Firms face civil legal aid retendering for 2004

Civil legal aid firms will have to enter into a bidding battle for 2004 contracts which will include six-month termination clauses, it emerged this week, sparking fears that the government may channel a chunk of their funding into the overspend on crime.

The move follows the joint Lord Chancellor's Department/Treasury decision to review the future of legal aid (see [2003] Gazette, 25 April, 4), which may result in the piloting of new forms of civil contract.

A consultation paper is due very shortly.

It also reflects last year's review of regional prioritisation and bid rules that new firms should be able to enter the contracting regime.

All firms will have to bid by 1 October this year for contracts to be awarded from April 2004.

The contracts will be for three years, but will include a break clause, allowing termination on six months' notice if the review recommends major changes to contracting.

Law Society chief executive Janet Paraskeva said: 'The Society is concerned about the uncertainty faced by firms currently delivering legal aid and we are disappointed that it will not be possible to award contracts in April 2004 for the full three years.

'One of our greatest concerns is that money may be taken from civil legal aid provision to meet the overspend on criminal work.

This would leave many of the most vulnerable people in society without the legal advice they so desperately need.'

Legal Aid Practitioners Group director Richard Miller said: '[The bidding] will provide an opportunity to those firms who have tried but failed to get a contract over the past three years to come into the system, but represents a risk to those firms where there is competition for contracts and matter starts.'

An LCD spokeswoman said it would be inconsistent to renew contracts for three years without the possibility of change in light of the upcoming review.

Paula Rohan