Policy

3 October, 2007

LSC criminal contract changes delayed until January 2008

But civil fixed fees go ahead as planned

Changes to the criminal legal aid contracts, including fixed fees for police station work, which were due to begin from October 2007 have been delayed until January 2008. This is as a result of the judicial review brought by the Law Society which successfully challenged the contract amendment clause. In response, the Legal Services Commission (LSC) decided to terminate all criminal contracts from January 13 2008 and to run a tendering process for contracts including the changes.

However, fixed fees in civil legal aid cases came into effect on 1 October 2007 as planned, despite almost unanimous opposition from legal aid firms and the not for profit (NfP) sector.

Many providers argue that there is a direct link between the time spent on a case and a successful outcome for the client; they believe that the time taken on a case should be left to their professional judgement. Other providers are more pragmatic; although not against fixed fees in principle, argue that the amounts set by the LSC are too low. The one thing that the majority agree on is that the introduction of the new regime will be detrimental to clients.

Richard Jenner, Director of Advice Services Alliance said -

'Agencies that are geared towards doing many straightforward cases will be fine. Our concern is those agencies that undertake complex cases and/or cases for clients with language difficulties, disabilities or other special needs are going to struggle.'

The Law Society has expressed fears that many solicitor firms and NfP agencies will be forced to withdraw from providing such services due to the cut in income. Commenting on this point, Richard Miller, Head of Legal Aid at the Law Society said -

'This will make it even more difficult for vulnerable clients to get the services they need. The impact is likely to be felt especially hard in London, where the majority of providers will see a cut in their already inadequate fees for this work.'

In response, Crispin Passmore, Head of the Community Legal Service said -

'I do not accept the argument that fixed fees will reduce services for clients. Some turnover of firms is inevitable and has always happened. Any money saved by them giving up legal aid work will stay in the system and be redistributed to other suppliers via open bidding rounds.'

For more information, see the LAG press release Criminal contract changes delayed, but civil fixed fees begin.

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