Select Committee on Constitutional Affairs Written Evidence


Evidence submitted by Citizens Advice Bureau (LAR 170)

1.  INTRODUCTION

  1.1  Citizens Advice is the national body for Citizens Advice Bureaux in England, Wales and Northern Ireland. The CAB service is the largest independent network of free advice centres in Europe, with 496 main bureaux in England, Wales and Northern Ireland. Bureaux provide advice from over 3,200 outlets, including county and magistrates' courts, prisons, GP surgeries and hospitals, probation services and prisons. All CABx are registered charities. We aim to provide free, impartial, confidential and independent advice to local communities.

  1.2  The CAB service has twin equal aims:

    —  To ensure that individuals do not suffer through a lack of information about their rights, and equally.

    —  To exercise a responsible influence on the development of policies and practices, both at a local and national level.

  1.3  In 2005-06, Citizens Advice Bureaux in England and Wales dealt with 5.2 million enquiries, including 1.5 million on benefits, 1.4 million on debt, 400,000 on housing, 473,000 on housing and nearly 300,000 relating to legal issues.

  1.4  In the current financial year, over 250 bureaux in England and Wales hold legal aid contracts providing over 600,000 casework hours in debt, welfare benefits, housing, employment, immigration, community care or mental health.

2.  BACKGROUND

  2.1  The review was established to consider delivery options for the Government's vision, set out in A Fairer Deal for Legal Aid, in procuring publicly funded legal services. The expected outcome was to a "plan" or "route map" for delivering a procurement system that achieves maximum value for money and control over spending whilst ensuring quality and the fairness of the justice system. We believe that the outcomes of the review which proposes a wholesale shift to a market based system of fixed prices have been a missed opportunity to identify best practice, and more imaginative approaches to the delivery of publicly funded legal services in the community.

  2.2  Whilst we welcome some aspects of Lord Carter's report, we consider that this is a missed opportunity for a more systemic review of publicly funded legal services, with respect to promoting the sustainability, quality and accessibility of legal services for the most vulnerable groups. Firstly, the review has a clear emphasis on the costs and delivery of the Criminal Defence Service. Whilst recognising the disproportionate costs of criminal defence, it is important to appreciate that public funding for both the criminal and civil justice systems needs to work as a whole, and be supported by effective advice and prevention strategies. A whole systems approach is needed to avoid driving a wedge in legal aid between criminal and non-criminal matters. Indeed little, if any reference is made to the complementary sources of public funding for civil legal advice and support, and to how these could strategically rationalised and developed to produce best value.

  2.3  More crucially though, the important principle of "equality of arms" (article 6, Human Rights Act) has not been considered with respect to procurement of legal services from the public purse. Other parties, such as local authorities legal and enforcement arms, will not experience the same constraints on their casework imposed on legal representatives funded by fixed fees. Indeed, if the overarching purpose of the Carter reforms is to establish reasonable ceilings over rising legal costs and services procured by the state, it needs to be remembered that government department, agencies, NHS trusts and local authorities all employ legal professionals at commercial rates in defending legal actions commenced against the state or pursuing citizens over their legal responsibilities. Yet it is only those service providers working with weaker parties—debtors, socially excluded clients, domestic violence victims, the homeless, and those at threat of criminal sanctions—who are subjected to this new procurement regime.

  2.4  Finally, we consider that there has been a significant misunderstanding of clients' experiences and delivery issues in specific sectors. Assumptions have been made throughout about the cost drivers in certain types of legal work, but no evidence or research has been presented to back these assumptions. We therefore welcome that the Constitutional Affairs Select Committee is considering these issues.

  2.5  We now consider the committee inquiry's terms of reference.

3  IMPACT ON THE JUSTICE SYSTEM

  3.1  Ensuring that there is a commitment to efficiency within all elements of the justice system is essential. There are many factors that impact on the cost of delivering legal aid and the LSC and the DCA must acknowledge that a number of these are not within the control of providers but are managed by other participants in the judicial system. While judges clearly have a part to play in this process through management of trials there are others. For example the way in which prisoners are taken to court and the delays that can occur as a result of prosecution witnesses not being available need to be tackled.

