The Minister of State, Ministry of Justice (Lord McNally)
My Lords, the Legal Services Commission is responsible for the administration of the Legal Aid Fund and has already taken steps to regulate and accelerate payments to legal aid providers. Standard monthly payments are made in advance for advice work completed under contract and, in addition, weekly payments are made on bills submitted for civil representation work. Providers may make interim claims for payments on account while a case is still open.
Baroness Benjamin
I thank my noble friend for that encouraging Answer. As you may well know, these specialist solicitors are not only the lowest paid solicitors in the country but also have to pay tax on unpaid work and are paid by the Government only twice-yearly in arrears. As a result, their businesses are under enormous financial pressure. Some are even going out of business because banks are calling in their loans. This is likely to result in the loss of assistance to the neediest families in our community, especially children. How soon will quarterly payments be implemented?
Lord McNally
My Lords, I can not give a precise answer to that, but the LSC has taken a number of steps to expedite payments to contracted providers and is committed to investigating any claim where a bill is not paid within the correct timescale. While there have recently been some delays in civil bill processing, the LSC maintains that the vast majority of payments are being made within their published target times. I will, however, look at the matter of quarterly payments.
Lord Thomas of Gresford
Is my noble friend aware that the Law Society has had to write to banks, asking them to treat legal aid practitioners with special care, because of a backlog in payments by the Legal Services Commission, and is his response—that they are all paid on time—not a little disingenuous? Is there not a very considerable backlog at the moment?
Lord McNally
My Lords, I did not say that they were all being paid on time, but I did say that the Legal Services Commission is addressing the problem that has arisen. A backlog had built up and the commission faced criticism, but it has addressed the problem and is moving to cut the backlog. So I am not being disingenuous in any way. I am acknowledging that there has been a problem, which the commission is addressing. It maintains that the vast majority of payments are being made within their published target times.
Lord Bach
My Lords, the Question tabled by the noble Baroness is about legal aid practitioners in the field of domestic violence. Based on the incredibly restrictive definition of domestic violence set out in the legal aid Bill currently going through another place, how do the Government propose to protect women who are at risk of domestic violence for the first time?
Lord McNally
My Lords, we will eventually discuss the various scopes in the legal aid Bill. The Government are satisfied with the scopes they have set in the Legal Aid, Sentencing and Punishment of Offenders Bill and believe that they cover the most vulnerable in family and domestic law. But I freely admit that we are going to have some interesting debates on the matter. I hope that that helps the noble Lord. The debate has yet to come to this House.
Lord Elton
My Lords, the noble Lord has referred on a number of occasions to the “target time”. Can he give us the definition of that?
Lord McNally
The target time is, I believe, two weeks for the settlement of accounts.