Recently, there has been a growing call to increase legal aid fees, driven by concerns that the current rates are insufficient to maintain a functional legal aid system. Lawyers, particularly those representing vulnerable and low-income clients, argue that legal aid fees have not kept pace with inflation.

An independent economic analysis on the sustainability of civil legal aid has led the Law Society to urge a 20% fee increase as a temporary measure to prevent the struggling sector from collapsing.

The government is under increasing pressure from legal professionals and advocacy groups to review and raise the fees to ensure that the legal aid system remains sustainable. Many point to the risk of an underfunded system that could worsen waiting times in the justice system, leaving those most in need of legal advice without proper representation. The debate is centred on balancing financial responsibility with the necessity of maintaining a fair and accessible legal system for all.

What is legal aid?

In the UK, legal aid provides financial assistance to individuals who cannot afford legal representation or advice in civil and criminal cases. The system is designed to ensure access to justice, allowing people to defend or pursue legal matters even if they lack the means to pay for a solicitor or barrister. Legal aid is administered by the Legal Aid Agency, which is part of the Ministry of Justice.

Common areas covered by legal aid include:

Criminal defence: Court duty solicitors can provide representation for those involved in criminal legal aid cases and those in the Crown Court.

Family law: Issues like divorce, child custody, and domestic violence cases. Legal aid can provide funding for family mediation.

Housing: Assistance with eviction, foreclosure, and landlord-tenant disputes.

Immigration: Help with visas, asylum, and deportation proceedings.

Consumer rights: Issues like debt, bankruptcy, or consumer fraud.

Court of protection: Legal aid can play an important role in Court of Protection cases in the UK, particularly for individuals who lack the mental capacity to do so.

Legal aid ensures that the legal system remains fair and accessible for everyone, regardless of their financial situation.

Current legal aid fees

Current legal aid fees vary depending on the type of case and location. Solicitors in civil legal aid work are paid according to a set of hourly rates based on complexity and region. For instance, the guideline rates for solicitors in areas like London or other major cities are typically higher than those in more rural areas​.

Legal aid rates in the UK have remained largely unchanged since 1996, with many in the legal profession noting a significant reduction in the real value of these fees.  In addition in 2013, there was actually a 10% cut implemented to hourly rates, which has exacerbated the financial strain on legal aid solicitors in view of increased inflation in recent years. Here are some current rates for legal aid in the UK:

Civil legal aid rates (housing, debt, actions against Police, clinical negligence): These apply to various areas like housing, family law, immigration, and mental health. Solicitors are typically paid by the hour, with rates differing for work in London and outside of London. Common hourly rates for solicitors include:

• London: £63ph up to to £71.55ph depending on the complexity and area of law, and whether the matter is in the County or High Court
• Outside London: £59.40 to £67.50 per hour

Family law legal aid: For family law cases (e.g., domestic abuse, child custody), rates depend on whether the case involves court representation or advice:

• London: £59.40ph up to to £70.56ph depending on whether the matter is in the County or High Court
• Outside London: £54.90 to £65.75 per hour, with advocacy rates being £56.70 for County Court work.

Enhancement: For civil work, enhancement can be claimed on complex and non-routine items of work where justified.  In the County Court this is up to 50%, and in the High Court this is up to 100%.

Whilst these hourly rates and enhancement possibilities may appear high rates to an individual, as a business operating with staff and other office overheads, the ability to complete legal aid work profitably, and to sustain the business, is extremely difficult.

These rates should also be considered against the backdrop of an increase to Guideline Hourly Rates in 2024 for inter-partes work for civil disputes, whereby non-London Solicitors can recover between £134 – £278ph dependant upon experience, and within London between £138 – £546ph.

Law firms working within these areas of work can often be struggling to make ends meet, particularly in light of fixed costs reforms brough in on 1 October 2023, and it is therefore understandable why firms operating a legal aid work model are significantly struggling.

Calls for an increase in legal aid fees

The number of civil legal aid providers has fallen by 19% over the last five years, this is simply because the work has become less and less profitable and providers have moved to provide legal services in other areas.  This naturally leads to a loss of access to justice for the poorest in society. To maintain this “essential public service,” the Law Society has urged the government to increase fees by 20%, requiring an investment of £134 million. This would include £17 million for early advice in critical areas, £4.3 million for housing issues, and £32 million for family cases involving domestic abuse.

Research commissioned by Chancery Lane and conducted by Frontier Economics revealed that if reforms to housing legal aid reduced severe housing disrepair by just 5%, the NHS could save £15 million annually. However, lawyers incur financial losses when working on housing legal aid cases.

The Society states that this additional funding would significantly help preserve public access to the civil justice system, while allowing time for the civil legal aid review—initiated by the previous government—to continue and complete its assessment.

The Ministry of Justice (MoJ) is conducting a comprehensive review of civil legal aid, which is expected to address various issues including fee structures. The review will encompass all categories of civil legal aid, with a focus on family, housing, mental health, and immigration law​. Final recommendations may lead to further adjustments in legal aid fixed fees and practices​.

Recovering costs from the Legal Aid Agency

Solicitors and law firms may seek to recover costs from the Legal Aid Agency (LAA) when they have provided legal services to clients who were funded through legal aid. This process involves requesting reimbursement for the costs incurred while representing clients who received legal aid for their cases.

Solicitors who provide legal services under the legal aid scheme are able to recover their costs from the LAA. You must quantify your costs and submit either a Payments on Account (POAs) or an interim or final bill for aspects of work completed.

It is worth noting that the LAA has specific rules you must follow when submitting your invoices, and our Costs Draftsmen can assist you with this to ensure everything is submitted correctly.

When bills are submitted to the LAA, they will be checked to ensure all the guidelines have been complied with. Once accepted, it is typical for the legal aid agency to request evidence in support of the work carried out by the solicitor, such as supporting court documents and invoices, before paying the solicitor for their work.

Some solicitors may be paid for 100% of their work completed. However, some reductions may also be applied if the LAA deem the amounts being claimed as incorrect or unreasonable.

Our team of legal aid costs draftsmen are specialists in claiming back costs through the LAA for our clients and also processing via the CCMS system, working to maximise your costs recovery.

It is also worth noting that in exceptional costs cases (in which a fixed fee does not apply), the cost of utilising our Costs Draftsmen preparing your Bill can be recovered from the LAA.

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.

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