  3.2  It is also important that all participants in the justice process have incentives to work efficiently. The LSC proposals, inspired by Lord Carter, place demands on providers which will mean that they will have to look to keep costs to a minimum—but the same cannot always be said of advocates representing local authorities, government departments and others who will not be working within the confines of a fixed fee.

4  PROPORTIONALITY IN EFFECT ON PROVIDERS

  4.1  We have major concerns about the impact on not for profit providers. Traditionally, civil legal aid has been understood as a public service. A key aspect of legal aid reform over the past decade has been the introduction of contracting with non-solicitor advice providers in the Not for Profit Sector. Public service delivery from the voluntary or "third" sector is now very much an established part of the government's agenda for the delivery of services, especially for "hard to reach" groups. This approach to service delivery attracts widespread support across the political spectrum due to the expertise, innovative techniques, and community ties offered by the voluntary sector, which are not always available readily available to public bodies or private business contractors. However, it is also well recognised that the voluntary sector operates in a climate of endemic insecurity. Voluntary sector organisations face challenges in managing risk and delivering the value of their expertise in a public policy context. In studies undertaken by ACEVO, it was found that:

    —  92% of respondents from the VCS had public service contracts of one year or less, although two to five years is considered to be the minimum time needed to have an impact;

    —  86% said problems with the current funding regimes were adversely affecting the services they offer to users; and

    —  81% said funding regimes hindered their organisations' ability to plan for the future.

  4.2  Challenges posed by additional costs and risks incurred by the voluntary sector are increasingly recognised as having potential long-term implications. Before the last general election, Alan Milburn, then Cabinet Office Minister, identified the key problem of a "vicious cycle that limits the voluntary sector's ability to deliver as the sector ends up chasing dozens of short-term funding streams, rather than investing in staff development and service improvement", thus in turn government agencies become "nervous about contracts with organisations that lack capacity. They then want voluntary organisations and charities to account for every penny, micromanaging the relationship and clawing back resources whenever they can. In turn, this keeps capacity in the sector down, preventing it from moving up." Picking up on ideas from prominent voluntary sector leaders, Alan Milburn argued that there needed to be a step change in procurement policy—contracts should be more long term which "could have the potential to lever into the voluntary sector significant additional resources. A voluntary sector equivalent of the private finance initiative—VFI alongside PFI—becomes possible when organisations can borrow from the markets against the long-term contracts they receive... It is this model that should be taken forward in Labour's manifesto for a third term."

  4.3  The Treasury have also recognised the "added value" for the government of contracting with the voluntary sector for the delivery of public services. This agenda became integral to Sir Peter Gershon's review of public sector efficiency, and cross-cutting work on the role of the voluntary sector was commissioned. In turn, this led to the Treasury stating in that; "Funders should recognise that it is legitimate for providers to include the relevant elements of overheads in their cost estimates before providing a given service under service agreement or contract."

  4.4  It is therefore disappointing to note that Lord Carter does not include the NfP sector in his recommendations. If NfPs and solicitors are to work to the same contracts and compete on a level playing field then it seems essential that NfPs can access a fund similar to that for solicitors. Many NfPs will need to restructure to ensure that they remain competitive and can deliver the service that the LSC wants to buy. For example they may want to work with other providers across much larger geographical locations, offering more categories of law. Setting up these arrangements or separate entities that can run these services will require time and resources. Although the NfP sector does have a range of funds that it can access the reality is that there is not an equivalent charitable source that could fulfil this role.

  4.5  Another significant development has been the central role of the "voluntary sector compact." Brokered by the Home Office's Active Communities Unit on behalf of all government departments, the compact remains probably the most central and earliest initiative by the Labour government to change the relationship between the state and the voluntary sector. In the compact, Government promises to respect and support the independence of voluntary and community organisations. It effectively gives the VCS rights that include:

    —  The right to be consulted on new policies that may affect demands on services.

