Summary of the findings of "Legal Advice at Local Level"

In June the Ministry of Justice published Legal Advice at Local Level; a study examining the impact upon local advice centres of factors such as legal aid reform, funding and the recession. On the basis of these findings, a series of recommendations are made.

The study recognises the increased pressure on legal advice services as a result of the worsening economic climate, both in terms of the volume and nature of demand for legal service. In particular, there appears to be increased demand for advice concerning "social welfare" areas of law, such as debt, housing and welfare benefits. Providers are also seeing an increase in categories of clients outside of the sector's "conventional client group", such as small-business owners and the self-employed.

The impact of legal aid reform, in particular fixed fees, appears mixed. Concerns relating to the effects on both client and staff diversity do not appear to have been realised, and fees paid generally exceed profit costs. Providers most disadvantaged by the new system are those whose main area of work concerns longer more complex cases or "difficult" clients. The study observes that by maintaining a more balanced case-type mix, many such providers may offset any funding shortfall with quicker more straightforward cases. It is recommended that consideration be given to monitoring claims for these "exceptional" cases and their success levels, as well as increased funding for administrative costs generated by the increase in "New Matter Starts", even for the same client. Concerns amongst providers are noted regarding the perceived increased "paralegalisation" or "cherry-picking" of cases, and the study recommends that consideration be given to developing monitoring systems to identify to what degree this is accurate.

Finally, the study addresses the implementation of five Community Legal Advice Centres/Networks so far, and recommends that steps be taken to monitor the impact of their establishment on other local service providers and other funding streams in the area. It is further recommended that action be taken to encourage and support local authorities in shaping their local centres.

The study was chaired by Lord Bach, and informed and directed by the Local Legal Advice Steering Group, comprising representatives of funders and key advice agencies including Rebecca Wilkie, director of the Bar Pro Bono Unit. An implementation report detailing proposed next steps is to follow in September.