Policy

3 April, 2008

LSC, Law Society and MoJ reach agreement on future of Unified Contract

Increase of 2% on 'fixed fees'

The Legal Services Commission (LSC), Law Society and Ministry of Justice (MoJ) announced yesterday that they have reached agreement on the best way forward following the Court of Appeal’s judgment in November 2007, on the Unified Contract.

The LSC and MoJ accept that the Court of Appeal found in favour of The Law Society’s arguments that Clause 13.1 of the Unified Contract did not comply with 2006 European regulations on public contracts. The Law Society has therefore agreed to discontinue further litigation.

As a result of this agreement, it is anticipated that the civil Unified Contract will run its course until April 2010. The LSC will be working with The Law Society and others on the likely content of future contracts over the next few months, with plans to undertake a full consultation later this year.

As part of the agreement, some of the concessions the LSC and MoJ have agreed to are - 

  • an increase of 2% on all legal help fixed fees and underlying hourly rates from 01.07.08
  • a 5% increase in controlled legal representation (CLR) fees and rates for mental health
  • a 5% increase in CLR fees and rates for immigration
  • a closed list of all Community Legal Advice Centres and Networks (CLACs) and (CLANs) planned for the period ending April 2010
  • not to introduce full implementation of best value tendering for mainstream civil legal aid services until 2013, with pilots proposed in some areas between 2010 and 2013
  • to make new arrangements in respect of historic unrecouped payments on account (meaning payments on account made at least six years ago) and where the amount outstanding is less than £20,000
  • to make new provisions for the reconciliation of Standard Monthly Payments (SMPs) designed to keep changes to a minimum

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

Welcoming the agreement, Carolyn Regan, Chief Executive of the LSC, said -

'The constructive nature of the recent negotiations between The Law Society, MoJ and LSC and the strong commitment from all to continue working collaboratively in the future is, in many ways, the most important outcome and signals a new way forward for all parties.

The Court of Appeal’s judgment will affect the contractual relationship between the LSC and providers in future.  Contracts need to be clear about the conditions that will apply throughout the term of the contract and amendment clauses cannot be too wide. This means that contracts are likely to be for shorter periods in future and each time new contracts are offered the procurement process will be open to new bidders, as well as existing contract holders.'

Des Hudson, Chief Executive of the Law Society also welcomed the announcement and added that -

'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.'

 
For more information see the MoJ press release Legal aid providers given certainty and stability for the future and the Law Society press release Law Society talks with government secure major legal aid benefits.

See also the related rightsnet policy news stories - 


   




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