    —  The right for the impact on the sector to be assessed when developing new policies (especially Regulatory Impact Assessments).

    —  The right to fair access to funding, including adequate notice of new funding opportunities or changes in funding.

    —  The right to campaign and comment on Government policy even though the VCS receive funding from Government.

    —  The right to be properly funded for the work the VCS does for Government.

  4.6  It is therefore particularly worrying that the regulatory impact assessment to the DCA proposals set out in "A Sustainable Future" states that "We have modelled the impact of NFP organisations moving to the TFF Replacement Scheme if fees are set on a national basis and our preliminary analysis suggests that if NfPs do not increase the numbers of matters undertaken, 92% will experience significant decreases in their publicly funded income, and the total spend with the sector in the categories of work covered will reduce by 50% (£21 million)."

  4.7  The compact's funding Code of Practice clearly recognised the importance of public funders budgeting for core management and administration costs, which could be identified through "multi-year strategic funding", and other that other funding methods such as project, partnership or development funding, should have appropriate core cost contributions. The reality though is that the procurement of publicly funded advice and legal services from the voluntary sector has followed a very different model. Many agencies report that they are effectively subsidising their legal services contracts, and there has been widespread concern about the unnecessary and sometimes wasteful micro-management.

5.  IMPACT OF FIXED FEES

  5.1  For specialist legal advice, the LSC proposes to pay a fixed fee per case and is consulting on whether to fix fees on a national or regional basis. It aims ultimately to pay fees fixed nationally, and use the money saved, particularly in London where average fees are higher, to fund services in areas where there is less provision. Serious concerns have been raised about these proposals.

  5.2  Providers fear that the levels of fixed fees are inadequate and will drive them out of business. Lord Carter has indicated the not for profit sector could lose up to 50% of its funding under LSC contracts, and an on-line survey conducted by the Law Society indicated that 95% of the solicitors who responded thought that the proposals would result in the work not being viable.

  5.3  It is feared these proposals will impact most on the most vulnerable clients, such as those who have mental health problems, language problems, or disabilities, which mean that advising them is more time consuming, and those who have the most complex cases. The proposals do not allow enough flexibility for complex cases. For a case to be categorised as "exceptional" and paid at an hourly rate, it has to take four times as long as usual. This seems an unreasonably high test to meet. It may not be economic for solicitors and advisers to take on cases which will involve extra work that they will not get paid for. Neither Lord Carter nor the LSC has researched why some cases take longer than others, so the LSC does not have the information it needs to structure the scheme in a fair way.

  5.4  We now turn to the key questions posed by the committee in its inquiry.

6.  IS THERE A NEED TO MODERNISE THE PROCUREMENT OF LEGAL AID?

  6.1  We consider that there is certainly scope for improvement and innovation in the procurement of legal aid. The procurement scheme that has developed following the implementation of the Access to Justice Act 1999 has proven to be overly bureaucratic, and focussed on micro-managing inputs in stark contrast to more modern procurement methods which focus on quality and outcomes. Research has demonstrated that everyday legal problems are rarely experienced within the narrow silos of legal aid categories; rather they involve numerous issues of basic social well-being, and commonly those with unmet legal needs experience issues with the civil law as "problem clusters".

  6.2  This points to the clear need and priority for delivering advice and representation services in a holistic model; that social welfare law advocacy, independent advice, and other statutory and voluntary sector services should be delivered in a joined up process. There is much talk of the need for "one stop shops", "triage services", "seamless service delivery" etc, and the LSC now wants to see service providers and different specialists operating as Community Legal Advice Centres or Networks—in fact this is precisely the service model pioneered and practiced by Citizens Advice Bureaux.

