Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Accepted
MoJ's legal aid means test review implementation faces significant and repeated delays
Recommendation
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 remaining changes planned for 2025 until 2026.44 We asked why MoJ was taking so long to implement the changes and how it planned to review and uprate thresholds in the future. MoJ told us that delays were due to the complexity of the policy, which required a “huge amount” of stakeholder consultation, 36 C&AG’s Report, paras 2.25–2.26 37 Correspondence from Jane Harbottle, Chief Executive, Legal Aid Agency, 3 April 2024 38 Q 54 39 Q 57 40 C&AG’s Report, paras 2.2 & 2.6 41 Q 60 ; C&AG’s Report, para 2.6 42 VMLA0010 43 Q 60 44 Correspondence from Lord Bellamy KC, Parliamentary Under-Secretary of State for Justice, re Legal aid means test review: implementation update, dated 12 March 2024; C&AG’s report, para 2.7 & 2.8 14 Value for Money from Legal Aid and that there were challenges in updating LAA’s digital systems.45 It also identified competing government priorities such as developing and making changes resulting from the IMA as a contributing factor.46 MoJ assured the Committee that although the new thresholds are currently based on 2019–20 data, they would be uprated for inflation since 2020.47 MoJ told us that it would consider future reviews once the current changes were complete.48 It stated that it would not intend for a future review to take as long but that the frequency of reviews was a question for Ministers.49 45 Qq 60, 62 46 Correspondence from Lord Bellamy KC, Parliamentary Under-Secretary of State for Justice, re Legal aid means test review: implementation update, dated 12 March 2024; C&AG’s report, para. 2.8 47 Qq 60, 62; C&AG’s Report, para. 2.8 48 Q 62 49 Q 61 Value for Money from Legal Aid 15 2 Cost effectiveness and sustainability of legal aid Understanding
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 expected by Summer 2026 and will consider ONS data when reviewing thresholds.
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.