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Legal aid U-turn over price competition plan Legal aid U-turn over price competition plan
(about 1 hour later)
Plans to cut the legal aid bill by awarding contracts to the lowest bidder have been dropped, Justice Secretary Chris Grayling has announced.Plans to cut the legal aid bill by awarding contracts to the lowest bidder have been dropped, Justice Secretary Chris Grayling has announced.
In an interview with the Times newspaper, Mr Grayling said the move was part of a deal he had reached with the Law Society for England and Wales.In an interview with the Times newspaper, Mr Grayling said the move was part of a deal he had reached with the Law Society for England and Wales.
Opponents of the policy had warned the policy would "irrevocably damage the criminal justice system".Opponents of the policy had warned the policy would "irrevocably damage the criminal justice system".
But other cuts to legal aid are expected to go ahead.But other cuts to legal aid are expected to go ahead.
Ministers had intended to introduce price competitive tendering (PCT) as part of a string of reforms aiming to cut the £2bn annual legal aid bill in England and Wales by £350m a year.Ministers had intended to introduce price competitive tendering (PCT) as part of a string of reforms aiming to cut the £2bn annual legal aid bill in England and Wales by £350m a year.
While this change will be dropped, other savings are expected to be found by bringing in a cap on contracts for duty solicitor work at police stations. BBC legal correspondent Clive Coleman said the proposal was very controversial, with concerns that the lowest bid would win in a "race to the bottom" which could impact quality.
A 17.5% cut in all legal aid fees is also due to be phased in by 2015. He said that while the bidding proposal had been scrapped other savings would go ahead as the government remained committed to saving money on the UK's legal system - which is the most expensive in the world.
'Factory mentality''Factory mentality'
The government also plans to set up a working party to look at how thousands of short hearings can be avoided, or dealt with by email or video link, BBC legal correspondent Clive Coleman said. The government wants to reduce the number of legal aid providers from about 1,600 to 400.
It plans to put a cap on contracts for duty solicitor work at police stations and to reduce legal aid fees by 17.5% across the board.
The government also plans to set up a working party to look at how thousands of short hearings can be avoided, or dealt with by email or video link.
Its final proposals on legal aid reform will be subject to a six-week consultation, our correspondent added.Its final proposals on legal aid reform will be subject to a six-week consultation, our correspondent added.
In a Commons debate on Wednesday, Labour MP Karl Turner had warned: "The government's proposals for PCT will irrevocably damage the criminal justice system.In a Commons debate on Wednesday, Labour MP Karl Turner had warned: "The government's proposals for PCT will irrevocably damage the criminal justice system.
"PCT will inevitably lead to the market being dominated by the big multinationals, the usual suspects - G4S, Serco, Capita."PCT will inevitably lead to the market being dominated by the big multinationals, the usual suspects - G4S, Serco, Capita.
"And I fear many new entrants to the market who have absolutely no experience whatsoever in delivering criminal justice will dominate the market.""And I fear many new entrants to the market who have absolutely no experience whatsoever in delivering criminal justice will dominate the market."
He warned it would no longer be viable for "small businesses, the expert businesses who have established their practices over a number of years" to "continue to exist".He warned it would no longer be viable for "small businesses, the expert businesses who have established their practices over a number of years" to "continue to exist".
Mr Turner concluded: "We will see the cornerstone of a civilised society reduced to a factory mentality where quantity will trump quality at each and every time."Mr Turner concluded: "We will see the cornerstone of a civilised society reduced to a factory mentality where quantity will trump quality at each and every time."