Legal Aid Remuneration for Counsel in Civil (Non-Family) Proceedings

24 October 2011

This Note is to alert chambers to the effect on barristers' remuneration in civil legal aid cases resulting from the Community Legal Service Funding Amendment No 2 Order: (SI 2011 No.2006) and to invite comments as to any amendments required to this Order.

Schedule 7 of the Order specifies new hourly rates which the Legal Services Commission (LSC) will pay to counsel in civil (non-family) proceedings when it assesses counsel's fees. These purport to be a 10% reduction on existing "benchmark" rates. The Bar Council does not recognise these rates.

The new reduced rates will not apply to work done under existing certificates (where the application for funding was signed before 3 October and where the application was received by the LSC before 10 October 2011). It will apply to all subsequent certificates.

The only discretion provided by Article 5C(3) is one to increase the hourly rates to be paid to junior counsel (defined as a barrister of less than 10 years' Call) in the County Court.

On 15 September 2011, the Chairman of the Bar wrote to Ministry of Justice (MoJ) seeking clarification on a number of issues about Article 5C and Schedule 7 of the Order. In particular, the schedule fails to specify fees in a number of relevant scenarios. The LSC has confirmed that in these circumstances, fees will be "at large", namely at the discretion of the assessing officer.

On 22 September, the MoJ responded stating that it intends to bring forward an Amendment Order, as soon as practical, to give effect to the prescribed rates in a number of additional scenarios. A schedule has been provided specifying these rates. This schedule proposes that junior counsel will be paid less for appearing in the High Court (£112.50 per hour) than the London Rate in a County Court (£135 per hour with discretion to increase this). This is just one example of the arbitrary nature of the new rates.

The MoJ has clarified the circumstances when the "London Rate" (£135 as opposed to £112.50 per hour) will be paid to junior counsel in County Courts, namely where the barrister's chambers is in the LSC's London Region, as defined by the LSC Regional Arrangements 2000. It is unclear why this London weighting does not apply to the Higher Courts.

The MoJ has invited the Bar to submit any further comments by Thursday 24 November with a view to consulting on the text of a draft Funding Order before the end of the year and to laying the necessary amending Order in early 2012. We welcome this opportunity for a constructive dialogue.

We must recognise the context within which the MoJ will consider any amendments, namely a 10% reduction applied to the fees being paid to counsel prior to October. We remain of the view that the 10% reduction has been applied to figures significantly below those rates and we would welcome evidence to support this contention. However, as is apparent from the further exchange of letters dated 30 September and 20 October, it is apparent that the MoJ is not willing to discuss the basis of the new rates.

Any comments and evidence to challenge these figures should be sent to Marie Bray.

Robert Latham
Vice Chair (Civil) Remuneration Committee