Law Society talks with government secure major legal aid benefits

2 April 2008

The Law Society has today secured significant benefits for the civil legal aid system following robust negotiations with the Legal Services Commission (LSC) and the Ministry of Justice.

The Law Society had begun judicial review proceedings against the LSC in light of its inaction in response to the earlier Court of Appeal judgment.

Today's agreement ending that litigation will give many legal aid firms a much-needed period of stability and certainty in which to plan their futures.

The Law Society negotiations have secured the following:

·       an increase of 2% on all legal help fixed fees and underlying hourly rates from 01/07/08
·       care level 2 fee increases from £347 to £405
·       a 5% increase in CLR (controlled legal representation) fees and rates for mental health
·       a 5% increase in CLR fees and rates for immigration
·       a delay in implementing private law family litigators’ graduated fees
·       a closed list of all CLACS and CLANS (Community Legal Advice Centres and Networks) planned for the period ending April 2010

·       the LSC will, with effect from today, not seek to recoup historic unrecouped payments on account over six years old and where the amount outstanding is less than £20,000 – restrictions apply (details to appear on the Law Society website)

·       a new process on standard monthly payments, designed to prevent changes happening so often, so unpredictably and with such large variations

Other key features of the agreement include the LSC’s commitment to publish a route map setting out the outline of its proposals for the next five years, including a commitment that there will be no price competitive tendering for civil or family work before 2013.

Best value tendering (BVT) in criminal legal aid will be delayed by six months to a date not before July 2009

There will also be reviews of the contract compliance audit process and the operation of peer review and other quality assurance mechanisms.

Des Hudson, Law Society Chief Executive, says:

“Our talks with the LSC and the Ministry of Justice have not only helped ensure legal aid will receive vital financial support, they have also shown that we can work together in an effort to establish a more balanced system that is workable and accessible.”

“However, we still have serious concerns about the future of legal aid and welcome the LSC's commitment to a more open approach of better engagement with legal aid practitioners and the Society.”

“Legal aid is there to provide access to justice for those who cannot afford it, but the current round of reforms is causing significant damage to that principle. The more consultative approach embraced by the LSC will hopefully allow us to work with them to address some of the most pressing issues.”

“BVT is one area of legal aid we continue to have concerns about, so we look forward to working with the LSC and the Ministry on these matters in this new spirit of consultation. The Society will be announcing tomorrow plans for research into immigration and asylum, childcare and mental health services to inform work on the future of legal aid in those areas.”

Bill Montague, managing partner of Dexter Montague & Partners Solicitors, who jointly brought claims against the LSC with the Law Society last year, says:

"Today's settlement brokered by the Law Society marks a watershed in the relationship between legal aid practitioners and the LSC. The Society has achieved a deal which will benefit all CLS suppliers, at least in the short term."