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05 September 2013
Issue: 7574 / Categories: Legal News , Legal aid focus
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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
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MOVERS & SHAKERS

Gateley Legal—Caroline Pope & Bob Maynard

Gateley Legal—Caroline Pope & Bob Maynard

Construction team bolstered by hire of senior consultant duo

Switalskis—four appointments

Switalskis—four appointments

Firm expands residential conveyancing team with quadruple appointment

mfg Solicitors—Claire Pope

mfg Solicitors—Claire Pope

Private client team welcomes senior associatein Worcester

NEWS
The controversial Mazur ruling, which caused widespread uncertainty about the role of non-solicitors in litigation work, has been overturned on appeal
Two landmark social media cases in the US could influence social media regulation in the UK, lawyers predict
Barristers have urged the government to set up Nightingale-style specialist courts, with jury trials, to prioritise rape, sexual assault and domestic abuse trials
Victims of violent crimes who suffer life-changing injuries receive less than half the financial support today than those in the 1990s, according to a senior personal injury lawyer
Rising numbers of cases, an increase in litigants in person and an overall lack of investment is piling pressure on the family court, the Law Society has warned
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