Legal News
Stark warning made over Legal Aid proposals
19/09/2011
Solicitors have warned that plans by the Government to cut legal aid rates by at least 10% from October could lead many firms to the brink of closure.
A shortened consultation has been published by the Ministry of Justice outlining its intention to push ahead with the fee cuts proposed in its legal aid green paper.
Under the plans, family and civil fees will be reduced by 10%, and criminal fees by up top 25%.
The cut has been criticised by Richard Miller, the head of legal aid policy at the Law Society.
He said: “There is an irreducible cost of delivering services, and the way to save money is to cut the amount of time lawyers have to spend on cases by improving efficiency within the justice system.
“Independent analysis carried out by Otterburn Legal Consulting predicted many suppliers will not survive the impact of these proposals.”
David Emmerson, chair of Resolution’s legal aid committee echoed the sentiments felt by many in the industry.
“A cut of 10% for most firms represents a leap into unprofitability. Most legal aid firms work on a margin of less than 10%.
“The concern is that these cuts will plunge firms into difficulty. They will inevitably lead to redundancies and firm or department closures.”
Emmerson said many firms have already taken all the action they can to cut costs, and with no fee increases in the past few years, the sustainability of firms and clients’ access to lawyers will be threatened.
In the light of fears expressed by the Legal Services Commission and the National Audit Office in their responses to the proposals, Carol Storer, director of the Legal Aid Practitioners Group has urged the Government to think again.
Meanwhile, London Mayor Boris Johnson is calling for changes to be made to the Legal Aid, Sentencing and Punishment of Offenders Bill in relation to the provisions relating to domestic violence.
Mr Johnson has voiced concerns that “many women” who have been abused by partners will be unable to receive legal aid for family cases under the Government’s proposals.
He has submitted evidence to the public bill committee on the Legal Aid bill.
