Press Releases pre-May 2010

The Legal Services Commission (LSC), Law Society and Ministry of Justice (MoJ) today announced they have reached agreement on the best way forward following the Court of Appeal’s judgment on the Unified Contract. This will ensure a period of certainty and stability for providers of legal aid.

The three organisations have published a joint statement detailing the outcome of negotiations that have taken place following the judgment in November 2007. 

The LSC and MoJ accept that the Court of Appeal found in favour of The Law Society’s arguments that Clause 13.1 of the Unified Contract did not comply with 2006 European regulations on public contracts, and regret that the implications of those regulations were not recognised by anyone at an earlier stage.

The Law Society has agreed to discontinue further litigation.

As a result of this agreement, we anticipate that the civil Unified Contract will run its course until April 2010. The LSC will be working with The Law Society and others on the likely content of future contracts over the next few months, with plans to undertake a full consultation later this year.

As part of the agreement, the LSC and MoJ have agreed to:

• targeted increases in some of the fees in the civil fees schemes already introduced 
• not introduce full implementation of best value tendering for mainstream civil legal aid services until 2013, with pilots proposed in some areas between 2010 and 2013
• delay until July 2009 the introduction of any best value tendering scheme for criminal defence services that may be introduced following a recent consultation
• make new arrangements in respect of historic unrecouped payments on account (meaning payments on account made at least six years ago)
• provide for the right to undertake Remainder Work on the no fault termination of a contract
• make new provisions for the reconciliation of Standard Monthly Payments (SMPs) designed to keep changes to a minimum; and
  not implement further family fee changes for solicitors until April 2010.

The legal aid reform programme continues, and the LSC and MoJ remain fully committed to its objectives of improving client access to quality services and providing value for money for the taxpayer.  The LSC has now delivered the first phase of the legal aid reform programme.  Working closely with The Law Society, other representative bodies and providers, the reforms now progress to the next phase.

Welcoming the agreement, Carolyn Regan, LSC Chief Executive, said:

“The constructive nature of the recent negotiations between The Law Society, MoJ and LSC and the strong commitment from all to continue working collaboratively in the future is, in many ways, the most important outcome and signals a new way forward for all parties.

“The Court of Appeal’s judgment will affect the contractual relationship between the LSC and providers in future.  Contracts need to be clear about the conditions that will apply throughout the term of the contract and amendment clauses cannot be too wide. This means that contracts are likely to be for shorter periods in future and each time new contracts are offered the procurement process will be open to new bidders, as well as existing contract holders.” 
 
Lord Hunt of Kings Heath OBE, the Legal Aid Minister, said:

“This agreement provides a significant period of certainty and stability for civil legal aid providers, enabling them and the LSC adapt to the changes already introduced, and to plan properly for future reforms. The legal aid reform programme will continue and carry on its momentum, because the need for reform is as strong as ever. But I am delighted that we can go forward on a more collaborative basis. That is good news for providers, as well as the public.”    

Media information

• Richard Shand, LSC Press Office, Tel: 020 7759 0491
• Michael Duncan, MoJ Press Office, Tel: 020 7210 8803

Notes to editors

1. Copies of the joint statement from the three organisations are available on the CLS>Unified Contract page.