Who will be affected?
Civil legal aid will be the heaviest hit with the majority of criminal cases being left largely untouched.
As a result, ministers have proposed the largest shake-up of the system in its 50 year history.
Under the plans unveiled last year people fighting a wide range of legal battles ? from warring families and school disputes to clinical negligence and personal injury ? will be denied access to public funds.
But failed asylum seekers and prisoners will still be entitled to legal aid to take on the state.
The proposals are also a blow to lawyers, who will lose about �400 million a year in legal aid income.
Officials estimate that the cuts will eventually result in at least half a million fewer civil cases in the courts each year, with family matters the hardest hit.
Members of the public will instead be urged to take out private legal insurance or use "no win no fee" lawyers to fight their disputes in the future.
What are the criticisms of the plans?
Lord Judge, the Lord Chief Justice, on behalf of the judiciary today warns the moves will have "serious implications? for justice and damage the public?s access to it.
He fears there will be a huge rise in people have to fight cases in court themselves which, in turn, could prove even more costly and cause delays.
Children's Commissioner Dr Maggie Atkinson has warned proposals would be "potentially devastating for some of the most vulnerable children in our society".
Joanna Lumley, the actress, who famously won better rights for Gurkhas to settle in the UK, has called for a rethink arguing ?everyone has a right to be heard?.
The Law Society warns the move is "ill-conceived and unfair" and will leave half a million people a year with the prospect of fighting battles without legal representation.
The Bar Council, which represents barristers, said the measures will cost the country up to �350 million a year rather than save it because a rise in "DIY cases" where people represent themselves is likely to clog up the courts.
What does the Government say?
Justice Minister Jonathan Djanogly has said that, at more than �2 billion a year, the UK pays far more per head than most other countries for legal aid.
The current system "encourages lengthy, acrimonious and sometimes unnecessary court proceedings" and the proposals were an attempt to encourage people to take advantage of "the most appropriate sources of help, advice or routes to resolution", he said.
Kenneth Clarke, the Justice Secretary, told the Commons last year: "Legal aid will still routinely be available in civil and family cases where people's life or liberty is at stake, or where they are at risk of serious physical harm or immediate loss of their home."
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