A group of 119 criminal law firms have warned the government not to mistake their submitting applications for the new legal aid contract for an intention actually to sign it.
A letter backed by all the well-known names in the field told Lord Chancellor Shabana Mahmood that the majority of firms undertaking criminal legal aid work would “preserve their position” by submitting a tender for the new contract by yesterday’s deadline.
The process only began on 1 October for a contract that will run from 1 October 2025 for 10 years.
“However, there is a huge difference between submitting a tender as a result of an artificially swift deadline imposed by the Ministry of Justice (MoJ) and actually seeking and ultimately signing a new contract in 2025.
“Whether firms decide it is financially viable to continue to provide legally aided criminal defence services, and accept the contract offer, or maintain a contract for more than a short period is wholly dependent on whether the new government heeds the warnings of the profession and the High Court.
“We look to the new government to restore rates to a level which will ensure a sustainable future for the profession.”
Earlier this month, the Law Society raised the stakes by advising criminal legal aid firms to carry out ‘viability reviews’ to determine whether they were able continue to provide services, and if they were, “whether scaling back is necessary”.
The letter said the tender was issued before the government had made announcements on three key issues for criminal defence solicitors.
First was the MoJ’s response to the High Court ruling in January 2024 that the decision not to implement the 15% increase in rates recommended by the Bellamy report was irrational.
Second was the last government’s “as yet unfulfilled commitment to a further £21m of funding to increase rates for police station and the youth court”, and third was whether the MoJ would accept the expected recommendations of the Criminal Legal Aid Advisory Board’s report, “which we understand will be recommending an immediate and substantial increase in rates”.
There are fears that the MoJ’s funding could be cut in next week’s Budget and the law firms acknowledged that it was an unprotected department.
“However, failing to invest now will ultimately cost more in the longer term if as predicted the sector ends up with too few firms and too few lawyers willing and able to do the work, and equally as important, a failure to do so will escalate the public crisis of confidence in the efficacy and legitimacy of the criminal justice system.
“Fewer lawyers mean no end to delays for victims and defendants and a greater risk of miscarriages of justice.”
Law Society president Richard Atkinson described the letter as “unprecedented” but said the firms were “plainly right” to issue their warning.
“How can firms make a sound business decision to bid for a new contract, especially one lasting 10 years, without knowing whether these bare minimum criminal legal aid rate increases will ever happen?
“That the tender requires firms to bid before the government outlines its response to the judicial review judgment, and the consultation on police station and youth court fees, is wrong. Both decisions are well overdue.
“We haven’t had any constructive follow-up on the judicial review, and we are considering our options.”
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