The National Audit Office (pictured) warned the government that its legal aid reforms would threaten the sustainability of law firms before the Legal Aid, Sentencing and Punishment of Offenders Bill was published.
The news comes after the Gazette reported last week that the Legal Services Commission and NHS Litigation Authority had also warned the Ministry of Justice over the impact of its proposals.
In its response to the MoJ’s consultation on legal aid reform, the NAO expressed concerns over the effect of proposed fee cuts for criminal law work in magistrates’ courts.
It said: ‘We have previously observed a risk to the sustainability of the supplier base, arising from the fact that remuneration for legal aid work is often unfavourably compared to other legal work. Proposals such as these have the potential to increase the risk.’
The NAO also had concerns over the proposal to means test applicants who currently receive passporting benefits which make them automatically eligible for legal aid.
It said: ‘Gaining the supporting evidence for individuals is time-consuming and not necessarily an easy task… The implementation costs of this could outweigh the benefit of recouping costs from these applicants.’
Noting the observation from magistrates that the reintroduction of means testing had led to an increase in the number of defendants representing themselves in court, the NAO also advised the MoJ to consider the consequences of more litigants in person.
Law Society chief executive Desmond Hudson said he noted with concern the NAO’s warning of further destabilisation of criminal law firms, which is an issue the Society is also ‘extremely concerned’ about.
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