  6.3  However, we believe that the current system of legal aid contracting and the proposed fixed fee regime cannot facilitate this approach to service delivery. Rules on scope and eligibility, combined with narrow definitions about what can be claimed as legal work against contract hours, restrict the capacity of caseworkers to respond appropriately to clients problems.

  6.4  Whilst the voluntary sector is skilled at developing and balancing services supported from a wide range of funders with different requirements, ultimately a more holistic approach to service delivery, requires a holistic approach to funding and procurement.

  6.5  In our submission to the Carter Review, we argued the case for a significant simplification of the contractual regime. Consider for example the size of the current contract document. Even for a contract of 550 hours (the equivalent to employing a half time adviser) the contract is 250 pages long. Within that contract document there is far too great an emphasis on micro management of time rather than providing a quality service. The guidance in itself is sometimes nonsensical, for example while an adviser cannot claim for reading "a short letter, they can claim for reading a long letter".

  6.6  Services providers can be penalised for minor administrative errors, for example when completing the Legal Help form the adviser must indicate how much capital a client has. One example cited by bureaux is that where agencies wrote the figure "0" rather than the word "nil" then all the time claimed for that file could be cancelled out by the LSC, regardless of the quality of the advice or the outcome of the case. LSC requirements mean that more time has to be devoted to form completion and setting up of files. The need to time record to a high level of detail also means that more staff time is devoted to setting up systems and checking and rechecking time recorded. Failure to meet target hours can trigger sanctions in the form of cuts, claw-backs, or specific orders, with only 80% of the contract price actually guaranteed by the LSC.

  6.7  Whilst it is true that a fixed fee regime dispenses with some of the problems of time-management and recording, the weakness of these proposals is that they are based on an outdated system of "matter starts". Solicitors have long been used to creating "separate matters" dating back to the existence of the old "Green Form" scheme. Advisers in the NfP sector have never worked in this way (although some have tried to pick it up) and accordingly now find themselves at a disadvantage.

  6.8  Ironically in November 1995 the LSC's predecessor body, the Legal Aid Board, explained in its response to the then Lord Chancellor's consultation paper Legal Aid—Targeting Need that it was "particularly interested in this sector, not only because they were actually providing the equivalent of green form advice and assistance, but also because of the way they approach their clients in providing the legal service. They deal with people and problems rather than narrowly defined pieces of `green formable' work."

  6.9  In order to retain their LSC funding under the proposed new contract NfP organisations will have pick up the "skill" of identifying separate matters and fast. In requiring this, the LSC is taking publicly funded legal services back full circle to the production of narrowly defined pieces of work—and all in pursuit of playing the numbers game.

7.  WHETHER THE TIMETABLE FOR IMPLEMENTATION SUGGESTED IN LORD CARTER'S REPORT IS REALISTIC?

  7.1  We do not believe that the LSC has the capacity to implement wide-ranging changes to legal aid, the preferred supplier scheme and the CLS Strategy simultaneously. Moreover, a model contract for 2007 has yet to be put out for consultation so it hard to see how the suggested "unified contract" can be in place in place by next year. It is questionable also whether the LSC have peer review resources to keep to their own timetable in relation to preferred supplier, or the timetable proposed by Lord Carter. We do not see how the LSC can implement any such changes and at the same time reduce their administration costs by 30%, as suggested by Lord Carter.

8.  WHAT BENEFITS MIGHT BE GENERATED FOR DEFENDANTS AND OTHERS BY ADOPTING THESE PROPOSALS? ALSO WHAT IMPACTS/DISADVANTAGES MIGHT RESULT FROM IMPLEMENTATION?

  8.1  We consider that the introduction of fixed fees in social welfare law, as proposed by the LSC, would be seriously detrimental to the provision of advice and assistance in this area of law, given the variation in case costs/lengths that exists within these areas.

