This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Discover how courts in England and Wales decide compensation orders for victims of crime, including statutory framework, calculation of amounts, factors considered by judges, the role of evidence and the offender's means, and how compensation interacts with other financial penalties.
When someone is convicted of a crime in England and Wales, the criminal courts have the power to order that the offender pays compensation to the victim for personal injury, loss or damage resulting directly from the offence. These compensation orders are a form of financial redress that can either accompany another sentence (like a fine or community order) or stand alone as the principal disposal. They are a distinct part of the sentencing process and focus on restoring, as far as possible, the financial loss suffered by the victim.
This article explains how these orders are decided by the courts, covering the legal framework, the process of assessment, what courts must consider, how amounts are calculated, and what happens after an order is made. It is intended to help solicitors, students and members of the public understand the purpose and practical operation of compensation orders in the criminal justice system.
Legal Framework for Compensation Orders
Compensation orders arise under Chapter 2 of Part 7 of the Sentencing Code, primarily governed by sections 133–135 of the Sentencing Act 2020. They replace earlier provisions set out in the Powers of Criminal Courts (Sentencing) Act 2000, consolidating the law applicable to offences committed on or after 1 December 2020.
Both magistrates' courts and the Crown Court can make compensation orders. There is no statutory limit on the amount a court may order for offenders aged 18 or over, although magistrates' courts are limited to a maximum of £5,000 for offenders under 18.
When the Court Must Consider a Compensation Order
The court must consider making a compensation order in any case where personal injury, loss or damage has resulted from the offence. If the court decides not to make such an order in an appropriate case, it must give reasons for that decision.
Although the prosecutor will generally apply for compensation and provide evidence, the court is technically obliged to consider the order on its own initiative where the legal criteria are met.
What the Court Considers When Deciding on Compensation
1. Evidence of Loss or Damage
The court must be satisfied that the loss, damage or personal injury directly resulted from the offence. Compensation orders are intended for straightforward cases where the extent of loss can be quantified without complex inquiry.
Where evidence is incomplete or disputed, the court may hear witness evidence or adjourn sentencing to obtain further information so that a proper figure can be determined.
2. The Victim's Views
Victims have the right to be informed about court-ordered compensation and to provide evidence of loss, such as receipts or estimates. While the court must consider victims' views, it must also balance that against the offender's ability to pay.
3. Offender's Means and Ability to Pay
A central consideration in deciding both whether to make a compensation order and how much to award is the offender's financial means. The court must make enquiries into the offender's means and assess whether payment is realistic and likely to be made within a reasonable time.
The court will not base the decision on speculation that a third party will pay, and must be cautious about creating unrealistic debts that the offender cannot realistically discharge.
4. Other Sources of Compensation
The court should not take into account whether victims have other means of redress, such as a civil action or an award under the Criminal Injuries Compensation Scheme. This ensures that the court's decision on compensation focuses on the offence itself rather than on alternative routes for compensation.
How Compensation Amounts Are Calculated
The amount ordered is at the court's discretion, having regard to:
- evidence and representations from the prosecutor about the victim's loss;
- evidence from the offender about their financial position;
- any supporting documentation such as invoices, receipts or medical reports.
Compensation may cover:
- direct financial loss, such as cost of repair or replacement of property, loss of earnings or medical expenses;
- pain and suffering, including physical and psychological harm;
- other tangible consequences of the offence.
In situations where full evidence of loss is not available at sentencing, the court may make a reasonable estimate or grant an adjournment to obtain details, as long as this does not create undue delay.
Multiple Victims and Multiple Offences
Where multiple victims have suffered loss, the court must make a separate compensation order for each offence. However, if there are multiple offences against the same victim, the court can attach compensation to the most serious offence, avoiding duplication.
Priority and Interaction with Other Financial Orders
If an offender is also liable to pay other financial penalties - such as the victim surcharge, a fine or prosecution costs - compensation generally takes priority. That means the court may reduce other financial orders (such as the victim surcharge) if the offender's means are limited and ensure that compensation to the victim remains the primary concern.
Enforcement and Default
Once a compensation order is made, enforcement is managed by the magistrates' court. Failure to pay can lead to further criminal consequences, including imprisonment for default in certain circumstances.
Practical Example
For instance, if a person is convicted of an assault that causes injury and loss of earnings, the prosecutor may present evidence showing the cost of medical treatment and lost income. The defence would provide information on the offender's financial circumstances. The court would then weigh this information, require a realistic assessment of ability to pay, and decide on an appropriate compensation figure to be paid either as a lump sum or by instalments.
Key Takeaways
Compensation orders are an important tool in the criminal justice system of England and Wales to provide redress to victims for personal injury, loss or damage resulting from crime. The court must consider making a compensation order where the criteria are met, assess evidence of loss, respect victims' views, and carefully evaluate the offender's financial means. There is no fixed limit on compensation for adults, and orders take priority over other financial penalties where necessary. If the court declines to make an order in an appropriate case, it must give reasons.
