header-logo header-logo

05 September 2013
Issue: 7574 / Categories: Legal News , Legal aid focus
printer mail-detail

Call for national legal support fund

Solicitors to pay in dormant funds & City firms to sponsor major initiatives

Levies on payday loan companies and financial penalties on government contractors for faulty social security assessments could be used to fund legal advice centres, an influential think-tank has proposed.

The Low Commission, established by the Legal Action Group last October to develop a strategy for the future provision of social welfare law when the next government is formed in 2015, has collected the views of more than 230 individuals and organisations.

Its draft report estimates  that “there is about £400m per year available to fund advice and legal support services – mainly coming from local authorities, the Money Advice Service and the legal aid that remains for social welfare law”, and that a further £100m is needed each year to ensure basic provision.
It advocates the creation of a national advice and legal support fund of £50m per year for 10 years to fund advice and legal support work. Funds would be drawn from central government, with 90% of the money going to local authorities and the remainder for national initiatives.

To help finance this, and to promote good decision making, government contractors could be penalised on a “polluter pays” principle for decisions that are later overturned. The other £50m would come from statutory, voluntary and commercial bodies. The report suggests, for example, that the Financial Conduct Authority impose a levy on payday loan companies, while solicitors pay in any dormant funds relating to dissolved companies and unclaimed damages in collective actions, and City law firms sponsor national initiatives.
 

However, it says millions of pounds could be saved if public services bodies got decisions right in the first place, for example, 35% of the 340,000 welfare benefits appeals in 2011-2012, which cost £66m, were upheld.
Its other recommendations include a national legal helpline and more support for Mackenzie Friends. The Commission, chaired by Lord Colin Low, is asking for responses to its proposals by the end of this month, and will publish its final report in December.

Issue: 7574 / Categories: Legal News , Legal aid focus
printer mail-details

MOVERS & SHAKERS

Browne Jacobson—Simone Ketchell

Browne Jacobson—Simone Ketchell

Browne Jacobson adds top property litigation Partner in record real estate expansion

Fieldfisher—Megan Goodyer

Fieldfisher—Megan Goodyer

Fieldfisher expands Personal Injury team with impressive partner from Stewarts

Clyde & Co—Jack Holling

Clyde & Co—Jack Holling

Global firm strengthens insurance practice with appointment of partner

NEWS
Should every solicitor found to have acted dishonestly face automatic striking off? The answer, argues John Gould, chair of Russell-Cooke LLP in NLJ this week, is no 
Winning an arbitral award against a state is one thing; enforcing it is another
Can government success in court tell us whether the rule of law is healthy? 
Poorly drafted dispute resolution clauses can trigger litigation before the real dispute is even addressed
As cryptocurrency becomes mainstream, family lawyers are increasingly confronting the challenges it creates on divorce
back-to-top-scroll