CDS News

In February 2009 we introduced a temporary concession to help protect the size of Standard Monthly Payments (SMPs) to solicitors.

We've now reviewed our position and decided that we cannot afford to continue this concession. We made clear when it was introduced that this was a discretionary move that would be subject to review.

There are now very tight constraints on our budget and this temporary concession has been affecting our ability to fund legal aid work in other areas.

As you know, SMPs are designed to reduce the amount of time that providers have to wait for payment during lengthy legal aid cases.

Our temporary concession means that we have been stepping in more quickly than originally agreed to level upwards or ‘reconcile’ any underpayments.

We’ve been doing this when underpayments reach 5% of the actual work billed in the previous 12 months. But from September 2010, we will only step in when underpayments reach 10% of the actual work billed. This is the figure we use for overpayments.

The change has been discussed with the Law Society. It represents a return to the original position we agreed in April 2008 via the Deed of Settlement.

We will continue to provide at least one month’s notice of any payment change we intend to make.

Further information

If you have any queries about the reconciliation of payment to claims on your account or the reconciliation protocol, these can be raised with us by email at the following address: reconciliation@legalservices.gsi.gov.uk  

Further details are on our website under Civil Contracts > Agreement with the Law Society > Reconciliation of standard monthly payments