The Parliamentary Under-Secretary of State for Justice (Jeremy Wright)
May I start, as others have, by declaring an interest, as a non-practising barrister? I practised in the field of criminal law and a great deal of what I did was legal aid work.
I congratulate the hon. Member for Brent Central (Sarah Teather) and the right hon. Member for Tottenham (Mr Lammy) on securing this debate, which has been a very good, and understandably passionate, one. Having listened to a good deal of mock outrage from Opposition Members about the absence of the Secretary of State and their being stuck with me—I am trying not to take it personally—it is worth my reminding them of two previous occasions when we have discussed matters of great importance in the context of justice policy. The last statement in this House on a justice matter was about the rehabilitation reforms. It was a statement that Opposition Members had called for repeatedly, but the shadow Secretary of State was not here for it. Neither was he here the last time we had questions on justice matters, when we covered a range of important issues, including legal aid. I am sure we would not want to read too much into that, just as I am sure Opposition Members would not want to read too much into the Secretary of State’s absence today. As hon. Members have said, he will be appearing before the Justice Committee next week to discuss this very matter.
Sadiq Khan
Why does the Minister not just share with us where the Secretary of State is?
Jeremy Wright
I note that the right hon. Gentleman did not take the opportunity to share where he was the last two times, but I suggest that we might want to move on.
This is an important debate, as hon. Members from all parts of the House have said. Before I try to respond to a number of the specific points made—the House will understand that the time constraints we face mean that I will not be able to respond to everything, and I apologise for that in advance—let me say something about the context of these reforms.
It is right to say that the previous round of legal aid reforms, culminating in the Legal Aid, Sentencing and Punishment of Offenders Act 2012, will have already removed about £320 million from the legal aid budget by 2014-15, but those proposals were primarily focused on civil legal aid scope and eligibility. Alongside those changes, we have made sweeping reforms to the central administration of the legal aid system. We have strengthened accountability and introduced a more rigorous approach to financial management by creating the Legal Aid Agency. But the successful delivery of that programme has not eliminated the need for reform. In order to meet the ongoing financial challenges facing the justice system, which many who have spoken have recognised, the Government have had to look again at the cost of civil legal aid, as well as turning their attention to arguably the most difficult part of the legal aid reform agenda: the reform of criminal legal aid.
Jeremy Wright
The position is, as I have just said, that the bulk of the work done under the 2012 Act dealt with civil legal aid and the bulk of the work being done under these proposals will deal with criminal legal aid. The total value of the savings that these reforms would make if fully implemented as currently proposed would be £220 million by 2018-19. That is a significant figure, given our financial circumstances.
Many hon. Members have questioned the need for further reform, while others have said we should go much further. My hon. Friend the Member for Huntingdon (Mr Djanogly) made an interesting speech about more radical options we could pursue. The answer is simple: criminal legal aid accounts for £1 billion of the overall legal aid budget, and in the current financial climate, the Government, being committed to eradicating the deficit and the national debt, cannot overlook such a sizeable portion of Government spending. We have had to make extremely tough choices in other areas, and it would not be right to exclude this one.
Many hon. Members have said that we should look for savings in other areas of the criminal justice system. My hon. Friend the Member for Meon Valley (George Hollingbery) made that point, as did my hon. Friend the Member for Dewsbury (Simon Reevell), my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), my hon. Friend the Member for Waveney (Peter Aldous) and the hon. Members for Hackney South and Shoreditch (Meg Hillier) and for Leeds North West (Greg Mulholland). All of them were right about the importance of looking at other areas. I think we heard some good suggestions today, and of course the Government will look in all those areas for savings, too, but that does not get us away from the need to keep the legal aid budget under proper scrutiny.
The package of proposals on which we have consulted is intended to ensure that our legal aid system commands the confidence of the public—that is important—and remains financially viable both now and in the years ahead. We are looking carefully at the 16,000 responses to the consultation, and, with reference to what my hon. Friend the Member for Brent Central said, I can reassure the House that I and my ministerial colleagues will treat everything said in this debate as important contributions to that process. We will listen carefully to what has been said today as well as to what was said in the consultation.
