Government's proposed reform of legal aid - Justice Committee Contents


Written evidence submitted by the Legal Aid Practitioners Group (AJ 41)

1.  LEGAL AID PRACTITIONERS GROUP

We are a membership organisation of firms and not-for-profit organisations. LAPG was founded over 25 years ago to call for access to justice and to represent legal aid practitioners. Our membership covers practices of every size from sole practitioners to the largest legal aid practices, our members carry out all of the areas of law covered by legal aid contracts. Our members are situated throughout England and Wales.

2.  EXECUTIVE SUMMARY

2.1. We are concerned that there will be a massive reduction in the number of providers both private practice and not-for-profit. (Section 3)

2.2. We believe that quality will suffer. (Section 3)

2.3. We have given some examples of the types of cases that will be out of scope and raised concerns about where vulnerable people will be able to access any advice, assistance or representation. Private practice has a lot of pressures on it including reduced income from other areas of work in an economic downturn and the challenges posed by alternative business structures. Not-for-profit organisations are affected by other spending cuts. However spending cuts in the police and local authorities will affect e.g. family and housing legal aid work. Or indeed there may be no service. Furthermore, there will be additional costs elsewhere e.g. on local authority housing departments, social services departments, courts, tribunals and the health service. (Section 4)

2.4. We have made limited comments on alternative funding and on Jackson. (Sections 5 and 6)

2.5. We share the concerns raised in the Consultation on the effects on social cohesion, increased criminality, reduced business and economic efficiency, increased resource costs for other departments and increased transfer payments from other departments. (Section 7)

3.  What impact will the proposed changes have on the number and quality of practitioners, in all areas of law, who offer services funded by legal aid?

3.1. The Consultation Paper estimates that the number of providers will decrease to less than 1000. In the early 1990s there were 11,000 providers. The current number is, we believe, in the region of 3000.

3.2. It is already difficult for many clients to obtain advice and representation, in rural and urban areas. Even in parts of the country where there appears to be good supply as in London, clients often try many organisations before they either give up or find a practitioner to see them.

3.3. What will drive people away from providing legal aid services? It will be the combination of the effects of the proposals:

(i)  The contracts awarded in 2010 in social welfare law demanded for the first time a holistic service in housing, welfare benefits and debt. Within weeks of those contracts starting, the Government proposed that welfare benefits and most debt be omitted from future funding. All the providers who spent a considerable amount of time and money re-designing their services will have to re-design them again.

(ii)  Similarly in family work, the LSC wanted a holistic service and awarded more points to those who did a wide range of family work (Area A only). The contract was overturned following a successful Judicial Review brought by The Law Society. The Consultation proposes that large amounts of family law will be excluded from future contracts. Thus the firms geared up to deal with client issues at all levels will need to reshape themselves.

(iii)  It is hard to do any business planning when there are so many changes proposed by the sole purchaser of the services.

(iv)  Profit margins are very low at present. The hourly rate in legal aid work varies depending on the area of law and the type of case. Rates of pay in some areas of law have remained static for over 10 years or have decreased. Practitioners who would be allowed rates of over £200 per hour by their local county courts for privately paying work will be paid rates starting at £50 - £70 per hour for many legal aid cases. The proposed reduction across the board in civil fees of 10% will make it extremely difficult for many providers to continue.

(v)  Indeed the plethora of payment ranges adds to the difficulty of delivering the service by making it much more time consuming to calculate fees and any profitability.

(vi.)  Fixed fees which are not considered generous were brought in based on the current mix of cases. If the mix of cases changes, this will affect the ability of providers if the shorter cases are taken out of the system. Similarly if uplift on more complex cases is capped the 'swings and roundabout' argument breaks down.

(vii)  Not-for-profit providers will suffer the added blow of reductions in local authority funding and the decline in grants from charitable organisations and Government Departments.

