Miller: flaws in hourly system The Legal Services Commission (LSC) is inviting civil law legal aid solicitors' firms to sign up to a pilot testing the benefits of fixed fees, with the promise of an increase in case costs and less bureaucracy.

The scheme will apply to all work except immigration, mental health cases where the client is sectioned following criminal proceedings, and cases operating under the family advice and information networks pilot.


Launching its consultation last week, the LSC said it will be writing to all eligible firms asking whether they want to sign up to a voluntary scheme, which will begin on 20 September. A mandatory regime will be put in place following the consultation.


The LSC has pledged a 2.5% increase on average case costs for work within the scheme, and no costs compliance audits. It has also predicted greater certainty and room for suppliers to increase profitability by making efficiency savings.


Welcoming the consultation, Legal Aid Practitioners Group director Richard Miller said: 'We recognise that the hourly rate system has significant flaws, and believe that this proposal is the right direction, provided adequate safeguards are included.'


However, Mr Miller warned that the scheme would still need fine-tuning if it were to work properly, particularly on the issues of including disbursements within the fixed fee, applying the scheme to mental health cases, and enabling firms to claim an increase on the fixed fee where appropriate.


Meanwhile, the LSC officially launched its preferred supplier pilot in London last week. The pilot will see the 25 participating firms get a range of rewards and incentives, including training grants, enhanced payments on account, and devolved powers to self-authorise matter starts. Speakers at the launch included Stephen Hewitt, managing partner of participating firm Fisher Meredith. Mr Hewitt admitted that he was 'not first in line to be a cheerleader for LSC initiatives', but he was hopeful that the pilot would build trust and communication with the commission. 'The LSC must garner the confidence of the profession,' he urged.


LSC chief executive Clare Dodgson said the commission would be carefully seeking the views of participants before deciding how the final regime will work. 'We are going to have to walk before we run,' she added.