  8.2  The proposed scheme concentrates on quantity; however there is a risk that this may be at the expense of quality. There is too great an emphasis on increasing the volume of people seen rather than safeguarding and improving quality of service offered to clients. More clients may receive some advice as a result of more matter starts becoming available (assuming of course suppliers are willing to take them on and provide the service). This will enable the Department for Constitutional Affairs to demonstrate that it has increased, "the number of people who receive suitable assistance in priority areas of law…" (PSA target 6). We are concerned though that there is a real risk that some of this advice will turn out to be of little or no benefit to clients because some suppliers will limit the range and depth of the service previously offered in order to remain profitable. Suppliers may also be tempted to cut corners by eg failing to take or return calls from clients unless it is strictly necessary in order to progress the case.

  8.3  There is a very real risk that the proposed scheme could potentially create conflicts of interest between clients and suppliers. Clients are interested in getting the right service with the best outcome whilst the supplier, although wanting the same as the client, will also be concerned to ensure that they don't spend more than the fixed fee on the client's case. Proposed control measures to ensure that the scheme does not have an adverse impact on services delivered to clients are insufficient. The LSC proposes to review matter start allocations and as against the supplier's previous years to ensure that case mix remains approximately the same. Whilst this may monitor supply levels in particular case types and it cannot safeguard against attempts to cherry pick cheaper case types. Indeed, it is unclear how any of proposed monitoring will prevent suppliers filtering out the most vulnerable clients, the very clients that the DCA has in mind in Strategic Objective 3 (Public Service Agreement 2001-04) when it talks about, "the use of public funds" securing "greater social justice" and reducing "social exclusion".

9.  WHAT IMPACT THE PROPOSALS WILL HAVE ON DIFFERENT COMMUNITIES (SUCH AS BLACK, MINORITY ETHNIC AND RURAL COMMUNITIES)?

  9.1  Unfortunately it is hard to see how Lord Carter's proposals will do anything other than reduce the diversity and geographical coverage of the supplier base. A market based system that is focused on the delivery of numbers of cases rather than services for clients will suit the larger providers. Both Lord Carter and the LSC have made it clear that the future lies with fewer, larger suppliers. The reality is that it is the smaller providers that tend to provide diversity within the supplier base. If these suppliers merge with larger ones there is a good chance that the unique qualities of the niche provider could easily be lost.

  9.2  Fixed fees are most suitable for large organisations with a large and mixed intake of cases and clients. That description does not match many organisations, and especially NfP organisations, which have a high proportion of clients of diverse backgrounds. The problem may be particularly acute in London; where the introduction of a national fee would have a huge impact on the providers, as their current costs are generally more expensive than providers outside London. The LSC states that it accepts that the costs of running a legal aid firm in London are higher than in many parts of the country but does not think that this can justify the much higher average prices in London. London has a greater concentration of social issues than in any other region and this may have a big effect in increasing the cost per case. According to the Mayor of London report "London Divided" (2002) found that:

    —  The proportion of ethnic groups is higher than anywhere else in the country (which may have low rates of educational attainment and may not have English as a first language).

    —  London has the highest proportion of children in households reliant on income based jobseekers allowance.

    —  Most minority ethnic groups have unemployment rates well over twice as high as the white population.

  9.3  The Advice Service Alliance's analysis of NfP cases in 2004-05 also revealed that the proportion of clients who were classified as other than White British was 64% in debt, 73% in housing, 74% in benefits and 75% in employment. The overall effects of fixed fees, in terms of case mix and quality, are likely to be the same for NfPs as for solicitors' firms. In London at least it seems that it will be largely non-white British clients who will suffer as a result. A further problem concerns the recommendation by Lord Carter that the allocation of social welfare law funding should be based on a formula using data from means tested benefits eg income support as a proxy for legal aid eligibility. The effect of implementing such a proposal would be a reduction in the allocation of funding to London of approximately 24%. Such a change would have an indirect discriminatory impact given the high proportion of members of BME communities in London.

