Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Not Addressed
Wage inflation significantly reduced legal aid eligibility, making minimum wage earners often ineligible
Conclusion
Considerable wage inflation means the proportion of the population now eligible for legal aid has fallen. From 2012–13 to 2020–21, the proportion of UK income taxpayers eligible for civil legal aid decreased by 11 percentage points (73% to 62%). There was also a 16 percentage point decrease in those whose gross income made them eligible for legal aid for criminal cases in magistrates’ courts (53% to 37%).41 Evidence from Commons Law, a specialist criminal defence firm, told us that at present, someone working 40 hours a week at the minimum wage would earn too much to be eligible for support in the magistrates’ court.42 MoJ told us that its means test review, published in 2023, committed to implementing higher financial eligibility thresholds, which means that more people will be eligible for legal aid. MoJ expects this change to require an additional £25 million a year of legal aid funding.43
Government Response Summary
The government response addresses a separate recommendation about reviewing financial eligibility thresholds and doesn't acknowledge the initial conclusion about considerable wage inflation.
Government Response
Not Addressed
HM Government
Not Addressed
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.