Legal Aid

Keith Vaz Excerpts

Thursday 15th March 2012 Commons Chamber

[Karl Turner]

Some 97% of funding to Citizens Advice will go as a result of the Government’s plans, so my hon. Friend makes a valid point.

I am not just talking about the for-profit providers. The non-profit providers also provide important legal advice to people in our constituencies. I want to attempt to bust a myth that the Government are perpetuating. There seems to be the suggestion that publicly funded lawyers are fat cat lawyers earning fat cat salaries. In reality, publicly funded lawyers, whether solicitors or barristers, earn very modest incomes if funded by legal aid. The Lord Chancellor says that he does not want to hit women and children, but he does want to target fat cat lawyers. Why, then, is he making 53% cuts to social welfare legal aid?

[Keith Vaz (Leicester East) (Lab)]

I declare an interest as a non-practising barrister. I worked for a number of years as a solicitor at a law centre. These cuts will affect some very poorly paid solicitors who work in law centres and who were previously doing work such as immigration before that was taken away. The profession will suffer because we will not be able to attract people and give them the expertise to do this kind of work.

[Karl Turner]

My right hon. Friend makes a very important point and one that solicitors and barristers have raised with me in recent days. There is certainly concern about attracting people into training contracts and even attracting people to study law as a result of the Government’s plans.

As I understand it, £350 million will be removed from legal aid as a result of the Government’s plans. The vast majority of that will be in social welfare law. In an attempt to bust the myth that publicly funded lawyers are fat cat lawyers, I spoke to some legal aid providers in my area today. I spoke with Keith Lomax, the senior managing partner of Davies Gore Lomax, which is based in Leeds. He represents the most vulnerable clients on such issues as housing, debt, welfare benefits and education, particularly special educational needs, and he told me that the Government’s 10% reduction in fees across the board was difficult for his firm to cope with. I was staggered when he told me that his hourly charging rate was £48.24. He charges the Legal Services Commission £3.78 per letter—hardly fat cat lawyers rates. The people who work for him earn very modest incomes—between £18,000 and £24,000 a year for fully qualified solicitors, he tells me.

Tim Durkin, the managing partner of Myer Wolff solicitors in Hull, runs a long-standing firm reliant on legal aid. Mr Durkin estimates that the cuts to his business in relation to child contact and residence applications will amount to about £300,000 per year. He describes that as simply unsustainable.

Max Gold, from the Max Gold partnership in Hull, reports to me that he has not been in a position to pay himself or his solicitors and staff an increase in salary for some six years. He says

“the Government are not living in the real world to describe legally aided lawyers as fat cats”.

In his view, the Labour Government were far from profligate when it came to legal aid. He says that the previous Government were not particularly generous in relation to publicly funded lawyers. However, he says that the previous Government at least understood the requirement to offer legal advice in areas such as social welfare law. Indeed, he also mentions immigration, which is particularly important, given that the other place almost accepted an amendment—it was defeated by, I think, 19 votes—a couple of days ago.

In 2000, there were 10,000 legal providers. There are now 2,000—a reduction of 8,000 firms in the last 12 years. Many closed their doors in the last 12 months. The impact of the cuts on legal aid providers is clear for anybody to see. Many firms that provide help mainly in family and social welfare law will have to withdraw from the market. The Law Society says

“firms already operate on the margins of viability…specialist firms and advice agencies…providing social welfare law services…are likely to be wiped out with catastrophic consequences for people in need”

of legal help. The Law Society says that it

“does not see how many firms can continue to operate in this environment.”

The current changes could reduce firms offering family law by as much as 60%.

The Government’s impact assessment, which accompanies the Green Paper, estimated a 67% decrease in income for law firms in rural areas and a 59% decrease in urban areas. That is simply unsustainable. It will not be economically viable for those firms to continue offering services on such tight margins. The Legal Action Group believes that legal aid will cease to be viable as a nationwide public service, with an overall decrease in civil legal aid to 900 firms, down from 2,000. My concern is about the potential for advice deserts to emerge as a result of those reductions. The impact on access to justice is therefore clear. If no service is available, our constituents will be left to paddle their own canoe. Some 75,000 children and young people are set to lose legal aid. Some 6,000 children under the age of 18 and 69,000 vulnerable young adults aged 18 to 23 will lose access to legal aid in their own right as a result of the Legal Aid, Sentencing and Punishment of Offenders Bill.

