Source · PHSO decision

Legal Aid Agency

Ref: P-005264 Statement Decision date: 21 April 2026 Jurisdiction: UK Government Closed After Initial Enquiries

Mr E complained the Legal Aid Agency pursued him for a debt of £3,586.50 due to an incorrect change of address, leading him to miss correspondence and be unaware of outstanding payments.

Legal aid

Outcome

AI summary
The ombudsman closed the case, finding no indication that the Legal Aid Agency handled the matter incorrectly, despite the significant distress caused to Mr E.

The complaint

3. Mr E complains about being pursued for a £3,586.50 debt by the LAA, despite applying for legal aid in early 2021 and providing information about a change in his financial circumstances in August and September 2021. Mr E believes an incorrect change of address meant he received no correspondence for nearly 18 months, leaving him and his solicitor unaware of any outstanding payments.

4. Mr E says this has had a significant impact on his mental health. He feels unable to move on until the matter is resolved and is concerned the debt may affect his employment prospects.

5. Mr E would like his solicitors to be able to resubmit the original change in financial circumstances application so that he only pays what is owed based on his financial position at the time.

Background

6. In the LAA’s initial complaint response in July 2024, it stated it received Mr E’s application for legal aid on 19 January 2021, and this was processed by the LAA on 20 January.

7. Mr E submitted evidence to show his change in finances on 24 August, which was a letter from his employer and a July wage slip. The LAA said it sent Mr E’s solicitor an email around this time stating that they would need to complete a Change in Financial Circumstances (CIFC) via a CRM15 form to consider this.

8. Mr E submitted also submitted a P45 on 20 September which showed his employment ended on 27 August. The LAA said it sent an email to Mr E’s solicitor asking them to complete a CRM14 form so it could process this request. The LAA also explained that any change would not affect Mr E’s income contribution liability as the change occurred six months after the liability period for Legal Aid, which started on 20 January.

9. In its later complaint response of 7 October 2024, the LAA further explained its position in relation to the CIFC applications. The LAA had reproduced print outs of its case management system and explained to Mr E that it had not received any applications from Mr E’s solicitors in relation to a CIFC. The LAA could also see that no forms were started or saved in the time period Mr E said he sent his change of CIFC evidence. The LAA also linked this to the following guidance Criminal Legal Aid Manual (CLAM). Section 14.1 covers this area and states:

14.1 Review of means where there has been a change in financial circumstances

Once assessed for Criminal Legal Aid, an applicant should submit a new application with you using the Apply for criminal legal aid service when:

• the level of income used in the original assessment is no longer available to the applicant • the applicant’s disposable income has increased/decreased since their original application • the applicant becomes in receipt of a passported benefit • there has been a change in their partner’s circumstances

10. The LAA said it could not see any evidence of Mr E’S solicitors having submitted a CIFC correctly and within time (CLAM guidance Section 14.1.1 states the LAA require a CIFC within 28 days of the change). Furthermore, the LAA said the case had concluded and it had received final defence costs (FDCs) from both solicitors and barristers. As such the LAA said Mr E had an outstanding balance of £3,127.

11. Regarding the issue with Mr E’s address and not receiving communication about his Legal Aid debt, the LAA said it had always registered Mr E’s address as the correct one and had not changed this. The LAA said the issue appeared to arise from Marstons, a debt collection and enforcement agency it contracted at the time. Additionally, the LAA said it emailed solicitors directly and gave contact details for replies. Solicitors could also view updates and amend submissions via its online portal.

Findings

Mr E complains about being pursued for a £3,586.50 debt by the Legal Aid Agency despite applying for legal aid in early 2021 and submitting a change in financial circumstances application in September 2021.

14. Before we decide if we should conduct a detailed investigation of a complaint, we look at whether there are signs the organisation has got something wrong. We do this by comparing what should have happened with what did happen. We have done this and have not found any indications that something has gone wrong.

15. We understand that Mr E is not disputing that he may be liable to contribute towards his legal aid costs, but he believes the amount does not reflect his financial circumstances following a change in income.

16. The evidence shows that Mr E provided documents in August and September 2021 indicating a change in his financial situation. However, under the Criminal Legal Aid Manual (CLAM), a change in financial circumstances must be submitted as a formal application by the legal representative using the appropriate process.

17. The LAA’s records indicate that no such application was received, submitted, or saved by Mr E’s solicitors. In these circumstances, the LAA would not have been able to reassess Mr E’s means or adjust his contribution.

18. While the guidance allows for late applications to be considered where reasons are provided, we have not seen evidence that a formal application was submitted at any stage. In the absence of a valid application, we cannot say the LAA failed to follow its process.

19. We recognise that Mr E relied on his solicitors to act on his behalf in submitting the appropriate forms. If Mr E believes his solicitors did not follow his instructions or failed to submit the required application, this may be a matter he could raise with the Legal Ombudsman, which considers complaints about legal service providers

20. We have seen that the LAA acted in line with our principles of Good Administration here, in particular being open and accountable. This principle sets out that public bodies should be open when explaining their decisions, state their criteria for decision making and give reasons for their decisions. We have seen that the LAA explained how it reached its decision in line with the CLAM guidelines and why it was not able to consider Mr E’s change in financial circumstances.

Mr E believes an incorrect change of address meant he received no correspondence for nearly 18 months, leaving him and his solicitor unaware of any alleged outstanding payments until after the case ended.

21. Mr E says that an incorrect address meant he did not receive correspondence about the debt for a prolonged period.

22. We recognise that the issue with Marstons holding an incorrect address may have caused confusion and meant Mr E did not receive follow-up correspondence about the outstanding balance.

23. However, we have seen that the LAA issued an Income Contribution Order at the outset of the case, which set out the amount payable and the schedule for payments. This created an ongoing responsibility for Mr E to make those payments, regardless of whether further reminders were received.

24. We have also seen that the LAA communicated with Mr E’s solicitors and provided routes for updates and enquiries. We have therefore not found evidence that the LAA failed in its responsibilities in this respect.

25. Overall, we have found that the LAA acted in line with the Principles of Good Administration, in particular being open and accountable and acting fairly and proportionately. It explained its decision, applied its published guidance, and did not have evidence of a valid application that would have allowed it to reassess Mr E’s financial position.

26. We recognise that this has been a difficult and distressing situation for Mr E, particularly given the impact on his mental health and the uncertainty surrounding the debt. We understand that this outcome will be disappointing. We hope we have clearly explained how we have reached our decision and the reasons for it.

Our decision

1. We have carefully considered Mr E’s complaint about the Legal Aid Agency (LAA). We have not seen an indication that the LAA got something wrong in the way it handled this matter.

2. We recognise this situation has caused Mr E significant distress, particularly given the financial uncertainty and the impact on his wellbeing and future plans. Mr E feels the amount he is being asked to repay does not reflect his financial circumstances at the time.

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Decision details

Reference
P-005264
Decision type
Statement
Jurisdiction
UK Government
Decision date
21 April 2026
Outcome
Closed After Initial Enquiries
Responsible body
Legal Aid Agency

Complaint summary

AI
Summary
Mr E complained the Legal Aid Agency pursued him for a debt of £3,586.50 due to an incorrect change of address, leading him to miss correspondence and be unaware of outstanding payments.

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Data from PHSO under Open Government Licence.