Update for Liverpool Law Society meeting 12.10.22 by Beth Quinn, Key Account Manager – the Law Society
ACCESS TO JUSTICE
Criminal Legal Aid
Today (10 October) we released a press statement to highlight that the dispute over criminal legal aid funding is far from over, following barristers accepting a pay deal after another government U-turn.
Striking barristers have accepted a deal from government of an extra £30million on top of the 15% increase in criminal legal aid fees recommended in Lord Bellamy’s review. Solicitors’ fees are due to increase by just 9% despite the same review stating that solicitors are in a worse situation and that 15% was the bare minimum necessary to make their business viable.
Our President stated that this was an example of a government U-turn making a bad situation worse. As solicitors are the backbone of the crisis-hit criminal justice system they will see that the government has found a ‘magic money tree’ to stop the disruptive action of barristers – money that was not available to pay solicitors fairly. It is likely that our members will see that disruptive action achieves results that hard evidence and constructive engagement do not.
Our key message is that all parts of the criminal justice system need to be funded effectively. There is clear evidence of duty solicitor schemes already collapsing (for example: Skegness, Barnstaple) – and more will follow without immediate support.
Solicitors have kept the wheels of justice turning without a pay rise for the last 25 years. If the gap isn’t bridged by the time the government publishes their full response to the independent review next month, we have made it clear that we will advise our members that there is no viable future in criminal legal ais work.
>Further information can be found in our Press release
REGULATORY
SIF
On 7 October the SRA took the first steps towards the establishment of a scheme that should secure long-term consumer protection under their direct management, with the launch of a consultation on the future of the Solicitors Indemnity Fund (SIF) and Post Six Year Run Off Cover (PSYROC).
The Law Society are going to thoroughly examine the new proposals – but we are positive about the way in which the SRA’s position on PSYROC has evolved – and that they now agree that It’s necessary to protect the long-term interests of consumers.
The new scheme will see the SRA take over the existing SIF, rather than establish a brand-new scheme, and the proposals make provision for the recovery of claims costs from solicitors to the level of the excess in the preceding professional indemnity insurance policy. This mirrors the indemnity cover provided by SIF and the arrangement is intended to provide protection on terms equivalent to the indemnity insurance provided under the SRA’s minimum terms and conditions.
We plan on reviewing the new analysis that accompanies the consultation, but we note that the SRA is confident they will be able to deliver the same protections as SIF, at a lower cost. Bringing the fund in-house will also allow them to monitor claims data which could enable them to better identify and regulate long-term risks, to the benefit of solicitors and consumers alike.
It is also not anticipated that the profession would have to pay a contribution levy to the fund at this time.
We are optimistic that by continuing to work cooperatively with the SRA we will achieve a positive outcome that will protect both consumers and our members, and value the opportunity to assist the regulator in establishing a new arrangement to secure the future of this vital protection on a sustainable basis.