for the period 2013-2014
is available from financial information relating to fees and charges, published by
HMCTS in its Annual Report and Accounts. The HMCTS Annual Report and Accounts for
2013-14 was published in June 2014 on the Ministry of Justice website and can be found
at: http://www.justice.gov.uk/publications/corporate-reports/hmcts.</p><p> </p><p>For
the period from April 2014 to 30 November 2014 HMCTS has received a gross total of
£5.8m in employment tribunal fees of which £1.4m has been forgone in fee remission,
leaving £4.4m in net fees.</p><p> </p><p>I expect to be in a position to publish more
detailed data on the number of remission applications made, and awards made, for the
employment tribunals and Employment Appeal Tribunal in the Tribunal and Gender Recognition
Certificate Statistics quarterly bulletin by the end of this financial year.</p><p>
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