Press Release
Tailored fixed fee scheme extended until April 2007
6 October 2005
The Legal Services Commission (LSC) is pleased to announce the tailored fixed fee scheme will be extended until April 2007.
As part of a recent review of the scheme, which became mandatory in April 2005, solicitors participating in the scheme have provided feedback to the LSC. The LSC has listened to this feedback and the early indications are that the scheme has been a success, and solicitors would welcome a period of stability before further changes are introduced.
Since April 2005, all civil controlled work (Legal Help), except immigration, some mental health work and family work undertaken by providers taking part in the Family Advice and Information pilot, has been included in the tailored fixed fee scheme.
The scheme has enabled legal aid firms to calculate their income with greater certainty, as costs compliance audits no longer take place in most cases. This has enabled firms to plan more effectively. Firms have also been able to increase their profitability as they benefit from any efficiency savings they make and the tailored fixed fee includes a 2.5% uplift on their previous average case costs.
Karl Demian, Director of Contract Design and Remuneration at the LSC, said: “I am very pleased to be able to extend the tailored fixed fee scheme until April 2007. Our discussions with firms and their representative bodies indicate that the introduction of the scheme has gone well and we are pleased with the results in its first year.
“When we introduced tailored fixed fees we anticipated they would only remain in place until April 2006. However, we have listened to our providers calls for more long-term financial stability. Continuing the tailored fixed fee scheme until April 2007 will provide this stability and enable us to continue our discussions with them to ensure their views are fed into proposals for future funding arrangements, which are likely to include a move to standard fees.”
Some minor changes will need to be made to the General Civil Contract to enable the scheme to continue. These changes will be consulted on shortly.
Media information
Richard Shand Tel: 020 7759 0491 Email: richard.shand@legalservices.gov.uk
Notes to editors
1. The consultation paper on the tailored fixed fee scheme, A Tailored Fixed Fee Scheme for Civil (Non-Immigration) Controlled Work, was published in July 2004. The consultation paper and a summary of responses to the consultation paper are available from the civil consultations page of this website.
2. Firms were initially able to join the scheme voluntarily until 1 October 2004. Providers who accounted for over 65% of expenditure at the controlled work level (excluding mental health and immigration) voluntarily signed up to the scheme by 1 October 2004.
3. Tailored fixed fees have replaced hourly rates for the initial legal advice and assistance a solicitor provides to a legal aid client.
4. The tailored fixed fee scheme became mandatory from April 2005.
5. Tailored fixed fees were originally expected to be replaced in April 2006 by a fixed fee system using either national or regional averages for categories of law.
Last updated: 28 December 2006