10.  WHAT IMPACT ANY OR ALL OF THE RECOMMENDATIONS WILL HAVE ON LEGAL AID PROVIDERS?

  10.1  As stated previously we are particularly concerned about the effect on these reforms on the not for profit sector. As the new mixed economy of service providers has developed, there has been considerable debate around the role that different types of suppliers should play in the delivery of services under CLS. The LSC's Final report Quality and Cost on the Civil Advice and Assistance Pilot 2001 compared how solicitors and not for profit agencies work. It concluded that NfP agencies were more expensive per case and often took longer, however they provide a higher quality service and better outcomes for clients than other suppliers. The report concluded that the additional time taken on cases reflected the profile of more vulnerable clients, but that the methods of service and delivery used in the NfP sector gives clients added value and keeps overheads to a minimum.

  10.2  The success and appeal of this model was reflected in a recent Law Society consultation and reports, which explored amongst other options how legal aid solicitors could become more like NfP agencies. We also have concerns though that many solicitors firms may not find sufficient incentives to contract under the fixed fee regime—given the importance of the solicitors network to legal practice this could be disastrous, and an on-line survey conducted by the Law Society indicated that 95% of the solicitors who responded thought that the proposals would result in the work not being viable. There is a real risk therefore that the growth of advice deserts could be exacerbated.

11.  GROWING ADVICE DESERTS

  11.1  One of the aims of the CLS and introducing a contractual regime, was to provide a seamless network of legal information, advice and representation throughout the country; yet in the last five years there have been growing numbers of "advice deserts"; that is, areas of the country where the LSC has insufficient contracts—or no contracts at all—for specialist legal advice in one or more areas of social welfare law. This problem has been highlighted both by the Department for Constitutional Affairs Select Committee, and by the Independent Review of the CLS. In 2003 Citizens Advice published a report identifying the growth of "advice deserts" in various parts of the country and the major geographical inconsistencies in the availability of advice from the CLS, with increased clustering of services in urban centres, and a rapid decline in the number of solicitors firms providing publicly funded services. Thirty 9% of CABx reported that they considered themselves to be working in an "advice desert."

  11.2  Advice deserts are distinct geographical areas where there is nonexistent or insufficient supply of free specialist legal advice in one or more areas of social welfare law, due to local solicitors pulling out of legal aid. This means no access to justice, as where clients are eligible for legal aid it is because they are on low incomes, and often cannot afford even small amounts of money on travelling to get legal help. Often clients need help urgently and cannot wait months for an appointment. In all regions there is evidence of insufficient supply, and the result is that clients that are turned away. The government deny that there are "advice deserts", but recognises that there are many parts of the country with areas of "unmet legal need" for clients who are eligible for legal help.

  11.3  There is also evidence that, even in areas where there are solicitors and advice agencies with civil contracts, people find it hard to access advice. Over 60 % of CABx report that they have problems referring clients to solicitors with LSC contracts. It is not unusual for individuals seeking advice to say that they phoned 10 to 15 solicitors or other agencies before obtaining an appointment. Agencies have to turn large numbers of callers away due to pressure of work including those with an urgent and justified need for assistance.

  11.4  There is evidence that the number of people helped by legal aid is falling; (see tables below). Indeed, since the introduction of contracting the number of firms providing legal services has declined from over 14,000 to around 3,000  In 2004-05, the LSC failed to meet a key target to increase by 10% the number of new cases in areas of law that involve social exclusion (excluding immigration cases). In fact, compared to the previous year, the number of new cases declined by 5%. Between 2000 and August 2005 the number of legal help contracts in the main areas of social welfare law [excluding immigration] changed as follows:


Subject 2000 2005 Difference % change
         
Debt688396 -292-42.4%
Employment455227 -228-50.1%
Housing914580 -334-36.5%
Benefits749465 -284-37.9%


  11.5  The total number of new legal help cases started in the last three years of contracting are as follows (figures are rounded to the nearest thousand):


Year Solicitors Not for profit agencies Total
 
2002-03 690,000119,000 809,000
2003-04 583,000 136,000 719,000
2004-05 503,000 159,000 662,000


