Justice secretary says Lady Hale warned against cuts because she 'misunderstood' proposals on legal aid and sentencing
A �20m fund is to be created to help law centres and advice services threatened by the government's plan to cut legal aid, the justice secretary has announced.
This U-turn on funding came as Ken Clarke fought to defend proposals in his legal aid and sentencing bill at the second reading, including proposals to cut �350m out of the justice ministry's annual �2.1bn legal aid budget.
Asked about criticism of his policy this week from Lady Hale, the supreme court justice, Clarke accused her of having "misunderstood the effect of our proposals", and suggested he would meet her.
In a speech to the Law Society on Monday night, Lady Hale warned that cuts to legal aid would have a "disproportionate effect upon the poorest and most vulnerable in society".
In the Commons, Clarke insisted he had a "high regard" for the only woman judge on the supreme court, but added: "I'm surprised by her response. I think ? that the honourable lady has misunderstood the effect of the proposals or misunderstood why we are doing it."
On Tuesday, the Law Centres Federation claimed that 18 out of 52 centres in England and Wales were likely to close as a result of cuts to legal aid.
Clarke's promise of �20m this year to help "not-for-profit" neighbourhood advice and law centres appears to be a response to such fears. Many centres derived their income from other sources, Clarke insisted.
On clause 12 ? the government's plan to make entitlement to legal advice for those detained in police stations subject to a means test ? Clarke suggested it would be reviewed during the passage of the bill.
The justice secretary also said he may consider banning referral fees paid by lawyers in car accident and personal injury cases.
Responding for Labour, the shadow justice secretary, Sadiq Khan, claimed the government's proposals to cut legal aid would result in "the whole country becoming an advice desert".
Criticising the proposals before the �20m fund was announced, Citizens Advice said: "The proposals will result in significant falls in the estimated income of Citizens Advice bureaux in England and Wales, and will be potentially destabilising to many bureaux.
"The scope changes, applied to existing arrangements, would reduce legal aid income from �25.7m to �5.4m, with the consequent loss of specialist services. However, our modelling also suggests that not-for-profit contracts would cease to be financially viable at this remaining level of funding."
Welcoming the decision to consider banning referral fees, John Spencer, a solicitor who has campaigned against them, said: "I am thrilled that many legislators have finally woken up to the fact that referral fees are the rotten core of dysfunction in the personal injury market in this country.
"Referral fees introduce perverse commercial incentives into the market and clearly open the door to potential profiteering, not only from introducers of work such as insurers and claims management companies, but also for ancillary services related to each claim such as medical and mobility services."
Source: http://www.guardian.co.uk/law/2011/jun/29/ken-clarke-fund-law-advice-centres
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