More on Carter I'm sorry to say but the Legal Aid Practitioners Group has today published its response to the DCA/LSC consultation, “Legal Aid: A Sustainable Future.”
Director Richard Miller said,
"A sustainable future is the one thing these proposals have no hope of delivering. Practitioners from across the country and in all fields of law have told us that their firms will close if these changes are introduced. At our conference last Friday, we heard from practitioners who are already laying off staff in readiness for next April when these changes are due to take effect, and preparing to close their businesses. Clients will be struggling to find services from next April unless there is a major rethink."
Miller continued, "Legal aid solicitors act to stop children being wrongly taken into care, to ensure anyone accused of crime gets a fair trial, to help those fleeing torture to get protection, to make sure the elderly and vulnerable get the services and support they need. They save the taxpayer many times more than they cost, by helping people avoid or escape social exclusion and stop being a burden on the benefits system, the criminal justice system, the health system. And they help make us a more civilised society. For doing all this, they currently earn incomes equivalent to teachers and senior nurses, and now the Government wants to squeeze even more 'value for money' out of them."
"Well this stone is out of blood."
An abstract of LAPG response to Carter follows:
The budget
The size of the legal aid budget is a political choice, not an immovable fact of nature.
The pressure on the budget has been caused in large part by changes to the law, procedure and policy on the part of Government and other public bodies, and not by anything within the control of solicitors. Therefore solutions aimed at solicitors will create an unstable and unsustainable situation.
The Legal Aid Impact Test has been a good step in the right direction, but we need it to be applied retrospectively to the changes of the past ten years.
The market
The legal aid market is imperfect, so that market solutions may not work, or may have unforeseen adverse consequences on the supplier base. The Government is a monopoly purchaser. Those who leave the market will not be able to maintain their expertise until there is an opportunity to return. Consumers are not able to judge quality even after they have received services, and post-hoc measurements of quality may be ineffective. Most purchases by consumers are “one-off” rather than regular. Services are not homogenous and have not been sufficiently defined to attach a market price to them. Purchasing under the proposed system will be based on inaccurate and inefficient forecasting of what services will be needed, rather than responding to actual need as it arises.
Legal aid services currently survive in many firms due to cross-subsidy from other fields of work. Lord Carter acknowledges that this should not happen, and that any market should work on the basis of full recovery of the cost of doing the work. This will be difficult, perhaps even impossible, to police with the result that competition on price will not be fair in accordance with normal market rules.
Fixed fees
We object to fixed fees in principle for most types of work. They pay a single fee regardless of the work actually required on a case, where variations are too great to be handled within such a structure. They penalise experts in favour of those doing routine work. They will have an adverse impact on quality and client care.
If fixed fees are to be introduced, then the systems need to be much more sophisticated than those currently proposed. Refinements may include breaking down subject areas into ranges of case types; paying for different stages within civil cases rather than a single fixed fee; or having a number of special issue payments to ensure fair remuneration for cases with particular complicating factors.
Fixed fees are unacceptable without robust “polluter pays” mechanisms across all fields of law, so that solicitors are not unfairly penalised by the inefficiency of others.
The escape provision of four times the fixed fee leaves solicitors open to far too great a risk of substantial work going unpaid for the structure to be economically viable.
By demanding information on cases and reserving the right to take action under “value for money” provisions if solicitors do not do work up to the level of the fixed fees, the LSC is denying the binary logic of a fixed fee system and removing the bureaucratic savings that they themselves assert are an intrinsic part of making the system workable.
Timescale
The timescale proposed for the changes is too short. It does not allow sufficient time to devise the scheme in such a way that it has a reasonable prospect of working without severely damaging client services. The reforms require significant restructuring on the part of firms that cannot be achieved by next April. In most fields, there is no significant pressure on the budget and therefore no urgency to introduce changes.
Crime
The proposals for crime may possibly be made to work, subject to significant refinement and additional resources, in urban areas. In rural areas and market towns, different solutions are required. Those solutions have not been identified.
Fixed fees for police station work carry a risk of abuse by the police, as well as requiring solicitors to carry the burden of police inefficiency.
Rolling up travel and waiting into the standard fee scheme will penalise solicitors for inefficient court listing systems, failures by CPS to prepare properly, failures by prison delivery services to get defendants to Court on time, and for geographical issues beyond their control.
The Crown Court graduated fee proposals unduly penalise solicitors acting in “document-light” cases such as serious assaults in favour of those conducting “document-heavy” cases such as fraud.
Family
Care cases are inherently unsuited to a fixed or graduated fee system. The cases need services that are specifically tailored to the needs of the individual parents and children. The caseloads are too small to generate the necessary balance between gains and losses.
The fees proposed will penalise heavily the experts in this field, and in particular Children Panel members, in favour of those who have not shown such expertise and who conduct less-demanding cases.
The fees will penalise those acting for parents against those acting for children.
The payment of multiple fees where there is more than one child client introduces an irrational random element to the redistribution of fees. Conversely, it has the effect in a case where a solicitor is acting for four children that the solicitor could do £75,000 of work and only receive £20,000. A single such case could bankrupt a firm.
The structure for private law family work is unworkable. Ancillary relief and residence disputes are unsuited to a fixed fee system. Contact cases and domestic violence injunctions could be suited to such a scheme if the rates are right and the appropriate safeguards and escapes are included.
A system which pays the same single fee whether the case involves domestic violence, ancillary relief, children disputes or separate proceedings involving all three is inherently unworkable.
The rates currently offered under this structure are likely to cause a large proportion of the supplier base to abandon publicly funded private law family work.
Immigration
The proposals appear to be a return to the suggested caps on costs from a couple of years ago. The rates on offer are inadequate to enable firms to continue to provide a quality service.
Mental Health
The proposals are based on a misunderstanding as to the law and procedures in this field, and it is therefore very difficult to respond to them.
The proposed system is said to be “cost neutral”, but this is in the context of demanding that solicitors do more cases (because of the abolition of means testing) and more work on cases (hospital meetings) than at present. A proposal that requires solicitors to undertake more work to earn the same fees is not cost neutral. The money to fund these desirable extensions of service in this area must be found from outside the current legal aid budget.
General civil
The proposed regional and national fee schemes are both irrational. They take no account of need, of regional plans, or of the wish to encourage services into areas not presently served. There are local variations in advice needs and in the actions and policies of local authorities, benefits agencies etc that can result in significant variation between areas in the amount of work required on apparently identical cases.
Certain client groups have greater needs which are not addressed, so that the proposals are discriminatory against clients on the grounds of race and disability.
It will not be possible for firms to restructure in order to take on the full range of cases so as to make a system based on averages work. The cases a firm gets depend on whether there is a network of good advice agencies below them, how opponents behave, and the nature of the client group in their catchment area.
The averages are based on the work done by all firms, yet the LSC intends to exclude those providing an inadequate service.
We support the decision not to change the payment mechanism for civil certificated work at this time.