Legal Aid, Sentencing and Punishment of Offenders Bill

Debate between Lord Shipley and Baroness Mallalieu

Tuesday 24th January 2012 Lords Chamber

[Baroness Mallalieu]

My Lords, I support this amendment as far as it goes. We are all worried about who will fund organisations such as law centres, which at present are largely reliant on legal aid. Clearly, many of them will go under if there is not some alternative form of funding. What troubles me about the amendment in its present form is that there is absolutely no break on the way in which this Lord Chancellor—or a future Lord Chancellor—may choose to hand out the money. I should like some requirement on him to consult and some way of knowing that a distant Lord Chancellor—of course, not the present one—could not operate for reasons of political expediency, or simply on a whim to withdraw funding from an organisation which, for example, might be involved in action against the Government. Although I welcome the amendment in its present form, I think that it needs more added to it.

[Lord Shipley]

My Lords, I support the amendment moved by my noble friend Lord Thomas of Gresford. It addresses a question that is crucial for the success of legal aid advice at local level. The question is how the Ministry of Justice can deliver its legal aid budget cuts of £130 million out of £250 million while still delivering an effective system of support for legal aid. After a lot of thought, I have concluded that a centralised system of contract procurement is not likely to work well. It would mean high overheads and poor flexibility at a time when a significant number of third-sector providers will be forced to close because of lack of finance, with the consequence of problems that could be sorted out early not being sorted out, and a greater cost to the public purse.

We should note that the Legal Services Commission has very high costs. It spends £120 million on administration. After the cuts, with the new director of legal aid casework, the amount spent on administration is likely still to be around £120 million. That figure is very high. Of course, it includes criminal legal aid, but this has barely been cut at all. However, at local level, the budget cuts will be very significant. They will be in exactly the places that require a seamless service that will enable clients with problems that cut across agencies to benefit from integrated support.

I have a potential solution. I am grateful to Citizens Advice for its suggestion of how we might solve the problem. Could the Legal Services Commission, or its successor body, be moved from centre stage? Could, say, £20 million be reallocated from its administrative budget—which would thereby be reduced to £80 million —to front-line funding based on local legal advice partnerships that would map local advice needs, share back-office services and be based on clear professional standards? There would have to be—