Annex E
LSC ACTUAL, AND
PROJECTED, COSTS
AND SAVINGS
| Year | Cash £ Million
| RAB £ Million | RAB: Non-intervention
| PSA7 savings (RAB) |
| 2000-01 | 88 | 58
| | |
| 2001-02 | 118 | 171
| | |
| 2002-03 | 161 | 250
| | |
| 2003-04 | 200 | 181
| | |
| 2004-05 | 199 | 113
| 227 | 114 |
| 2005-06 | 130 | 111
| 255 | 144 |
| 2006-07 | 109 | 109
| 287 | 178 |
| 2007-08 | 106 | 105
| 323 | 218 |
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The agreed LSC Corporate Target for 2004-05 for reducing
expenditure is to save £30 million of expenditure in 2004-05.
The driver behind this target was the need to control increasing
case costs and reduce total expenditure on asylum legal aid compared
to previous years. Therefore, the target is based on a comparison
between forecasted actual expenditure and a projection of what
spend would have been if intake had remained at the 2003-04 level,
if the legal aid reform package had not been introduced in April
2004, and thus average case costs had continued to rise at the
rate of 12.5% (non-intervened model). The target is based around
committed resource and not cash.
The initial higher cash spend is a necessary short-term investment
to speed up the asylum process, limit work that is allowed on
cases with limited merit and improve quality. This creates immediate
resource saving sand longer term cash savings.
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