Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
Legal aid financial eligibility thresholds lack routine review and remain stagnant since 2009
Recommendation
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 some changes to financial eligibility criteria, but did not fundamentally change existing thresholds. Neither did they create a mechanism to review financial eligibility thresholds routinely. Since 2009, anyone earning over £31,884 has not been eligible for legal aid for civil cases, unless they are in receipt of certain benefits.40
Government Response Summary
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.
Government Response
Accepted
HM Government
Accepted
4. PAC conclusion: 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. 4. PAC recommendation: In its Treasury Minute response, the Ministry of Justice should set out what it will do to: • ensure that financial eligibility thresholds for legal aid are kept under review in light of changes in the economy; and • ensure that any proposed changes can be implemented quickly and efficiently. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2026 4.2 The MoJ has committed, in response to the Means Test Review consultation, to reviewing income and capital thresholds for legal aid within three to five years of the new means test coming into operation (full implementation is not expected before Summer 2026). MoJ believes this is a reasonable timeframe to allow for changes to settle in, and any review undertaken sooner than this might not provide an accurate picture of any impact being felt. MoJ has also committed to reviewing the level of thresholds prior to implementation, including considering the most recent Office of National Statistics (ONS) data. 4.3 As ever, the MoJ will seek to design policy to ensure the most efficient operational and digital delivery possible, and work to ensure any changes are implemented as quickly and efficiently as is practicable. The scale of change involved in changes to the means test is considerable, and delivery of changes has to be achieved whilst maintaining the functionality of existing schemes. MoJ recognises that there needs to be transformation of the technology used in delivering legal aid to ensure it is of modern design, meets user needs and is flexible in its design so as to be able to implement required changes more quickly. 4.4 This digital transformation requires significant investment against a challenging economic backdrop, and any decisions on funding will need to be made in the round in the context of wider priorities in the next Spending Review.