Hundreds of law firms facing closure were handed a lifeline today under legal aid reforms which will ease the threat to some of London’s most prominent solicitors.
Justice Secretary Chris Grayling disclosed he will not proceed with proposals to award criminal legal aid contracts to firms submitting the lowest bids.
That system, known as price competitive tendering, would have seen the number of criminal legal aid firms nationally falling from 1,600 to 400.
Imran Khan, the London solicitor who represents Stephen Lawrence’s family, had warned it could force his firm — and other small high street specialists in areas of law such as rape and police misconduct — out of business.
Mr Grayling has now agreed that an “unlimited” number of law firms will be allowed to continue to provide legal aid work, so long as they meet quality standards, in a reform which will also ensure that criminal suspects will remain able to choose their solicitor. However, fees for criminal legal aid will be slashed by 17.5 per cent in phases by 2015 — prompting warnings about the future viability of a career in criminal legal aid.
The reforms package, intended to save £220 million by 2018, also includes the removal of legal aid for prisoners, a means test to stop defendants with annual disposable income of £37,500 or above receiving public money to fight their cases, and a residency test to stop people with little or no connection to the UK receiving taxpayers’ funds.
Mr Grayling said he had listened to concerns and revised the plans in co-operation with the Law Society. He added: “Even after these reforms, we will still have one of the most generous legal aid systems in the world. I want to ensure the limited money we have is concentrated on those cases and people who need it most.”
A six-week consultation on the new proposals, which also include changes to barristers’ fees, will be held before final reforms are implemented.
