The deal was announced yesterday (2 April), effectively ending the long-running dispute between the profession and the Government over the contract, which had already seen
The agreement means that the LSC will comply with a Court of Appeal ruling handed down last November, limiting the power it has to make amendments to the contract, which lawyers advising on civil and family legal aid work must sign up to receive public money.
At one point the LSC threatened to scrap the contract in response to the ruling, which said the power to amend the contract breached European Union law.
The deal, announced in a joint statement by the Government, LSC and Law Society, has been claimed to offer solicitors greater stability.
The existing contracts will now run until 2010. However, contracts sent out after this date are likely to be for shorter periods in order for wider amendments to be made.
As part of the negotiations the LSC, Law Society and Ministry of Justice agreed to increase some fixed fees by 2% as well as holding off the introduction of best value tendering for mainstream civil legal aid until 2013.
The deal has been hailed as a significant result for solicitors after a period in which the profession has been engaged with a series of disputes with the Government over both civil and criminal legal aid.
LSC chief executive Carolyn Regan said: “The constructive nature of the recent negotiations between The Law Society, Ministry of Justice and LSC and the strong commitment from all to continue working collaboratively in the future is, in many ways, the most important outcome and signals a new way forward for all parties."
She added: “The Court of Appeal’s judgment will affect the contractual relationship between the LSC and providers in future. Contracts need to be clear about the conditions that will apply throughout the term of the contract and amendment clauses cannot be too wide. This means that contracts are likely to be for shorter periods in future and each time new contracts are offered the procurement process will be open to new bidders, as well as existing contract holders.”
Law Society chief executive Des Hudson (pictured) told Legal Week: “One aspect of the settlement is that there is going to be a road map produced for the future of civil legal aid provision for the next five years which the LSC and the Law Society are working closely together on.”
Talkback: a good deal for legal aid lawyers? Click here to have your say.
