Government plans to cut legal aid rates by at least 10% across the board from October will cause a ‘leap into unprofitability’ for firms, solicitors warned this week.
The warning comes as mayor of London Boris Johnson voiced concerns that ‘the majority’ of women who have been abused by partners will be unable to receive legal aid for family cases under the government’s proposals.
The Ministry of Justice has published a shortened consultation outlining its intention to push ahead with the broad fee cuts proposed in its legal aid green paper. The cuts, which will be brought in by statutory instrument in October, will see family and civil fees reduced by 10%, and criminal fees cut by up to 25%.
Lawyers have warned that the move will threaten the sustainability of firms, driving some out of business and reducing clients’ access to lawyers.
Law Society head of legal aid policy Richard Miller 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. Our members have an excellent knowledge of where there is scope for improvement, and the Law Society has previously suggested where efficiencies could be made without damaging access to justice.
‘Independent analysis carried out by Otterburn Legal Consulting predicted many suppliers will not survive the impact of these proposals. This would mean that even in those areas where the government intends to retain legal aid, in practice it may be impossible for people to find a lawyer willing and able to take on their case.’
David Emmerson, chair of Resolution’s legal aid committee, said: ‘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 firms have already taken all the action they can to reduce costs, as they have seen no fee increases for years, and cannot make more savings.
Carol Storer, director of the Legal Aid Practitioners Group, urged the government to think again, particularly in the light of fears expressed by the Legal Services Commission and the National Audit Office in their responses to the MoJ’s legal aid proposals.
An MoJ spokeswoman said the proposals were ‘sustainable’.
Meanwhile, Boris Johnson has submitted evidence to the public bill committee on the Legal Aid, Sentencing and Punishment of Offenders Bill, outlining concerns over the provisions relating to domestic violence.
Under the bill, access to legal aid in private family cases will only be available where there is ‘objective proof’ of domestic violence.
Johnson said: ‘Research tells us that, as with all forms of violence against women, there is significant under-reporting of domestic violence by victims. Therefore, the requirements for ongoing criminal proceedings or evidence of a referral to a multi-agency risk assessment conference as criteria for eligibility will make it impossible for the majority of women experiencing domestic violence to access legal aid.’
He said the evidential criteria should be widened to include ‘evidence from specialist domestic violence services, health, housing and social services’.
Last week the MoJ made a concession to extend the provision of legal aid in some immigration cases involving domestic violence.
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