Select Committee · Public Accounts Committee

Value for Money from Legal Aid

Status: Closed Opened: 10 Jan 2024 Closed: 28 May 2024 19 recommendations 5 conclusions 1 report

The Legal Aid, Sentencing and Punishment of Offenders Act (LASPO), implemented in 2013, significantly reduced the scope of legal aid in England and Wales, which provides legal services for those who are eligible, largely those who cannot afford to pay. LASPO succeeded in helping reduce the scheme’s expenditure from approximately £2.9bn in 2012-13 to around …

Clear

Reports

1 report
Title HC No. Published Items Response
Thirty-Third Report - Value for Money from Legal Aid HC 481 24 May 2024 24 Responded

Recommendations & Conclusions

20 items
2 Conclusion Thirty-Third Report - Value for Money f… Accepted

Clarify options and assess impacts of remote legal aid for vulnerable groups.

There are areas of the country lacking face-to-face provision of legal aid, which risks penalising vulnerable groups disproportionately. Stakeholders have consistently raised the issue of ‘legal aid deserts’ where large geographic areas lack a legal aid provider for specific categories of law. For example, large areas of the South West …

Government response. The government agreed, clarifying that citizens can use LAA tools to find face-to-face providers, and where none exist, LAA may intervene to find a firm or agent. It also committed to improving market intelligence and engaging firms to understand obstacles …
HM Treasury
3 Recommendation Thirty-Third Report - Value for Money f… Accepted

Monitor Illegal Migration Act's impact and assess Exceptional Case Funding efficiency for immigration.

We are concerned about access to legal aid for immigration matters which often involve extremely vulnerable people, and the effectiveness of the Exceptional Case Funding (ECF) scheme for some of these cases. Organisations including the Immigration Law Practitioners’ Association provided evidence to the Committee of a ‘supply crisis’ in the …

Government response. The government agreed, outlining steps to monitor immigration advice capacity by commissioning research into demand monitoring methodology and providing £1.4 million for caseworker accreditation. It also detailed its assessment of the ECF scheme's efficiency, including recent stakeholder engagement and LAA …
HM Treasury
4 Recommendation Thirty-Third Report - Value for Money f… Accepted

Ensure financial eligibility thresholds for legal aid are routinely reviewed and swiftly implemented.

The Ministry of Justice has been slow to review financial eligibility thresholds, leaving fewer people eligible for legal aid, and it has not set out how it plans to review thresholds in future. One of the aims of MoJ’s 2013 reforms was to target legal aid at those who need …

Government response. The government agreed, committing to review legal aid income and capital thresholds within three to five years of the new means test's full implementation (expected by summer 2026), and prior to implementation using ONS data. It will also seek to …
HM Treasury
5 Recommendation Thirty-Third Report - Value for Money f… Accepted

Collaborate with departments to understand legal aid reforms' wider public sector cost-shunting.

The Ministry of Justice has still not made sufficient progress in identifying or addressing wider system costs of its legal aid reforms. Almost a decade ago, this Committee urged MoJ to get a better understanding of the wider costs of its reforms. While MoJ has taken some steps to understand …

Government response. The government agreed, stating it has already implemented the recommendation by engaging with other departments like MHCLG on cost-shunting and local authority funding of immigration advice, and will continue these discussions. It is also assessing cost shifts through early legal …
HM Treasury
1 Conclusion Thirty-Third Report - Value for Money f… Accepted

Committee took evidence on value for money from legal aid reforms.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Justice (MoJ), the Legal Aid Agency (LAA), and His Majesty’s Courts & Tribunals Service (HMCTS) on value for money from legal aid, following reforms to the system in 2013.1 We also …

Government response. The government 'agreed' with this introductory conclusion by reiterating various commitments from other recommendations, including reviewing data on legal aid demand and access, identifying data collection improvements, commissioning research on monitoring demand for immigration legal aid, and assessing the ECF …
HM Treasury
7 Recommendation Thirty-Third Report - Value for Money f… Accepted

Legal aid agencies lack demand and capacity data, hindering understanding of access issues.

Neither MoJ nor LAA estimate demand for legally aided services, nor do they capture routine data on whether providers are turning potential clients away.12 MoJ and LAA told us that this was partly because they do not want to place too high a burden on providers by requiring them to …

Government response. MoJ and LAA will review data on demand for and access to legal aid, improve data collection, and consider alternative methods for monitoring access, aiming for implementation by Spring 2026.
HM Treasury
8 Recommendation Thirty-Third Report - Value for Money f… Accepted

Persistent "legal aid deserts" reduce face-to-face access to legal aid services nationwide.

