Government policies are creating a ‘cottage industry’ of legal aid provision, with large firms being driven out of the market, solicitors warned this week as a major firm shed its bulk criminal legal aid practice.

Hickman & Rose, whose managing partner Jane Hickman is a Legal Services Commission (LSC) commissioner, this week completed the transfer of its Tottenham office to north London firm TV Edwards.

General criminal work, together with premises, partners and most of the staff have transferred to TV Edwards.

Hickman & Rose will continue to practise, with its Clerkenwell Green office doing civil work, business crime and miscarriage of justice cases. Hickman will remain an LSC commissioner.

Ben Rose, founding partner, said that after ‘nearly 20 years of providing a high-quality publicly funded criminal defence service we have taken the difficult and painful decision that we simply cannot afford to continue to do this type of work’.

Brian Craig, chairman of the Association of Major Criminal Law Firms, said: ‘Cuts in pay were supposed to be met with increased volume, but that hasn’t happened and it doesn’t make commercial sense for firms to carry on.

‘Large firms are struggling to make ends meet and the government’s policies are moving towards a cottage industry.’

Joy Merriam, chairwoman of the Criminal Lawyers Solicitors Association, said: ‘It’s a sad indictment of the current system.’

The LSC said it disagreed with Rose’s view on legal aid rates. ‘Other providers continue to build sustainable businesses based on publicly funded work,’ it said.