By Anita Rice


Almost 20% of community law centres are facing closure, with another 49% in serious debt, research seen exclusively by the Gazette revealed this week - as liquidators were called in to Gateshead Law Centre.



The Law Centres Federation (LCF) claims the centres are facing financial difficulties because of the government's fixed-fees regime.



The LCF quizzed 54 centres across England and Wales between 22 February and 6 March this year about the impact of fixed fees for civil legal aid work. Of 41 respondents, eight said they are at a 'high risk of closure' and 20 were in debt at levels beyond the government-set 'buffer zone'.



Fourteen centres are returning money to the Legal Services Commission (LSC) in an attempt to avoid sinking further into the red over the next two years, during which time the government will further reduce the amount of debt considered to be within the buffer zone.



Just one centre said it was 'doing well' under the new system. The findings came as Gateshead Law Centre was forced to close its doors after liquidators Tait Walkers Chartered Accountants were brought in last Friday.



LCF chairman John Fitzpatrick said: 'It is desperate for some of our members... fixed fees and competitive tendering will destroy the contribution law centres have made for over 30 years.'



Fitzpatrick said community law centres take on long-term, complex work that is often 'at the cutting edge of law for vulnerable clients'.



The LCF was due to meet legal aid minister Lord Hunt as the Gazette went to press to discuss alternative funding arrangements and an extension of the time period for centres to comply with the fixed-fees regime. The initial transition period to implement the new funding contract expires in April this year.



Carlisle Law Centre said it had forgone one month's income this financial year to remain within its buffer zone. Manager Paul Im Thurn said community law centres like his would be forced to take on more simple cases and fewer complex ones to make ends meet.



An LSC spokesman said he had seen no evidence that law centres take on more complex work than other providers. He said fixed fees were an important part of achieving value for money.