We are duty bound to ensure, however, that taxpayers’ money is spent only where it is justified and only on those who genuinely need the state’s assistance. The taxpayers, who fund the legal aid scheme, have every right to demand that their money be well spent and to ask important questions. They have a right to ask why the taxpayer should be paying the legal costs of the very wealthiest Crown court defendants up front; why the taxpayer should be paying for criminal legal aid for claims made by prisoners that can be better resolved by other means—I will return in a moment to prisoner law— and why the taxpayer should pay the legal costs of those with no strong connection to the UK.
As others have said, our legal aid budget is disproportionately high. My hon. Friend the Member for Bromley and Chislehurst (Robert Neill) made that point very effectively. We have an extremely good legal system—it is greatly admired and, as others have said, it contributes significantly to our society—but that does not mean that it should be immune to the realities that the Government face. Efficiencies have to be made, and reform is the mechanism for achieving them.
Mr Lammy
No one is suggesting that there should not be reform. Has the Minister considered the fact that 45% of criminal legal aid goes on high-cost cases, many involving bank fraud? Why does he not ask the banking industry to come up with an insurance scheme and take that out, rather than dismantling the whole system?
Jeremy Wright
The right hon. Gentleman is right that very high-cost criminal cases are an important area for us to focus on, and we propose to take about 30% of the cost of those cases out of the system, but he would be wrong to assume that those cases, on their own, could achieve the savings we need to make. We need to look more broadly.
I want to turn to the particular proposals and concerns that hon. Members have concentrated on. Many Members have focused on the effect of the proposals on smaller firms and on the issue of price competitive tendering. In 2011, we said that competitive tendering would likely be the best way to ensure long-term sustainability and value for money in the legal aid market. Some Members were concerned that this was a new idea suddenly springing into the political landscape, but of course that is not the case. Indeed, the right hon. Member for Tooting (Sadiq Khan)was gracious enough to point out that the idea was first considered under his Government. In March 2010, the last Government produced a Green Paper entitled, “Restructuring the Delivery of Criminal Defence Services”. Among other things, it said:
“Currently the criminal defence service is highly fragmented, with a large number of small suppliers and relatively few large suppliers….We believe that these market trends are not sustainable. Therefore we believe a future tendering process would ensure a more consolidated market, with a smaller number of more efficient suppliers, required to undertake the full range of the services we need.”
That is what the Labour party thought in 2010, and lest we should run away with the thought that it has changed its view since then, let me quote from what I am sure is a very well-read blog written in October 2011 by the right hon. Member for Tooting. He said—as, to be fair, he also said today—that:
“I recognise that cuts need to be made…I would have carried through a new scheme for contracting of solicitors for criminal legal aid and lowered criminal defence advocate fees in the Crown Court…This more efficient contracting of legal services from solicitors has bizarrely not been implemented by the coalition government”.
So he criticises us for not doing it, then he comes here and criticises us for proposing to do it.
Another point that has been made repeatedly today is the effect that the proposals could have on smaller firms. I need to make it clear that the proposed competition model would see the number of contracts, not the number of firms, reduced from 1,600 to 400. Our proposals do not prescribe how many lawyers should be available or how those that have the contracts should divide up the work allocated to them.
The matter of client choice has also been raised by many hon. Members today. We have listened carefully to the concerns that have been raised not only in the debate but by those who responded to the consultation. Let me reassure the House that quality-assured duty solicitors and lawyers will still be available, just as they are now. The Legal Aid Agency will need to ensure, as part of the tendering process, that all providers are capable of delivering the full range of criminal legal aid services across their procurement areas. That is also true in relation to the points raised about rural sparsity and about the Welsh language.
We have a number of things to consider, and we will consider them carefully. We will come back with our conclusions in the autumn. I am grateful that the debate has taken place today and for all the contributions that have been made. We will consider them properly and respond accordingly in the autumn.