Stakeholders, including the Law Society, have often raised concerns about “legal aid deserts”, where large geographical areas do not have a legal aid provider for a particular category of law.19 For example, 183 local authorities had no legal aid provider office for housing issues in 2022–23, with particular gaps in …

Government response. MoJ and LAA will review the current data collected on demand for and access to legal aid, identify opportunities to make improvements, and consider commissioning independent research, aiming for implementation by Spring 2026.
HM Treasury
10 Recommendation Thirty-Third Report - Value for Money f… Accepted

Vulnerable individuals face significant barriers accessing remote legal aid advice

We asked LAA and MoJ how they can be sure that people in areas without face-to face provision can access advice, and what they are doing to assist vulnerable people. This might include people with limited transportation means, those for whom English is a second language or those with a …

Government response. The MoJ acknowledges the need for face-to-face advice and will continue to monitor its usage. Where remote advice is not appropriate, the LAA may intervene directly or via an external organisation.
HM Treasury
11 Recommendation Thirty-Third Report - Value for Money f… Accepted

LASPO reforms significantly reduced immigration legal aid, creating a supply crisis

The LASPO reforms significantly reduced the types of immigration cases that are eligible for legal aid. The reforms removed funding for all immigration cases except for asylum cases and a limited number of non-asylum cases, such as immigration detention and applications for leave to remain where the individual is a …

Government response. The LAA will monitor the number of immigration and asylum advice providers, and the MoJ will commission research into a viable methodology for monitoring demand and data collection on legal aid provider challenges; the MoJ has also taken steps to …
HM Treasury
12 Recommendation Thirty-Third Report - Value for Money f… Accepted

Targeted fee increases for IMA cases risk worsening broader immigration legal aid access

MoJ said that a shortage of immigration and asylum legal aid providers in some areas is concerning. It told us that it has taken steps to address capacity issues by increasing fees for cases related to the Illegal Migration Act 2023 (IMA) by 15% and providing additional funding to meet …

Government response. The LAA will monitor the number of immigration and asylum advice providers, and the MoJ will commission research into a viable methodology for monitoring demand and data collection on legal aid provider challenges; the MoJ has also taken steps to …
HM Treasury
14 Recommendation Thirty-Third Report - Value for Money f… Accepted

Suitability of Exceptional Case Funding for immigration cases questioned due to high costs

We asked MoJ whether it thought that the ECF scheme was the appropriate route for immigration cases given that LAA approves around 87% of immigration applications and that this funding is more difficult to access for claimants.35 Evidence also suggests 26 Qq 9–10 27 Q 41 28 C&AG’s Report, Figure …

Government response. The LAA will monitor the number of immigration and asylum advice providers, and the MoJ will commission research into a viable methodology for monitoring demand and data collection on legal aid provider challenges; the MoJ has also taken steps to …
HM Treasury
15 Recommendation Thirty-Third Report - Value for Money f… Accepted

Legal aid financial eligibility thresholds lack routine review and remain stagnant since 2009

Through LASPO MoJ aimed to target legal aid at those who need it most. Aside from scope changes, MoJ can use its financial eligibility criteria to achieve this goal. LAA assesses people’s financial eligibility for legal aid using a means test based on disposable income and capital. LASPO reforms made …

Government response. The MoJ has committed to reviewing income and capital thresholds for legal aid within three to five years of the new means test coming into operation, with full implementation not expected before Summer 2026.
HM Treasury
17 Recommendation Thirty-Third Report - Value for Money f… Accepted

MoJ's legal aid means test review implementation faces significant and repeated delays

MoJ first announced its means test review in 2019 but the review process has taken several years. MoJ wrote to us in March 2024 explaining that while it had implemented some minor changes identified in the review, such as removing means testing for children, it had delayed implementation of the …

Government response. The MoJ has committed to reviewing income and capital thresholds for legal aid within three to five years of the new means test coming into operation, with full implementation expected by Summer 2026 and will consider ONS data when reviewing …
HM Treasury
18 Recommendation Thirty-Third Report - Value for Money f… Accepted

MoJ failed to adequately assess wider cross-government impacts of legal aid reforms

When this Committee looked at legal aid in 2015, it noted the lack of analysis MoJ had undertaken of the wider impacts of the reforms on itself and other government departments and stressed that MoJ needed to do more. At the time, MoJ told the Committee that it was not …

Government response. The MoJ will engage with other government departments regarding the impact of legal aid policy changes and has begun discussions with the Ministry of Housing, Communities, and Local Government.
HM Treasury
19 Recommendation Thirty-Third Report - Value for Money f… Accepted

MoJ acknowledges cost-shifting of legal aid reforms but struggles to quantify wider impacts

During this inquiry, we asked MoJ what it had done to look at the impact of reducing the scope of legal aid on other parts of government. While MoJ maintained that it is difficult to get an accurate measure of wider costs to the public sector, it acknowledged that it …

Government response. The MoJ has engaged with other government departments and has begun discussions with the Ministry of Housing, Communities, and Local Government as to where changes in legal aid policy may impact on them.
HM Treasury
20 Recommendation Thirty-Third Report - Value for Money f… Accepted

Legally aided family mediation assessments remain significantly below pre-reform levels despite voucher scheme.

