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On 27 November 2009, the National Audit Office (NAO) published a report which emphasises that there are risks to achieving value for money in the way the Legal Services Commission administers and procures legal aid for criminal cases.
The report notes that in 2008/09, the Legal Services Commission (LSC) spent more than £1.1 billion on criminal legal aid – legal assistance for people suspected of or charged with a criminal offence.
The report contends that the LSC should do more to understand the market for criminal legal aid in order to make the most of its ability to control price and quality. In particular, while the LSC holds good information locally about its suppliers, it does not bring this information together centrally. The NAO concludes that better use of this information would help the LSC establish whether it is paying a fair price for criminal legal aid and permit it to anticipate more reliably the impact of any changes it makes.
The LSC is undergoing a major transformation to reduce administrative costs and to improve effectiveness. The report notes that, while the LSC has implemented some significant market reforms in the last few years, it has not always piloted them or evaluated their impact, nor has it confirmed the financial savings generated.
The NAO finds that the LSC does not always make accurate payments to solicitors for criminal legal aid. In October 2009, the NAO qualified the LSC’s accounts for the legal aid fund for 2008/09 because it had overpaid solicitors on criminal and civil legal aid cases by an estimated £25 million.
Similarly, a survey of solicitors reveals tensions in the relationship between the profession and the LSC. Of those who responded to the survey, 36% of solicitors perceived the LSC as ‘unhelpful’ while 29% believed the LSC did not fully understand the legal system.
The procurement of criminal legal aid in England and Wales by the Legal Services Commission