Recommendation 5

We remain unconvinced that MoJ has put in place sufficient measures to ensure the future sustainability of the legal aid market. In its 2024 report, this Committee raised concerns that while MoJ was undertaking large scale reviews of both criminal and civil legal aid it had not put in place mechanisms to routinely review the profitability of legal aid fees. MoJ has since committed to increasing legal aid fees for housing and immigration but it has not yet implemented these uplifts. Further, fees for other areas of civil legal aid, which have not increased since 1996, remain under review. Even after these commitments, organisations such as the Law Society remain concerned that these uplifts are insufficient to tackle the long-term sustainability of the market. LAA is exploring what it can do to reduce the administrative burdens on providers and has made entry into the market 5 for providers easier. However, there remains no mechanism in place for routinely reviewing the profitability of all types of legal aid. While we accept MoJ’s argument that setting legal aid fees is a decision for Ministers, regular reviews of profitability and sustainability would provide Ministers with the information they need to make informed decisions. recommendation Although Ministers are responsible for setting legal aid fees, the Ministry of Justice should better support them by routinely reviewing profitability and sustainability for all types of legal aid. It should set out its plans to do this in its Treasury Minute Response.