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Legal services is one of the markets most failing UK consumers, with bankers and insurers among those doing a better job, pioneering European Union research has revealed. Lawyers are just ahead of second-hand car salesmen, however. The Legal Services Consumer Panel has branded the results “embarrassing” and said lawyers will have to up their game significantly if they are to resist competition from alternative business structures.

The Solicitors Regulation Authority (SRA) and Office of Fair Trading (OFT) have each pledged around £30,000 to support the Legal Services Board’s (LSB) research into the will-writing market, Legal Futures can reveal. However, the Law Society has declined to contribute, citing concerns over the impact its involvement could have on how the impartiality of the research is viewed.

An expert advisory group to help the Legal Services Consumer Panel design its Consumer Welfare Index has been unveiled. The index – first announced in the panel’s 2010/11 workplan – will be a basket of indicators that, taken together, will assess whether the legal services reforms are having a positive impact on consumers. It will then form the basis of an annual “consumer health check”.

The Legal Services Consumer Panel could be a surprise victim of the government’s so-called bonfire of the quangos and be merged into Citizens Advice, it has emerged. The panel’s chairwoman, Dianne Hayter, has hit out at the move, saying Citizens Advice would not be able to replicate the role of the panel during a “critical period” in the development of legal regulation as the introduction of alternative business structures nears.

The Legal Ombudsman (LeO) today reopened the debate about whether the details of complaints against lawyers should be published, including their names, with a strong endorsement from the Legal Services Consumer Panel that they should. In a discussion paper that seeks views on how it should approach the publication of complaints data, LeO says a naming policy could benefit consumers and lawyers, but that there could be unintended negative consequences too.