Firms raised concerns about signing new contracts without clarity on ongoing fee consultations
Over 100 legal firms in the UK submitted bids for new criminal legal aid contracts but warned they may not sign them unless the government increases remuneration rates, The Law Society Gazette reported.
In a letter addressed to UK Justice Secretary Shabana Mahmood, the firms expressed concerns about committing to new contracts without knowing the outcome of ongoing government consultations on fees.
The firms’ bids, submitted in time for yesterday’s deadline, aim to secure places on the duty rota starting in October 2025. However, the Ministry of Justice has faced criticism for requiring firms to bid before publishing a crucial consultation response on police station and youth court fees. Additionally, the government has not issued a revised decision following a High Court ruling on fee structures.
In their letter, the firms cautioned that although many have tendered bids due to the "artificially swift deadline" imposed by the Ministry of Justice, this does not guarantee they will proceed to sign contracts. They emphasized that the decision to sign or maintain these contracts in the long-term hinges on whether the government addresses the financial challenges highlighted by both the profession and the High Court.
“There is a huge difference between submitting a tender… and actually seeking and ultimately signing a new contract in 2025,” the firms said. They urged the justice secretary to announce whether her department will accept the recommendations of the Criminal Legal Aid Advisory Board, which have not yet been made public.
Richard Atkinson, president of the Law Society and a criminal law specialist, supported the firms’ stance, underscoring the situation's urgency. Atkinson pointed to data showing that the number of criminal legal aid firms has decreased by a third since 2017, while the number of duty solicitors has declined by 26 percent.
“How can firms make a sound business decision to bid for a new contract, especially one lasting 10 years, without knowing whether these bare minimum criminal legal aid rate increases will ever happen?” Atkinson said.
With firms warning of the potential collapse of the system due to a lack of adequate remuneration, the Ministry of Justice is under increasing pressure to resolve the ongoing uncertainties.
