Ministry of Justice also continues housing exemption from fixed recoverable costs
The government yesterday announced increases in housing and immigration legal aid fees of 24% and 30% respectively.
Meanwhile, the Ministry of Justice (MoJ) has also extended the exemption of housing cases from fixed recoverable costs for another three years.
In its response to a consultation issued in January, the MoJ said that “the housing and immigration sectors are experiencing acute challenges that necessitate intervention”.
As a result, it is to increase all legal aid rates for housing and immigration up to a minimum hourly rate of £65.35/£69.30 (non-London/London) and uplifting fixed fees by a matching proportional uplift. Rates will go up by 10% where the new minimum rate would not represent at least a 10% uplift.
It will also harmonise some of the subsidiary fees such as travelling and waiting time, attendance at court or conference with counsel, routine letters out and telephone calls.
The fee for attendance at court or tribunal or conference with counsel will be increased from 50% to 75% of the relevant preparation and attendance rate.
The changes, which will be implemented “as soon as operationally possible”, will cost around £20m a year. They represent the first uplift since 1996.
The response said: “The government believes that the proposed increases to housing and immigration fees will support the sustainability of housing and immigration legal aid. The government intends to monitor the impact of the increased fee rates on service levels, the number of legal aid firms, and demand.
“The government believes that these changes constitute fair and appropriate compensation for housing and immigration legal aid providers, and will help to increase availability of legally aided services and bolster capacity in the housing and immigration sectors.”
Justice minister Sarah Sackman KC added: “This vital investment marks a turning point for civil legal aid by boosting funding to build capacity in the sector, helping to enable individuals, regardless of background or income, to uphold their legal rights.
“As part of our Plan for Change we are ensuring that our legal aid providers can deliver vital support where it’s needed most.”
Later this week a separate consultation on uplifting fees for criminal legal aid for solicitors by up to £92m will conclude.
Separately, the MoJ has decided to continue the exemption for housing claims from the extended fixed recoverable costs regime introduced on 1 October 2023.
Costs Lawyer Nick McDonnell, a director of Kain Knight, reported that the MoJ has told the Housing Law Practitioners Association: “We are aware the future of fixed recoverable costs (FRC) in housing cases has been of interest for many in the housing legal aid sector. We understand the importance of keeping you informed and are pleased to share the latest updates.
“The government will extend the exemption of housing cases from the FRC regime until October 2028, when we will review the exemption. This is due to the ongoing developments underway in the housing sector, including changes resulting from the Renters’ Rights Bill and Awaab’s Law.
“We will continue to monitor these developments and share further updates as more information becomes available.”
Awaab’s Law, which comes into effect on 27 October, requires social landlords to investigate and address issues like damp and mould within specific timeframes.
Mr McDonnell said the decision would be welcomed by claimant practitioners and argued that the nature of housing claims and the remedies often sought by claimants “are incompatible with a fixed recoverable costs structure”
He explained: “In housing conditions claims, the financial value of the claim can be low, but the claims themselves can be complex and of profound importance to the client, many of whom are highly vulnerable, especially when a claim may result in them having to leave their home.
“The claims are mostly non-monetary, and the remedy sought by a tenant from a landlord is usually for specific performance to complete repairs to a property.
“Where there are no, or very low, financial damages in addition, most claimants will be unable to contribute to their legal fees and if the legal representatives specialising in those areas are subjected to fixed recoverable costs, it is highly likely those legal representatives will be unable to conduct claims profitably for the fixed recoverable costs alone.
“As a consequence, those firms may have no choice but to exit the market, leaving some of the country’s most vulnerable claimants exposed without legal representation and housing associations escaping justice being done for their tenants. That would clearly be an affront to access to justice.”