Question to the Ministry of Justice:

To ask the Secretary of State for Justice, if she will make an assessment of the potential implications for his policies of the impact of the administration of (a) SSB Law and (b) other firms on the finances of claimants whose legal cases were disrupted; and whether her Department is taking steps to provide (i) redress and (ii) other support for affected people.

The legal profession in England and Wales together with its regulators, operate independently of government. The responsibility for regulating the sector sits with the approved regulators, overseen by the Legal Services Board (LSB). Given the sector’s independence, the Ministry of Justice cannot intervene in individual cases or investigations.

The Government understands the distress and financial uncertainty caused to both individuals and families by the collapse of SSB Law and similar firms. The Solicitors Regulation Authority (SRA), as the body responsible for regulating the professional conduct of solicitors, as well as most law firms in England and Wales, has now completed its investigation into the collapse of SSB Law and has given disciplinary notices to several individuals. The SRA is also progressing its investigation into Pure Legal and the solicitors involved, and aims to make decisions before the summer regarding this disciplinary process. The SRA published an update on this issue on 25 February, which is available on their website: SRA | Cavity wall insulation claims handled by SSB Group (SSB) and Pure Legal Limited (Pure Legal) | Solicitors Regulation Authority.

I recently met with the SRA to ensure that lessons are learned from the SSB Law firm collapse and urged regulators to respond more proactively to these issues. It is crucial that steps are taken to prevent this type of situation from happening again.

As the oversight regulator, the LSB is also conducting an independent review into the SRA’s regulatory action in the lead-up to SSB Law’s collapse. It is right for the Department to wait until these ongoing investigations are complete and to review the findings, before considering any next steps in this area.

The Department is aware that some individuals involved in these claims have received unexpected demands for legal costs. Former clients of SSB Law have options for redress available to them, and they may be able to seek redress through making a negligence claim on SSB’s insurance.

The SRA has published a warning notice to law firms, especially those engaged in high volume claims work, about prohibited marketing practices, such as cold calling. Alongside the warning notice, the SRA also published a no win no fee guide to help inform consumer choices: SRA | No win, no fee agreements: A guide to navigating them | Solicitors Regulation Authority.

While these no win no fee agreements play a vital role in access to justice, we recognise the concerns raised about their operation. The Ministry of Justice is working closely with regulators to assess the potential need for further consumer protections.