Not-for-profit Advice Sector

Rehman Chishti Excerpts

Tuesday 6th March 2012 Westminster Hall

[Yvonne Fovargue (Makerfield) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Caton.

I begin with the comments made by the Lord Chancellor and Secretary of State for Justice, who said that the proposed changes to legal aid are not an attack on women and children; they are an attack on fat cat lawyers. Perhaps he could say that to the 1,000 people who used the specialist welfare benefit advice service at the Bolton citizens advice bureau in the month of January alone. Perhaps he could say that to someone like Jeannie, who e-mailed last night, extremely pleased with the result in the House of Lords, saying that perhaps now people like her can leave an extremely dangerous situation and receive the financial help and support to do so before they are murdered.

The changes to legal aid will have a destabilising effect on the funding of advice agencies, law centres and citizens advice bureaux. Hundreds, if not thousands, if not millions, will lose out. The funding cuts will have a disproportionate effect on the not-for-profit sector, which the Government’s own impact assessment agrees will receive 77% of the cuts to civil legal aid. As I have often said, advice agency funding is a bit like a game of Jenga—it is complicated, it is interdependent, and small amounts removed can lead to the whole structure crashing down, leaving vulnerable clients underneath with nowhere else to go.

It is not worth looking at the new position under the Legal Aid, Sentencing and Punishment of Offenders Bill without looking at the current position. Citizens advice bureaux say that they will receive £51.3 million less in 2012-13 than in 2010-11. Law centres have had a 52% cut in their local authority funding. Coupled with the devastating effect that the legal aid cuts will have, citizens advice bureaux will lose £28.4 million, and law centres will lose £6 million and more than 85% of their current legal aid funding. Up to 18 law centres could be lost and up to 50% of citizens advice bureaux—more than 200 bureaux with 1,500 outlets—could close completely. If the changes go through, 100% of law centres and CABs say that they will operate on a vastly reduced service.

In total, the not-for-profit agencies will lose £51 million. In my borough of Wigan there will be a cut of £428,000 for specialist work: the citizens advice bureau loses £133,000, which is 3.5 caseworkers plus their admin support, and the legal aid lawyers, who provide the rest of the social welfare law help, will lose the remainder. These are not fat cat lawyers; they are lawyers working with the most disadvantaged people in their community.

[Rehman Chishti (Gillingham and Rainham) (Con)]

With regard to not-for-profit advice services and centres, has the hon. Lady seen the statement dated 22 November 2011 by the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd), who is the Minister for Civil Society? He says that the Government have committed £16.8 million towards not-for-profit advice centres and services.