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Justice secretary scraps plan to award legal aid contracts to lowest bidder Justice secretary scraps plan to award legal aid contracts to lowest bidder
(about 4 hours later)
Proposals to award legal aid contracts in criminal cases to the lowest bidder are to be scrapped, the justice secretary has confirmed. Controversial proposals to award legal aid contracts in criminal cases to the lowest bidder are to be scrapped, the justice secretary has confirmed.
Unveiling a fresh consultation on legal aid, Chris Grayling told MPs he would drop the highly unpopular plan for price-competitive tendering, which triggered mass street demonstrations by lawyers in London and Manchester. Unveiling a fresh consultation on legal aid, Chris Grayling told MPs on Thursday he would drop the highly unpopular plan for price-competitive tendering, which triggered mass demonstrations by lawyers in London and Manchester.
The MoJ is still seeking to make savings of £220m through cuts of 17.5% in fees paid for legal aid work, which will now be phased in over two years. More remand hearings will also be conducted by email or via video link to reduce courtroom expenditure. The MoJ is still seeking to make savings of £220m through cuts of 17.5% in fees paid for legal aid work, which will now be phased in over two years. More remand hearings will also be conducted by email or via video link to reduce expenditure.
The government had planned to restrict the number of firms representing defendants in police stations and courts from 1,600 to 400. Critics warned that price-competitive tendering would lead to the market being dominated by international contractors such as G4S, Serco and Capita and the ruin of traditional firms of high street solicitors who have local knowledge and legal expertise. The government had planned to restrict the number of firms representing defendants in police stations and courts from 1,600 to 400. Critics warned that price-competitive tendering would lead to the market being dominated by international contractors such as G4S, Serco and Capita and be the ruin of traditional firms of high street solicitors that have local knowledge and specialist expertise.
Grayling confirmed that the MoJ still intended to withdraw legal aid from prisoners, who will now be forced to pursue claims through the prison complaints system. The department will also go ahead with a financial eligibility test denying those with an "annual disposable income of £37,500 a year" and at least £3,000 to spare each month after paying household bills access to legal aid in criminal cases. Grayling said he still intended to withdraw legal aid from prisoners, who will now be forced to pursue claims through the prison complaints system. The MoJ will also go ahead with a financial eligibility test, denying those with an "annual disposable income of £37,500 a year" and at least £3,000 to spare each month after paying household bills access to legal aid in criminal cases.
A process of competitive tendering will, however, be introduced for duty solicitor schemes covering defendants in police stations. Competitive tendering will, however, be introduced for duty solicitor schemes covering otherwise unrepresented defendants in police stations and courts. It will be based on both the firm's legal quality and its long-term financial viability.
Grayling told MPs: "I have listened to lawyers' concerns and had constructive discussions with the Law Society. They acknowledge that, whilst it may be difficult, change is also inevitable. But it must be the right change that brings about the right outcomes. The proposals we have agreed make sure legally aided lawyers will always be available when needed and that people can choose the lawyer they want to help them. Grayling told MPs: "I have listened to lawyers' concerns and had constructive discussions with the Law Society. They acknowledge that, while it may be difficult, change is also inevitable. But it must be the right change that brings about the right outcomes. The proposals we have agreed make sure legally aided lawyers will always be available when needed and that people can choose the lawyer they want to help them.
"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." "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."
In a further concession, the justice secretary said some exceptions would be introduced to the proposed residency test that will prevent those who have lived in the UK for less than 12 months from receiving legal aid. In a further concession, the justice secretary said some exceptions would be introduced to the proposed residency test that will prevent those who have lived in the UK for less than 12 months from receiving legal aid – including "vulnerable" individuals and cases relating to the protection of children.
Grayling added: "I do recognise that a package of changes driven by harsh economic reality is tough, but I cannot change the financial reality I am dealing with. Between 2010 and the end of 2016 the Ministry of Justice is required to reduce its budget by around a third. That has meant, and will continue to mean, tough decisions. But this is not something that is being directed at legal aid alone.
"We want to ensure the entire criminal justice system and legal market is both efficient and sustainable. As part of this I have today appointed Sir Bill Jeffrey to conduct a thorough and independent review of independent criminal advocacy." The MoJ document contains two options for reforming barristers' legal aid fees.
