Legal aid is necessary for ensuring access to justice for individuals who cannot afford legal representation. For Solicitors and Barristers undertaking legal aid work, managing cash flow during lengthy or complex cases is essential as otherwise leaving payment of costs until conclusion, can prevent the legal assistance provider from taking on further matters and assisting others. The ability to request payments on account (also referred to as POAs) from the Legal Aid Agency (LAA) is used to support cash flow for legal professionals.

What Are Legal Aid Payments on Account (POAs)?

Legal Aid payments on account are interim payments made by the Legal Aid Agency to legal aid providers before a case concludes. These payments allow practitioners to recover some of their incurred costs without waiting for the final bill to be submitted and assessed at the end of the case. This is especially useful in protracted matters such as care proceedings, complex criminal trials, or multi-day family hearings.

When Can a Payment On Account be Requested?

The rules on when and how a payment on account can be requested depend on the funding certificate type and case stage. In general:

• Civil cases (certificated work): A POA may be requested if the case has been ongoing for a significant period and substantial costs have been incurred. There is no strict timeline, but a common threshold is when at least £1,000 in work has been done and up to 80% of profit costs incurred to date can be claimed on account, and the certificate has to be have been held for atleast 3 months.
• Criminal cases: In Crown Court cases funded through legal aid, advocates and solicitors may request POAs once a certain portion of the case has been completed, or in exceptional cases where delay in final payment would be unreasonable.
• Family cases: For certificated family law work, such as private law children proceedings or public law care proceedings, POAs are common and help firms manage ongoing costs over a long period.  Similar to civil proceedings, the certificate has to have been active for atleast 3 months and up to 80% of profit costs can be claimed.

In all instances, disbursements can be claimed as a payment on account on a 100% basis.  This does not mean however, the said disbursement will be allowed in full on assessment of any final costs claim.

How to Apply

Applications for payments on account are usually made through the Legal Aid Agency’s digital systems:

• CCMS (Client and Cost Management System) for civil and family matters.
• CWA (Contracted Work and Administration system) for certain criminal and civil claims.

The practitioner must detail the work done, costs incurred, and justify the request.  We strongly recommend at this juncture you instruct a legal aid specialist Costs Draftsman or Costs Lawyer to ensure you capture the full extent of costs incurred to date, so as to maximise your cashflow and ensure there will be no inconsistencies with any final costs claim at the conclusion of proceedings.

Supporting documentation such as time records and disbursement receipts are often requested by the LAA in support of an POA request, so it is essential to have your evidence in order prior to submitting any request. The Legal Aid Agency will then assess the application and, if satisfied, release a portion of the claimed costs.

Limitations and Considerations

Payments on account are not guaranteed and may not cover the full amount claimed. The Legal Aid Agency typically pays a percentage (often around 80%) of the claimed amount to allow for adjustments during final assessment.

It is important to keep accurate and detailed records to avoid delays or reductions. If a Payment On Account is overpaid, issues may be raised as to overclaiming of costs when it comes to assess your final costs claim.

It is important to note that a POA is a loan.  It must be repaid and is usually offset against the final costs claim submitted once the work under the legal aid certificate has been completed.  If you overclaim a payment on account, it will be flagged by the LAA and the POA will be recouped as against your final costs settlement, and any excess must be repaid.

In high-cost or exceptional cases, firms may agree a case plan with the Legal Aid Agency, allowing scheduled Payment On Accounts at set milestones.

How can ARC Costs Assist?

At ARC Costs, 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 request legal aid payments on account of costs.

Contact us today using the form at the top of the page, via email at info@arccosts.co.uk, or telephone one of our legal aid experts on 01204 397302.

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