3Income reduction orders(1)

In the Sentencing Code, in Part 7 (financial orders and orders relating to property), after Chapter 4 insert—Chapter 5Income reduction orders

161AIncome reduction order(1)

In this Code “income reduction order” means an order under this Chapter that—

(a)

is made in respect of an offender for an offence, and

(b)

requires the offender, for the period in respect of which the order has effect, to pay such percentage of the offender’s excess monthly income as is determined by the court.

(2)

For the purposes of subsection (1)(b), “the offender’s excess monthly income” means such of the offender’s monthly income as exceeds an amount specified in regulations made by the Secretary of State.

(3)

For the purposes of subsection (2), “monthly income” means monthly income after deduction of such amounts as may be specified in the regulations.

(4)

The regulations may make further provision about how the court is to determine the offender’s monthly income.

(5)

The amount specified under subsection (2) must not be less than an amount equal to 170 times the hourly amount of the national minimum wage.

(6)

For further provision about determining the percentage of the offender’s excess monthly income payable under an income reduction order, see section 161B.

(7)

In this section “national minimum wage” means such single hourly rate as is for the time being specified in regulations under section 1(3) of the National Minimum Wage Act 1998.

161BDetermining the amount payable under an income reduction order(1)

The Secretary of State must by regulations make provision about how the court is to determine the percentage of the offender’s excess monthly income payable under an income reduction order.

(2)

Provision made by regulations under subsection (1) must secure that the percentage determined by the court does not exceed a specified percentage.

(3)

The percentage specified by virtue of subsection (2) must not exceed twenty per cent.

(4)

Provision made by virtue of subsection (1) may include provision for the percentage to depend on (among other things)—

(a)

the offence or offences committed;

(b)

how the offender is otherwise dealt with (including, where the offender is fined, the amount of the fine);

(c)

the age of the offender.

(5)

In this section, “specified” means specified in the regulations.

161CFurther provision about income reduction orders(1)

The Secretary of State may by regulations make such further provision about income reduction orders as the Secretary of State considers appropriate.

(2)

Regulations under subsection (1) may make provision about payments under an income reduction order including (among other things)—

(a)

provision about the form and manner in which payments must or may be made;

(b)

provision for payments to be made to a specified person, or a person of a specified description;

(c)

provision about the date by which, or period within which, payments must be made;

(d)

provision about interest on any unpaid amounts payable under an income reduction order.

(3)

Regulations under subsection (1) may—

(a)

make provision for monitoring compliance with income reduction orders;

(b)

make provision for the enforcement of income reduction orders, including provision about the recovery of any unpaid amounts under an income reduction order;

(c)

make provision about appeals.

(4)

The provision that may be made by virtue of subsection (3)(a)and (b) includes—

(a)

provision for a specified person, or a person of a specified description, to require the provision of documents or information;

(b)

provision for a specified person, or a person of a specified description, to require the offender to attend at a place and answer questions.

(5)

In this section, “specified” means specified in the regulations.

161DIncome reduction order: availability(1)

An income reduction order is available to a court by or before which an offender is convicted of an offence where—

(a)

the offence is committed on or after the date on which section 3 of the Sentencing Act 2026 comes fully into force,

(b)

the offender is aged at least 18 when convicted of the offence,

(c)

the court imposes a suspended sentence order in relation to—

(i)

the offence, or

(ii)

a combination of the offence and one or more offences associated with it, and

(d)

when the sentence is imposed—

(i)

the offender’s monthly income exceeds such amount as is specified in regulations under section 161A(2), or

(ii)

it appears to the court that the offender’s monthly income will exceed that amount during the operational period of the suspended sentence order.

(2)

The Secretary of State may, by regulations, make provision about circumstances in which a court may not make an income reduction order.

(3)

Where an income reduction order is available, the court may make such an order whether or not it also deals with the offender for the offence in any other way.

161EMaking an income reduction order(1)

An income reduction order must specify—

(a)

the percentage of the offender’s excess monthly income payable under the order,

(b)

the period for which the order has effect,

(c)

the date or dates by which payments under the order must be made, and

(d)

the person to whom payments under the order must be made.

(2)

The period for which the order has effect may not exceed the operational period of the suspended sentence order mentioned in section 161D(1)(c).

(3)

In determining—

(a)

whether to make an income reduction order against an offender, or

(b)

the percentage of the offender’s excess monthly income payable under the order,

the court must have regard to the offender’s means, so far as they appear or are known to the court.

(4)

Where the court considers—

(a)

that it would be appropriate to impose both an income reduction order and one or more of—

(i)

a compensation order,

(ii)

an unlawful profit order, or

(iii)

a slavery and trafficking reparation order, but

(b)

that the offender has insufficient means to pay both the income reduction order and appropriate amounts under such of those orders as it would be appropriate to make,

the court must give preference to such of the orders in paragraph (a)(i)to (iii) as it would be appropriate to make (though it may impose an income reduction order as well).

(5)

For the effect of proceedings in relation to confiscation orders on the court’s powers in relation to income reduction orders, see the following provisions of the Proceeds of Crime Act 2002—

(a)

section 13 (where confiscation order has been made);

(b)

section 15 (where proceedings on a confiscation order have been postponed).

(6)

In this section—

“the operational period” has the meaning given by section 288(2);

“slavery and trafficking reparation order” means an order under section 8 of the Modern Slavery Act 2015;

“unlawful profit order” means an unlawful profit order under section 4 of the Prevention of Social Housing Fraud Act 2013.

161FVariation or discharge of income reduction order(1)

An income reduction order may be varied or discharged by the court that made it if, on an application by a person within subsection (2), it appears to the court, having regard to any change in the circumstances since the order was made, to be appropriate to do so.

(2)

The persons are—

(a)

the offender;

(b)

an officer of a provider of probation services.

(3)

The power to vary an order includes power to decrease the percentage of the offender’s excess monthly income payable under the order.

(4)

But the court may not exercise the power in subsection (1) so as to increase the percentage payable under the order.

161GIncome reduction orders: supplementary(1)

In this Chapter—

“income” means income chargeable to income tax within the meaning of the Income Tax Acts;

“monthly income” has the meaning given by section 161A(3);

“the offender’s excess monthly income” has the meaning given by section 161A(2);

“primary legislation” means—

(a)

an Act of Parliament,

(b)

an Act of the Scottish Parliament,

(c)

a Measure or Act of Senedd Cymru, or

(d)

Northern Ireland legislation.

(2)

The Secretary of State may by regulations amend the definition of “income” in subsection (1).

(3)

Regulations under this Chapter may amend primary legislation.

(4)

Regulations under this Chapter are subject to the affirmative resolution procedure.

(2)

In Schedule 9 to the Administration of Justice Act 1970 (enforcement of orders for costs, compensation etc.), after paragraph 10 insert—10A

Where under Chapter 5 of Part 7 of the Sentencing Code a court makes an income reduction order.