What Effect Will Proposed Legal Aid Changes Have on the UK?
Britons who want to make a compensation claim or take somebody to court are currently able to rely on a government funding scheme called Legal Aid.
However, the programme is currently at the heart of a big debate, as the government has decided it wants to make significant changes to the way Legal Aid works.
How Does Legal Aid Work?
The reason why the government has decided to change Legal Aid is to reduce the escalating amounts of money paid out by organisations like the NHS to solicitors and insurers when somebody makes a successful claim. In addition, it believes there is a dangerous ‘compensation’ culture in the UK, where people are being encouraged to claim compensation even when they may not deserve it.
People who want to take legal action but have disposable assets worth less than 8,000 are currently able to get financial help from the state.
However, the government is planning on changing the system so only those with 1,000 of disposable assets or less are eligible for help. What’s more, there are a number of areas of the law that you will no longer be able to get funding for, including:
* Medical negligence
* Some family law cases
* Some employment law cases
* Some debt and housing cases
Furthermore, the new rules will change the way the no win, no fee system currently works.
Under the proposed rules, solicitors will be able to charge a fee worth up to 25% of the compensation recovered when successful. Currently, this success fee is paid by the losing defendant.
Criticism from Law Firms & Consumer Interest Groups
Since the proposals were announced in 2010, many law firms and organisations like Citizens Advice have regularly criticised the government for the plans, believing them to be unnecessary and controversial.
Critics believe the new law could have the following effects:
* It could be that the cost of making a successful claim, taking into account legal fees, could end up being more than the sum of money ultimately recovered in compensation
* This may mean could lead to victims of negligence actually being charged for seeking compensation, rather than rewarded
* Only wealthy people will be able to afford to go to court
* Poor and vulnerable people will now find it extremely difficult to get access to legal advice
* Lack of access to funding could force people further into debt, rather than help them out of debt