MoJ had expected that, following LASPO, more people with family law disputes would use mediation instead of court to resolve their disputes. However the number of legally aided mediation assessments (which determine whether a case is suitable for mediation) fell significantly following the reforms.52 MoJ told us that its mediation …

Government response. The MoJ has engaged with other government departments and has begun discussions with the Ministry of Housing, Communities, and Local Government as to where changes in legal aid policy may impact on them.
HM Treasury
21 Recommendation Thirty-Third Report - Value for Money f… Accepted

HMCTS maintains very limited understanding and data on litigants in person's court impact.

We asked MoJ and HMCTS what they were doing to improve their understanding of the impact of litigants in person (LIPs) on courts.56 Following reforms, the number of LIPs in family courts increased significantly. Between January and March 2023, in 40% of family disputes around children both parties were LIPs, …

Government response. The MoJ has engaged with other government departments and has begun discussions with the Ministry of Housing, Communities, and Local Government as to where changes in legal aid policy may impact on them.
HM Treasury
22 Recommendation Thirty-Third Report - Value for Money f… Accepted

Ministry of Justice demonstrates slowness in reviewing legal aid sustainability and provider fees.

MoJ has been slow to initiate and complete its large-scale reviews of the sustainability of civil and criminal legal aid. Lord Bellamy’s review of the criminal legal aid system was published in 2021, eight years after the reforms were introduced. While MoJ has now increased most criminal fees by the …

Government response. The MoJ acknowledges the need to monitor the profitability of legal aid work more regularly and is considering how best to do so, including through collaborative groups and the CLAAB, aiming for implementation by Winter 2024.
HM Treasury
23 Recommendation Thirty-Third Report - Value for Money f… Accepted

Ministry of Justice lacks routine financial data for proactive legal aid provider sustainability assessments.

MoJ told us that the volume of information it has needed to collect from providers, including surveys on profitability, is the main reason that the reviews have taken so long to complete.63 While MoJ and LAA have collected information on the profitability of providers through these reviews, they do not …

Government response. The MoJ acknowledges the need to monitor the profitability of legal aid work more regularly and is considering how best to do so, including through collaborative groups and the CLAAB, aiming for implementation by Winter 2024.
HM Treasury
24 Recommendation Thirty-Third Report - Value for Money f… Accepted

Legal aid providers struggle to recruit and train staff, lacking civil fee review arrangements.

Maintaining a supply of qualified staff in the legal aid sector is crucial to ensuring the sustainability of legal aid. However, providers continue to raise concerns about their ability to train and recruit new staff.65 Evidence provided by the Law Society described its research which found that low fee rates …

Government response. The MoJ acknowledges the need to monitor the profitability of legal aid work more regularly and is considering how best to do so, including using data from representative groups and gathering evidence through the Review of Civil Legal Aid (RoCLA).
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
25 Mar 2024 Antonia Romeo · Ministry of Justice, Jane Harbottle · Legal Aid Agency, Jason Latham · HM Courts and Tribunals Service, Jerome Glass · Ministry of Justice View ↗

Correspondence

8 letters
DateDirectionTitle
21 May 2024 Correspondence from Richard Price, Director General – Performance, Strategy and…
20 May 2024 Correspondence from Richard Orpin, Interim CEO, Legal Services Board, re Legal …
15 Apr 2024 Correspondence from Jane Harbottle, Chief Executive, Legal Aid Agency, re Publi…
15 Apr 2024 Correspondence from Jerome Glass, Director General, Policy, Ministry of Justice…
15 Apr 2024 Correspondence from Nick Goodwin, Chief Executive, HM Courts & Tribunals Servic…
15 Apr 2024 Correspondence from Jane Harbottle, Chief Executive, Legal Aid Agency, re Publi…
15 Apr 2024 Correspondence from Nick Goodwin, Chief Executive, HM Courts & Tribunals Servic…
18 Mar 2024 Correspondence from Lord Bellamy KC, Parliamentary Under-Secretary of State for…