A West Midlands family legal aid firm has blamed delays in payment by the Legal Services Commission for forcing it into administration.

Jewels, founded in 1980 by sole director Mark Jewels (pictured), ceased trading on 28 December.

The Lexcel-accredited firm, which had offices in Stafford and Cannock and employed 30 people, including eight solicitors, is now in the hands of administrators Begbies Traynor.

Family legal aid accounted for 80% of Jewels’ work and it had been awarded a contract in the latest tender round. The firm also did conveyancing and probate.

Jewels told the Gazette that cashflow problems caused by a delay in payments received from the LSC and a bank’s unwillingness to extend its loan facility had led to closure. ‘We are owed around £250,000, mostly by the LSC. It’s the LSC’s slowness in paying that has led to the closure,’ he said.

At the time of closure, the firm had more than 1,000 cases open. Jewels said that some fee-earners have found new jobs and taken their cases with them, while other cases are being dispersed to local firms.

In 2003 Jewels was named family lawyer of the year by the Legal Aid Practitioners Group in recognition of his work dealing with complex children cases. Carol Storer, the LAPG’s director, said: ‘To lose a large firm who work to high standards is desperately sad for the clients, for the people in that area and for the dedicated members of that firm who will no longer provide the service.’

An LSC spokesman said: ‘We are sorry to learn that Jewels Solicitors have decided to go into administration and we are now working with the administrators to ensure the firm’s clients continue to get the help they need. With other providers in the area, we anticipate there will be no major impact on access to legal advice.’

He said that the firm had highlighted to its LSC contract manager only one bill that was outside the payment timescales. ‘That bill was for less than £6,000,’ he added.

Jewels said his experience was not unique. ‘On the grapevine I’ve heard of other firms in the same position and I wouldn’t be surprised to see others closing.’