  11.6  The real effect of advice deserts though can only be measured in human cost. Below are some examples provided by bureaux:

    A CAB in Lincolnshire Boston saw a client who had been working as a Nursery Nurse since mid 2004. She had been off work for a couple of days and then received a letter dismissing her for gross misconduct. Grounds for dismissal were that the client's work had been found inadequate during a recent Ofsted inspection. However, when the bureau saw the report now mention was made of the client. The bureau's funding for specialist employment had ceased. The client will need to go to Tribunal to win her case. There is no legal help available in the town for employment advice. The nearest town is 45 minutes away. This is because local solicitors are withdrawing from the Legal Aid scheme for employment help and are only giving advice on a no win-no fee basis or for direct payments.

    A CAB in the South West Bristol saw a single mother who has overstayed her visa and is in constant fear of deportation. Her young baby is seriously ill and she worries that if she was forced to return to Senegal her baby would be in serious danger. She has not applied for benefits as she scared that if she applied the authorities will try and deport her. She is currently surviving on charity. The client clearly needs specialist advice but there is not a single solicitor in Bristol that will take on her case. The bureau has made the client an appointment with solicitors in Cardiff.

    A CAB in Kent Faversham saw a client whose eldest son is living with him as the child does not want to live with his mother. However, the client does not have parental responsibility and urgently needs to obtain it in order not to be charged with child abduction. The bureau tried to locate a solicitor offering legal aid using the CLS directory. However the nearest one, which is nine miles away could not offer an appointment for 10 weeks, the next closest which was 30 miles away could only offer an appointment in two weeks time

  11.7  In various surveys undertaken by the Law Society of legal aid suppliers, respondents have consistently cited the contracting regime and associated bureaucracy as the key factor for firms withdrawing from legal aid. Whilst Citizens Advice does not advocate a return to the previous demand led system, we consider it is essential that procurement policy provides sufficient incentives to keep good suppliers in the system. The Law Society's recent survey of solicitors assessments of the proposed reforms are therefore a cause for concern.

12.  HOW THE PROPOSALS WILL AFFECT FIRMS OF DIFFERING SIZE, STRUCTURE AND PRACTITIONER MIX

  12.1  We would expect the proposals to affect firms of varying sizes in different ways. Smaller firms may find it harder to achieve a sufficiently varied case mix to enable them to benefit from fixed fees. Niche or specialist firms may find it particularly difficult to continue. Larger firms may find it easier to achieve a varied case mix, but, by virtue of their size, may feel more exposed, and less willing to take the risks involved of continuing in areas that seem particularly likely to be unprofitable. Firms that will benefit will be those able to "cherry pick" their cases.

13.  WHETHER THE MEASURES PROPOSED WILL PROMOTE THE PROVISION OF HIGH QUALITY ADVICE AND SUPPORT THE EFFECTIVE AND EFFICIENT OPERATION OF THE JUSTICE SYSTEM

  13.1  No. The Carter report is particularly disappointing in this respect—the overall effect of fixed fees in social welfare law will be to reduce the provision of high quality services and access to the justice system. A better balance needs to be struck between price and quality.

14.  CONCLUSION

  14.1  We would suggest that consideration is given to a payment system based on incentives and rewards explicitly linked to the quality of service provided rather than penalties and disincentives. Alternative payment methods that should be considered; these include: an extension of tailored fixed fees; higher fee levels; more categories of fees; graduated fees; more sophisticated escape mechanisms; and special provision for niche organisations. There could be a basic fixed fee as well as a system of automatic uplifts payable to those suppliers who provide enhanced access to priority groups, eg people with a mental health problem, learning difficulties, literacy or language difficulties, any hearing or sight impairment or where other factors, such as rurality, influence the cost of delivering services as well as uplifts for particular achievements linked to quality of service and case outcomes. Fixed fees will only work if set at the right level initially and subsequently reviewed on an annual basis

October 2006





 
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