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The Law Society launches legal action against the Legal Aid Agency

LAA failed to consult over moving legal aid cost assessments in-house: Law Society

The Law Society has lodged a judicial review against the Legal Aid Agency (LAA), claiming that it failed to consult properly about a decision to move legal aid cost assessments in-house.

Law Society of England and Wales President Simon Davis said:

"Cost assessments are vital in ensuring that when legal aid practitioners send a bill it is carefully scrutinised and they are properly paid for their work.

"For years, legal aid cost assessments over the value of £2,500 have been conducted by the courts and bills under £2,500 have been assessed by the LAA – a system which has worked well for practitioners and clients alike.

"Calculating cost assessments can be a complicated process which requires a level of skill and experience, and sufficient time. The LAA's predecessor – the Legal Services Commission – transferred larger cost assessments to the courts for this reason.

"In June, the LAA announced they would be moving all cost assessments in-house – which they claimed would allow them to process bills more quickly and help with legal aid firms' cash flow issues during the Covid-19 pandemic. They also launched a consultation with a limited number of practitioner groups.

"However, the LAA did not consult on the decision to transfer the cost assessments in-house, just on which changes were needed to transfer the assessments over from the courts."

The Law Society has raised several key concerns:

Simon Davis added:

"In spite of these concerns about moving cost assessments in-house, the LAA has pressed ahead with this decision – without fairly consulting the profession.

"We have issued proceedings on a protective basis. We invite the LAA to talk to us and engage in a full and proper discussion so that we don't have to carry on with the proceedings.

"It is only right that the profession is fully and fairly consulted in how their bills will be assessed – which will have a significant impact on their business at a time when many firms are already financially stretched."

For the Legal Aid Agency's guidance concerning changes to the cost assessment system, click here.