Tuesday, 21 June 2011


There are lots of legal aid changes announced today:


Will review in detail at some later date -

The one which immediately struck me was this one:

Having considered the responses to the consultation questions on 
alternative sources of funding, the Government has decided to introduce 
a Supplementary Legal Aid Scheme, under which 25% of all damages 
successfully claimed, other than damages for future care and loss, in 
cases funded by legal aid will be recovered by the legal aid fund. This will 
include cases funded through the exceptional funding mechanism. 

So in essence the Legal Aid position will mirror the new Contingent Fee position (which was announced in March when HMG accepted Jackson LJ's proposals) - whereby instead of the Defendant paying the lawyers, then the lawyers will be paid out of damages - in both cases fixed at 25% - with a 10% rise in general damages to compensate.

So both Contingent fee funded and legally aided lawyers will have a vested interest in increasing the level of damages because damages will now equal profit for lawyers.  How far we have fallen.......

1 comment:

  1. I agree on CFAs, but increasing damages in legal aid claims won't equal profit for the solicitors. The 25% is taken for the legal aid fund. Any change in damages would have no impact on costs for the solicitors. Of course, in any successful claim, the legal aid costs would be repaid in full anyway, so this is an additional 25% cream off for the fund. In legal aid cases, the only interest in increasing damages would be to secure a higher figure for the client in view of the 25% deduction.