Practitioners have condemned as ‘outrageous’ government proposals to cap payments for acquitted defendants’ legal costs that would leave innocent people out of pocket.

The Ministry of Justice (MoJ) last week published a consultation on reform to the system of reimbursing the legal costs of people acquitted after paying privately for defence lawyers.

The change would limit reimbursements to the legal aid rate, which could be as little as one third of what they had paid.

The MoJ also launched a consultation with the Legal Services Commission on eligibility for legal aid in the Crown Court. Under proposals to be piloted in five court areas, defendants found guilty and who failed a means test will have to pay for, or contribute to, their defence costs.

Rodney Warren, director of the Criminal Law Solicitors Association, said there was no problem in principle with making those who could afford to, pay, provided the means test was fixed appropriately.

Proposals for central funds reform met a more hostile response. Tan Ikram, outgoing chairman of the London Criminal Courts Solicitors Association, said: ‘This is outrageous. Defendants don’t choose to be party to criminal proceedings. Why should innocent people be left out of pocket because the state has wrongly brought proceedings against them?’

Andrew Caplan, chairman of the Law Society’s access to justice committee, said an individual unsuccessfully prosecuted by the state should never be penalised in costs.

Richard Miller, head of legal aid at the Law Society, warned the proposal could lead to an increase in the number of unrepresented defendants.