(viii)  Private practices have often subsidised legal aid work from other work which is more profitable. At a time of recession, other areas are not necessarily providing that cushion so legal aid work becomes even more unattractive.

(ix)  With the advent of alternative business structures in October 2011 it is not predicted that they will want to run legal aid firms but they may seek out any part of the High Street practice that is profitable. That will destabilise legal aid mixed practices further.

3.4. It is difficult to stress enough quality concerns that have already arisen.

(i)  With hourly rates, providers were paid for the work they did and all bills were checked by the LSC or the courts. With fixed fees there is pressure to deliver the service within budget and that may mean that clients are given a poorer service.

(ii)  With such low rates, the only way to deliver the service is to use lower paid individuals. These may be well trained and work in a small area of law and provide adequate or good advice. The fear is that there is not enough quality assurance to be certain of this.

(iii)  The client base is extremely vulnerable. It is therefore important that the right advice is delivered and that standards are high. We do not believe that the system as currently designed can be certain of this.

4. The Government predicts that there will be 500,000 fewer cases in the civil courts as a result of its proposed reforms. Which cases will these be and how will the issues they involve be resolved?

4.1. The cases to be taken out of scope are set out on pages 7 and 8 of the Ministry of Justice's Impact Assessment 28

4.2. Ancillary Relief (where domestic violence is not present):

(a)  What types of cases? An example of a case which will no longer be covered: a pregnant woman Ms A has a child by her previous partner and a child by Mr A. She lives with Mr A. Mr A works and there is a reasonable lifestyle. Mr A tells her to leave as he has a girlfriend who is pregnant. Ms A goes to the local authority to ask for housing. Currently she could obtain advice and representation to return to the property thus ensuring that the state does not pay for her accommodation. In this case that is what happened so the woman was able to return to the property and was not separated from her children. Generally we have concerns about clients who have English as a second language or have mental health issues and cases where disbursements have to be funded, paperwork prepared for court and statements prepared. Form E is a complex form.

(b)  How will they be resolved? While mediation is important it must be stressed that mediation has to be entered into willingly. There must be openness on disclosure and there has to be the back-up of the courts in case people do not comply with the mediated arrangements. The government appears to believe that mediation can take the place of litigation and cites the statistic that in 2008 73% of ancillary relief orders were not contested (4.157 green paper) to evidence that the majority of individuals are able and willing to take responsibility for organising their own financial affairs. This statistic is wholly misleading. How many of those had the benefit of sensible and practical legal advice in order to equip and enable them to work together towards agreement? Many of them will be agreements that could not have been achieved in mediation but were negotiated via solicitors. Arguably the statistic demonstrates that solicitors are an effective gateway to resolution without litigation for those in relationship breakdowns.

4.3. Clinical Negligence:

(a)  What types of cases? While the CFA regime remains as it stands at present, the cogent arguments for retaining Clinical Negligence within legal aid scope which held sway in the consultation preceding the Access to Justice Act 1999 still apply. Assuming implementation of the government's preferred civil costs reforms, there would be a case for reducing the scope of legal aid for clinical negligence in connection with those claims for which CFA funding would be financially viable. However, as the consultation paper recognises (4.167) there will be cases for which legal aid should remain available, for example those involving exceptionally high disbursements. Another example would be long-running cases where final settlement must of necessity be deferred (e.g. cases involving severe brain damage to children).

(b)  How will they be resolved? If these cases are not resolved one result may be that the state will pay for the care of the person rather than from insurance companies paying out.

4.4. Consumer and General Contract Law:

(a)  What types of cases? Very few of our members carry out cases in this area of law but some have raised concerns that claims for professional negligence will be outside scope if the paper is implemented. It is very difficult to bring a claim for professional negligence.

(b)  How will they be resolved? We think that there will be very few organisations able to provide basic advice and for professional negligence cases we think it unlikely that there will be a thriving CFA market.