The MoJ has also promised a fresh set of proposals on limiting the funding of judicial review cases. Critics have warned existing plans would prevent ministerial and government decisions from being subjected to effective public scrutiny.
The dropping of price-competitive tendering is the MoJ's second climbdown over changes to legal aid. It has already abandoned proposals that would have prevented defendants from choosing which solicitor represents them.The dropping of price-competitive tendering is the MoJ's second climbdown over changes to legal aid. It has already abandoned proposals that would have prevented defendants from choosing which solicitor represents them.
Ray Shaw, from the London Criminal Courts Solicitors Association (LCCSA), said: "There's still [in the MoJ report] an anticipation of a significant reduction in the number of firms. It will lead to lots of firms sinking. Things are already lean. We have taken so many hits and cuts.
"The idea that it can be done without any significant reduction in the quality of everything in the justice system is laughable".
Kat Craig, the legal director of the human rights organisation Reprieve, said: "Disappointingly, the government remains more focused on cheap headlines than on real justice when it comes to their plans for legal aid.Kat Craig, the legal director of the human rights organisation Reprieve, said: "Disappointingly, the government remains more focused on cheap headlines than on real justice when it comes to their plans for legal aid.
"The reality is that the 'residence test' is the latest in a long line of attempts by the government to silence its critics in the courts. David Cameron and Nick Clegg once thought that torture victims and Gurkhas denied the right to live in Britain deserved their day in court – why are they now backing plans which would shut them out?""The reality is that the 'residence test' is the latest in a long line of attempts by the government to silence its critics in the courts. David Cameron and Nick Clegg once thought that torture victims and Gurkhas denied the right to live in Britain deserved their day in court – why are they now backing plans which would shut them out?"
Sadiq Khan, the shadow justice secretary, welcomed the government's decision to drop its "half-baked and legally illiterate" measures, saying that it exposed "the sloppy way [Grayling] goes about making policy".Sadiq Khan, the shadow justice secretary, welcomed the government's decision to drop its "half-baked and legally illiterate" measures, saying that it exposed "the sloppy way [Grayling] goes about making policy".
He added: "For months, David Cameron and Chris Grayling have dismissed the fears of experts who know better than them, and ignored Labour's warnings of the dire consequences of their plans." Grayling hit back by accusing Labour of having devised price-competitive tending schemes.
Even following the justice secretary's announcement, there was criticism of the remaining proposals by a number of Conservative backbenchers. Sir Edward Garnier, a former solicitor general, warned that without an adequate minimum fee for barristers "there could be a flight from the Bar", depriving the courts of those who might have gone on to become judges. Grayling said junior barristers would be paid a minimum of £225 plus VAT for a full day's court appearance.Even following the justice secretary's announcement, there was criticism of the remaining proposals by a number of Conservative backbenchers. Sir Edward Garnier, a former solicitor general, warned that without an adequate minimum fee for barristers "there could be a flight from the Bar", depriving the courts of those who might have gone on to become judges. Grayling said junior barristers would be paid a minimum of £225 plus VAT for a full day's court appearance.
The Law Society president, Nicholas Fluck, welcomed the proposals as "a shared way forward for a more stable and sustainable criminal legal aid system". He added: "[The lord chancellor] has listened to the concerns of the profession and we are confident that the agreed proposal represents the best achievable outcome for our members and those who rely on legal aid.The Law Society president, Nicholas Fluck, welcomed the proposals as "a shared way forward for a more stable and sustainable criminal legal aid system". He added: "[The lord chancellor] has listened to the concerns of the profession and we are confident that the agreed proposal represents the best achievable outcome for our members and those who rely on legal aid.
"The new proposals will demand considerable change, but offer genuine opportunities for those firms who wish to continue to provide these crucial legal services. Crucially, all firms that meet the required quality standards will be entitled to continue conducting own client work.""The new proposals will demand considerable change, but offer genuine opportunities for those firms who wish to continue to provide these crucial legal services. Crucially, all firms that meet the required quality standards will be entitled to continue conducting own client work."
The revised proposals are likely to force further consolidation in the legal market, with many small firms amalgamating to save on overheads.The revised proposals are likely to force further consolidation in the legal market, with many small firms amalgamating to save on overheads.