On 5 September UK Justice Secretary Chris Grayling announced that he has dropped proposals to introduce price competitive tendering for legal aid contracts. The proposals had been criticised on the basis that price competitive tendering would allow the legal aid market to be dominated by a small number of large firms while smaller, more specialised law firms would be driven out of business.
Bulletin readers may recall that a consultation on legal aid cuts in England and Wales prompted outcry from the legal profession with protests in London and Manchester. The proposal to introduce price competitive tendering was one of a number of controversial measures. Others proposed reforms included the removal of the possibility for legal aid clients to select their own solicitor and the introduction of a flat rate fee regardless of whether or not the client pleads guilty. As not guilty pleas are more expensive and time consuming, many in the legal profession expressed concern that this would create a financial incentive for solicitors to encourage clients to plead guilty.
The announcement that price competitive tendering has been dropped is the second major climb-down since the consultation closed in June. In July, Mr Grayling announced that proposals to remove the possibility for legal aid clients to choose their own solicitor had been reversed.
Click here to read an article in the Guardian on the reversal of proposals relating to client choice.
Discussing the reforms with MPs Grayling said, "I have listened to lawyers' concerns and had constructive discussions with the Law Society. They acknowledge that, while it may be difficult, change is also inevitable. But it must be the right change that brings about the right outcomes. The proposals we have agreed make sure legally aided lawyers will always be available when needed and that people can choose the lawyer they want to help them.
"Even after these reforms, we will still have one of the most generous legal aid systems in the world. I want to ensure the limited money we have is concentrated on those cases and people who need it most."
Click here to view a factsheet compiled by the South Eastern Circuit comparing UK spending on legal aid with other countries.
Click here to read an article in the Guardian criticising the proposed legal aid cuts.