4.5. Legal help for Criminal Injuries Compensation Authority applications

We accept that CICA claims are a lower priority than some other forms of civil legal aid. However, it should be recognised that they cover a wide range of injuries from the lower tiers of the scheme through to injuries of the utmost severity and it is misleading to characterise them as relatively straightforward matters for which legal expertise is not required.

Consider, for example, CICA awards relating to non-accidental head injuries to infants which not only involve complex assessments and awards but can also take many years to finalise. Long-running CICA claims are problematic to firms in the private market in funding terms in view of the substantial unpaid work in progress that may become tied up for years on end but without the prospect of a costs award or success fee on conclusion of the case, meaning that costs must normally be met from the claimant's award.

4.6. Debt matters where the client's house is not at immediate risk:

For many years the policy of the LSC and the Ministry of Justice has been to recognise the importance of early advice and to place importance on early acts of advice. We refer to the experience of others in this eg Citizens Advice.

4.7. Education:

(i)  This is a small amount of the legal aid budget. LAPG are very concerned that there is a proposal that education should be removed from scope. The clients represented in this area are often children with disabilities from deprived backgrounds who are trying to access essential educational services.

(ii)  According to the Legal Services Commission Statistics, at least 92% of education cases are successful and the majority of these cases are Special Educational Needs cases. This represents extremely good value for money for the Government.

(iii)  There are three main areas of work undertaken by education lawyers and these are as follows:

—  Admissions

—  Exclusions

Special Educational Needs, including appeals to the Special Educational.

Needs & Disability Tribunal and appeals from the Special Educational Needs & Disability Tribunal to the Upper Tribunal (the vast majority of cases fall into this area).

(iv)  In addition, cases such as bullying, transport for disabled children and disputes concerning higher education are also dealt with by education lawyers. Although education negligence is currently in scope, these cases are now very rare.

(v)  Much of the work done by education lawyers is completed under the legal help scheme, which provides advice and assistance but which does not cover representation in court proceedings and pays at the rate of just £53.60 per hour. (The private rate for experienced education lawyers is often between £200-300 per hour.)

(vi)  The types of cases covered include e.g. a disabled child unable to attend school but where no alternative was considered. The child was out of school for three years. Following legal advice an annual review was arranged (a statutory requirement but it had not taken place for three years) and the child is now in full-time specialist provision. We have many examples of local authorities not complying with their statutory obligations and disabled children being out of school but after legal intervention, they did comply and the child is now receiving education.

4.8. Employment

At this stage we make no comment on employment.

4.9. Specified housing matters:

(i)  While it is welcome that many housing cases remain in scope, there seems to be an acceptance that the scheme will now fund litigation in court rather than the early advice currently funded.

(ii)  It is unclear if the current proposals cover the following.

Homelessness reviews which have to be very thorough because if unsuccessful there are only grounds to appeal based on what is included in the review. Some reviews can take experienced practitioners ten hours to complete.

Gypsy and traveller advice on issues which if successful may prevent eviction in future?

Cases where nuisance needs to be pleaded eg an infestation or water penetration. It will be difficulty to run a case where some causes of action are within scope and some are not.

Breach of the covenant of quiet enjoyment. Landlords who harass tenants will be able to do so with very little chance of redress particularly if local authority cuts mean that they will not prosecute harassment and unlawful evictions.

4.10. Immigration where the litigant is not detained

The difficulty for the advisor is that a person can receive advice for the detention aspect but not for the immigration problem which has led to the detention. Who else will advise? It is a criminal offence for a non OISC registered provider to deliver advice. For desperate clients however the fear is that unscrupulous providers will charge for this work. We refer to ILPA for detailed consideration of this question.

4.11. Private law children and family cases (where domestic violence is not present) other than international child abduction cases, though mediation will remain in scope:

(i)  An example of a case which is covered now is Mrs B who allowed her estranged husband to have their two boys every weekend. Mr B is Turkish but a British Citizen. Mr B threatened to remove the children from the jurisdiction if Mrs B did not terminate her new relationship. Mrs B wanted the children to see their father. They also had a good relationship with her new partner. With legal representation she sought a Prohibitive Steps Order to prevent the children being removed from the jurisdiction. Without access to that she might have resorted to not allowing contact.

