Legal aid is a fundamental aspect of the justice system in England and Wales. It ensures that individuals who cannot afford legal representation still have access to justice. For legal practitioners providing services under legal aid, the billing and recovery of costs from the Legal Aid Agency (LAA) is a highly regulated process.

Accurate and compliant billing is extremely important for practitioners to be reimbursed for the work they have done on behalf of clients who are legally aided.

ARC Costs provides Legal Aid billing guidance and assistance to law firms providing services that are funded by the Legal Aid Agency.

Recovering costs from the Legal Aid Agency (LAA)

The Legal Aid Agency (LAA) is responsible for administering the legal aid scheme in England and Wales. This includes paying legal professionals for services rendered to legal aid clients. It sets out strict rules governing what can be claimed, how much can be claimed, and the procedures for submitting claims.

The LAA operates under two main legal aid schemes: the Civil Legal Aid Scheme and the Criminal Legal Aid Scheme. Both have their own specific rules, but the principles of billing and cost recovery are largely the same.

The cost recovery process begins as soon as legal aid is granted to a client. Practitioners must ensure they are working within the scope of the legal aid certificate. This outlines the type of work authorised by the LAA. Billing for services beyond the certificate’s scope is not permitted and may result in the rejection of claims.

For certain types of work, particularly routine legal matters, the LAA pays on a fixed-fee basis. These fixed fees are pre-determined amounts that cover specific stages of a case, such as initial consultations, paperwork, and court appearances.

The fixed fees are set out in the Legal Aid Remuneration Regulations and are based on the type of case and geographic location of the solicitor’s firm.

For more complex or lengthy cases, practitioners may be able to claim on an hourly rate basis. Hourly rates are also set by the LAA and vary depending on the type of case (e.g., criminal, civil, family law) and the practitioner’s level of experience. It is important that you keep detailed records of time spent on the case to substantiate any claims for hourly rates.

Legal Aid billing guidance

When work has been completed, the legal aid provider must submit a bill to the LAA for payment. This process is usually carried out via the LAA’s online portal, the Client and Cost Management System (CCMS). The claim must include:

• Details of the work performed.
• Copies of relevant documents, such as court orders or expert reports.
• Evidence of disbursements, such as travel expenses or expert fees.
• Time records (where hourly rates are claimed).

The LAA will scrutinise the claim to ensure that the work falls within the scope of the legal aid certificate and that the costs claimed are reasonable and proportionate. Claims that do not meet these standards may be rejected or reduced.

Disbursements, which are out-of-pocket expenses incurred by the legal aid provider on behalf of the client (e.g., court fees, expert witness fees, travel costs), are recoverable from the LAA but must be reasonable and supported by receipts or invoices. The LAA has strict rules on what disbursements can be claimed and have caps on certain expenses, such as expert fees.

Challenges and appeals

If the LAA reduces or rejects a claim, practitioners can request a review of the decision. The first step is an internal review by the LAA. If the practitioner is dissatisfied with the outcome of the internal review, they can appeal to an independent Costs Judge in the Senior Courts Costs Office. This appeals process ensures that practitioners have recourse if they believe the LAA has unfairly reduced their fees.

Legal Aid billing guidance – How to minimise the risk of rejection

Common issues that arise in legal aid billing include:

• Claims exceeding the scope of the legal aid certificate.
• Insufficient evidence to support the work or disbursements claimed.
• Claims for disproportionate or excessive costs.

To minimise the risk of claims being rejected or reduced, practitioners should:

• Maintain detailed time records.
• Regularly review the legal aid certificate to ensure compliance.
• Submit all necessary documentation with claims.
• Familiarise themselves with LAA guidance on reasonable costs.

How can ARC Costs assist?

Our team of highly skilled Law Costs Draftsmen and Costs Lawyers regularly assist in all types of costs claims, including publicly funded and inter-partes costs claims.

We regularly use the CCMS system to submit legal aid costs claims and deal with all the administration on behalf of our clients and to free up the time of fee earners, thereby ensuring you can recover your maximum legal aid fees in an expeditious and efficient manner. 

Contact us today using the form at the top of the page, via email at info@arccosts.co.uk, or telephone 01204 397302.