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Today I am announcing a package of measures to restructure family barrister payments, reduce overall expenditure, and to refocus resources on high-priority clients. Given the significant priority afforded to public law children cases, these reductions will apply primarily to private family law work, such as child contact and residence disputes, and disputes over property. The Government is considering how we can increase the number of private law disputes which are resolved
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through mediation, because adversarial proceedings are not always in the interest of the parties. We will make the following changes to the Family Graduated Fee Scheme for barristers:

Abolish the “more than two parties”. Special Issue Payment which provides a 40 per cent. increase to fees when claimed in public law cases. We received strong representations from interested parties that this element of the scheme did not represent a sufficiently ‘special’ issue to merit a fee increase, as there are more than two parties in the large majority of such cases.

Re-direct most of the funding spent on the 2 more than two parties” Special Issue Payment into increasing by £4.4 million p.a. the fees paid to barristers for hearings and conferences in child care or supervision proceedings. This will mean an increase in fees paid to lawyers in at least 3,500 of these cases each year.

In private law disputes concerning child contact or residence, reduce the Special Issue Payments claimable by barristers for conduct issues and additional experts from 50 per cent. to 30 per cent. and 20 per cent. respectively. Both of these payments are currently running at 150 per cent. of the level intended.

In private law disputes concerning financial settlement on divorce, abolish the most expensive Special Issue Payments claimable by barristers for issues concerning conduct, analysis of accounts, assets which are outside the control of the parties, and more than one expert. In addition, we intend to reduce the Special Issue Payments claimable for litigants in person or a relevant foreign element from 25 per cent. to 20 per cent. All of these payments are running at a level higher than that intended.

Introduce tighter procedures for barristers’ claims for Special Preparation Fees, which was a suggestion made to us by interested parties. This is an area where fees are running at 800 per cent. of the level that anyone expected. Barristers will be required to submit to judges a detailed schedule of the hours spent in preparation so that these payments are only made where appropriate. We will also revise the claim forms so that the basis of any claim is clear.

We are not reducing expenditure in the Domestic Violence category.

Annual expenditure on family barristers’ fees is now nearly £26 million per year higher than it was five years ago—an increase which far outstrips any increase in cases. These changes will help us to reduce net expenditure by £6.5 million per year, and to refocus resources on some of the most vulnerable families and children in society”

Departmental Expenditure Limits

The Secretary of State for Justice and Lord Chancellor (Mr. Jack Straw): Subject to Parliamentary approval of any necessary Supplementary Estimate, the Ministry of Justice (MoJ), Northern Ireland Court Service (NICS) and The National Archives (TNA) Total Departmental Expenditure Limit (DEL) will be increased as follows:


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Within the Total DEL change for MoJ (RfR1, 2 and 3) the impact on resources and capital are as set out in the following table.

£000
ChangeNew DEL

VotedNon-votedVotedNon-votedTotal

Resource DEL:

260,745

(196,995)

5,880,642

3,433,926

9,314,568

Of which:

Administration(1)

195

0

462,036

0

462,036

Near cash in Resource DEL

49,959

3,767

4,682,905

3,958,031

8,640,936

Capital(2)

68,778

912

921,818

40,512

962,330

Depreciation(3)

(1,980)

(4,918)

(398,308)

(8,203)

(406,511)

Total

327,543

(201,001)

6,404,152

3,466,235

9,870,387

Total AME

455,000

0

595,000

0

595,000

(1) The total of “administration budget” and “near-cash in Resource DEL” figures may well be greater than total Resource DEL due to the definitions overlapping.
(2 )Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets.
(3) Depreciation, which forms part of Resource DEL, is excluded from the total DEL since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

(1) The change in the Resource and Capital DEL for MoJ arises from:

RfR1: To promote the development of a modern, fair, cost-effective and efficient system of justice for all.

Resource Change: Admin (total decrease of (£685,000))

Take up of End-Year Flexibility (EYF):

Other Increases:

Decreases:

Resource Change: Programme (total increase of £97,957,000)

Take up of End-Year Flexibility (EYF):

Reserve Claims:

Other Increases:


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Resource Change: Programme (total decrease of (£34,822,000))

Decreases:

Capital Change (total increase of £69,690,000)

Take up of End-Year Flexibility (EYF):

Other Increases:

Decreases:

AME Changes (total increase of £455,000,000)

Other Increases:

RfR2: Overseeing the effective operation of the devolution settlement in Scotland and representing the interests of Scotland in the UK Government.


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Resource Change: Admin (total increase of £880,000)

Take up of End-Year Flexibility (EYF):

Resource Change: Programme (total increase of £420,000)

Other Increases:

RfR3: To support the Secretary of State in discharging his role of representing Wales in the UK Government, representing the UK Government in Wales and ensuring the smooth running of the devolution settlement in Wales.

There is no change in the Capital DEL for RfR2 and RfR3

(2) The change in the Resource DEL for the Northern Ireland Court Service (NICS) arises from:

Within the Total DEL change for Northern Ireland Court Service, the impact on resources and capital are as set out in the following table:

£000
ChangeNew DEL

VotedNon-votedVotedNon-votedTotal

Resource DEL:

(2,000)

22,000

56,974

96,494

153,468

Of which:

Administration(1)

(1,000)

(1,507)

(1,507)

Near cash in Resource DEL

(2,000)

22,000

42,023

93,706

135,729

Capital(2)

8,200

8,200

Depreciation(3)

(8,658)

(441)

(9,099)

Total

(2,000)

22,000

56,516

96,053

152,569

(1) The total of “administration budget” and “near-cash in Resource DEL” figures may well be greater than total Resource DEL due to the definitions overlapping.
(2 )Capital DEL includes items treated as resource in Estimates and accounts but which are treated as Capital DEL in budgets.
(3) Depreciation, which forms part of Resource DEL, is excluded from the total DEL since Capital DEL includes capital spending and to include depreciation of those assets would lead to double counting.

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