Civil legal aid firms entering into the Legal Services Commission's (LSC) tailored fixed-fee system could be 'going in blindly' and risking future business prospects, practitioners have warned.

Changes to the LSC's plans announced this week mean that mental health work will not be included in the mandatory scheme. The financial threshold for 'exceptional cases' has also been extended so that payment can be claimed for cases which are 'totally out of profile' with other cases, if they have cost at least three times the tailored fixed fee or £2,500 - whichever is the lower. The LSC has also agreed to pay any increase in overall average disbursement costs, not just those attributable to clients with special needs.


Miller: impossible for firms

The LSC originally invited providers to join the scheme on a voluntary basis before 1 October 2004, with the promise that they would receive a 2.5% uplift on their fixed fee. It has now decided to extend the voluntary scheme to 28 February, but the new arrangements still become compulsory on 1 April.

They may be replaced, possibly next year, by a new fixed-fee scheme using national or regional averages.


Legal Aid Practitioners Group director Richard Miller welcomed the changes, but expressed concern about the lack of information about what is to happen from April 2006, making it impossible for firms to plan ahead. 'We are faced with more months, and possibly years, of planning blight. This has got to come to an end.'


Law Society chief executive Janet Paraskeva said: 'Tailored fixed fees may provide some firms with an opportunity to increase profitability through efficiency savings. But we remain concerned that this scheme might only operate for 12 months.'