Warning over lord chancellor's 'above-inflation legal aid fee increase'

A law firm that dropped legal action against the government over immigration and asylum legal aid fees has warned of fresh legal action if an ‘above and beyond inflation’ increase trailed to the national press fails to resolve the crisis.

It was reported in The Times today that Shabana Mahmood would announce a hefty increase this week. A ‘government source’ told the newspaper that legal aid cash would be increased ‘above and beyond’ inflation.

Asked if Mahmood will be announcing an above-inflation increase, a Ministry of Justice spokesperson told the Gazette: ‘The new government has inherited a justice system in crisis. We are committed to working with the legal profession to ensure the legal aid sector is on a sustainable footing, both now and in the future.

‘We have conducted a review of the civil legal aid system and are carefully considering options for reform, including for immigration and asylum cases.’

In September, Duncan Lewis dropped legal action against the government over fees for immigration and asylum work in September after being reassured that Mahmood would make a decision on rates by the end of November.

Duncan Lewis solicitor Jeremy Bloom told the Gazette that evidence put forward in the firm’s claim ‘showed the life or death consequences that lack of legal representation can have for people who need it, and that providers were refusing thousands of meritorious cases because they are unable to sustain the huge financial losses that are inevitable within the current fee scheme’.

While an above-inflation increase would be welcome, Bloom pointed out that rates of pay in immigration and asylum work have seen a real-terms cut of 48% since 1996, ‘so an increase that is above and beyond inflation would need to increase rates to a level that is around double what they are now’.

Bloom added: ‘The decision that is to be announced will need to cover all types of immigration and asylum controlled work, and it will need to be enough of an increase to allow providers to start taking these cases on again.

‘Any decision that fails to resolve the crisis in immigration and asylum legal aid may be susceptible to further challenge.’

Immigration and asylum was one of 11 contract areas of law explored as part of the major civil legal aid review commenced under the previous administration. Guidance provided by the ministry states that the government will report back on the review 'in the near future'.