The Government claim that advice will be available elsewhere, from places such as the Free Representation Unit, jobcentres and Age UK. That claim has been disputed by the Advice Services Alliance. The Free Representation Unit represents clients in tribunals, but it does not cover the initial advice stages of, say, a welfare claim. The Child Poverty Action Group has stated:

“Unfortunately we do not have the resources to provide direct advice to people who are claiming benefits”.

Age UK has said:

“Our concern is that while it is true that both Age UK nationally and our partners in local Age UKs and Age Concerns do provide some help and advice with welfare benefits it is most often not at a level comparative to that provided through legal aid.”

The Government’s defence until now has been to talk about the telephone advice service. However, that is not the answer to advice deserts. Face-to-face legal advice is crucial. Fortunately, the Government suffered a defeat on this issue in the other place yesterday evening. I would respectfully urge the Government to take that on board. The Ministry of Justice predicts between only 4,000 and 10,000 additional mediation starts, despite withdrawing legal aid from 255,000 cases. It has simply not made a proper assessment.

The impact on for-profit and non-profit providers will be substantial, but it will be most keenly felt by those who rely on their services. The Government’s own impact assessment states that the proposals

“have the potential to disproportionately affect female clients, BAME clients”—

that is, black and minority ethnic clients—

“and ill or disabled people, when compared with the population as a whole”.

Despite that evidence and advice, the Government seem to want to plough on regardless. At a time when unemployment is rising and pressure is increasing on squeezed families, it is wrong for the Government to withdraw support for legal advice.

Opposing the legal aid cuts is not done due to narrow interest or to ensure that lawyers’ bank balances stay buoyant. It is about ensuring that people have not only these important rights but the means with which to exercise them. The Government must listen to the experts and base their cuts on the evidence. The Justice Select Committee, on which I serve, has said that the full cost implications of the Government’s proposals cannot be predicted. I therefore ask the Government to reconsider these cuts and not to take a gamble with justice.

Many eminent judges—not least Lord Hope, Lord Justice Dyson and Lady Hale—have also voiced their concern, along with academics and professionals, telling the Government time and again that there will be an increase in court administration due to the increased number of litigants in person, but that advice has been completely ignored. The Lord Chief Justice has echoed those concerns.

The opposition to the cuts in social welfare legal aid is, for me, about protecting the vulnerable and allowing access to justice. Of course, we are living in a time of austerity, and this must also be about saving money to the taxpayer, but there are alternatives. The early intervention provided for debt, employment, education, housing and family law matters through a mixture of voluntary and private sector organisations offers value for money. I shall not bore the Minister with the statistics produced by Citizens Advice, but it has provided Members with a helpful report that shows, pound for pound, the advantages of providing early advice. Unfortunately, however, the Tory-led Government have ignored crucial advice from, among others, the Lord Chief Justice, the Bar Council of England and Wales, and the Law Society.

The Lord Chief Justice has stated that the proposed reforms of public funding for civil cases will damage access to justice and lead to a huge increase in people fighting their legal battles alone. It is obvious to anyone that litigants in person will delay court time. The hon. Member for South Swindon (Mr Buckland) is in his place. He sits as a recorder in the Crown Court, and he must know from experience the advantage of having a solicitor advocate or a barrister representing a client in court, as opposed to someone representing themselves.

The chairman of the Bar Council, Michael Todd QC, has told me today that

“legal aid barristers, working across a broad range of practice areas, are public servants, overwhelmingly operating in the public interest. Over a number of years, many members of the Bar and the junior Bar in particular, have found it increasingly difficult to sustain a financially viable career on legal aid work, which poses a grave threat to access to justice. Successive fee cuts and now the threatened removal of whole areas of law from the scope of legal aid means that many vulnerable people will be denied effective access to the Courts. It also means that many highly skilled and publicly spirited Barristers will be forced to leave the profession with a particularly heavy impact on female and BAME practitioners. That cannot be in the public interest”.

The Lord Chancellor needs urgently to take on board the defeats that the Government have suffered in the other place, and to look again at the real impact of these legal aid cuts before overturning those amendments in this place.