(ii)  Will parents in future only obtain representation once their children have been abducted?

(iii)  Access to private law children act proceedings often saves the state money and concerned family members may take proactive steps to look after children where their parents pose a danger. Many then look after vulnerable children who would otherwise be costly for the state to care for.

4.12. Welfare benefits. It is self-evident what these cases are about and MPs will be aware from their surgeries of the many welfare benefit problems people have to deal with. These cases involve complex areas of law and the amounts involved can make a profound difference to the people receiving them. Importantly benefits problems addressed early can prevent many other problems in future, most obviously homelessness.

We do not have space to cover the following.

4.13 Miscellaneous matters

4.14 Upper Tribunal appeals (from the General Regulatory Chamber of the First-Tier Tribunal)

4.15 Public Interest cases

4.16 Tort and general claims

4.17 We would stress that the reference in the Green Paper to the possibility of exceptional fees being funded must not be taken out of context. Currently we understand that a few hundred cases are dealt with every year. They take months to be decided. That funding will not be able to cover the 550,000 cases no longer being funded under the current proposals.

4.18 While Legal Action Group and Advice Services Alliance have prepared excellent submissions on the advice sector we would highlight the lack of provision that will be available with the reduction of private practice in family matters. Here is an illustration from a member:

"I want to stress generally that neither the nfp sector nor any part of local authority-type organisations will be there to pick up the shortfall, if legal aid isn't there. For example, Domestic Violence: no solicitors to look at DV situations; in Devon, the County Council are proposing completely to scrap DV support services; 700 redundancies have been announced for Devon and Cornwall police; and of course there are budget threats to CAB, Shelter etc".

5. What action could the Government be taking on legal aid that is not included in the proposals (for example, on Very High Cost Cases)?

5.1. The Government is referred to the Law Society's Access to Justice Review which is a thorough review of alternative sources of income and positive suggestions to ensure the future of a quality service for clients.

6. Do the proposals to implement the Jackson report recommendations on civil court funding and costs adequately reflect the contents of that report?

6.1. The Jackson Report stresses the importance of the legal aid scheme in ensuring access to justice. We have insufficient space to deal with this (very large) topic.

7. What are the implications of the Government's proposals? The Committee now intends to extend this inquiry, and will be taking oral evidence on it in February (witnesses to be confirmed)

7.1. We refer to pages 9 and 10 of the Ministry of Justice's Impact Assessment 28 which identifies that "A significant reduction in fairness of dispute resolution may be associated with wider social and economic costs such as:

Reduced social coherence.

Increased criminality.

Reduced business and economic efficiency.

Increased resource costs for other departments.

Increased transfer payments from other departments.

On page 10 there is a discussion that if people address their disputes in different ways there may be implications for the economic efficiency of dispute resolution.

7.2. Many vulnerable people will be left unable to obtain advice, assistance and representation on complex areas of law.

7.3. We would ask the Committee to use its knowledge of the litigation process with its reliance on precedent and evidence to scrutinise how realistic is it for people with mental health issues, disabilities that make it harder to process paperwork, where English is not a first language or where the person is not literate to obtain a just resolution of their cases. The Green Paper recognises the disadvantaged composition of the client base for civil legal aid.

7.4. The telephone gateway proposals are brief but potentially will transform the delivery of legal aid work. The implications are that clients will no longer be able to obtain the advice, assistance and representation they wish. If a telephone gateway comes in which means that advice can only be accessed through that service, this has grave implications for client choice. A client could return to a firm or law centre he or she trusts. They may have advised in the past or been recommended. Under the proposals the client may have to ring the phone line and not be allowed face to face advice at all. We urge the Committee to ask that there be a further consultation on this.

January 2011



 
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