TARGETING-- The Lord Chancellor would have powers to make regulations about the type of case and advice service covered by legal aid, and about financial eligibility and contributions.

There are no plans to extend legal aid to provide representation before any more tribunals.-- The Lord Chancellor would allocate separate pre-determined budgets for criminal, family and civil legal aid, to the Legal Aid Board (LAB).-- Expenditure would be targeted on priority areas: acting on the Lord Chancellor's directions the LAB would devise and apply a formula to allocate budgets for different categories of case; regional budgets would be refined to reflect local need.CONTRACTING-- Most legal aid services would be provided by contracts between the LAB and providers in the private or voluntary sectors.

But the LAB would be able to test and develop other avenues including grants and the use of directly employed staff.-- The LAB would seek the best price for services that meet its requirements for quality, geographic access and range of providers.-- All contracts would inc lude quality standards, building on the LAB's franchising initiative.

In addition, outcomes and other key features under contract would be monitored.-- Payment under contract would be made in a way that rewarded efficiency.

The main options would be either a single price covering all work that comes forward at a particular place and/or over a particular period, or a set price per case subject to a maximum volume.

Prices would include disbursements, including expert reports and the use of barristers or other advocates.

There would be special arrangements for very expensive cases or unexpectedly high demand.

Providers would be paid at regular intervals.CIVIL AND fAMILY LEGAL AIDThe main types of contract would cover: initial advice and assistance in particular areas of civil or family law with special arrangements where more substantial work was needed before or instead of issuing court proceedings; representation in particular types of civil or family proceedings; mediation in family matters; and one-off contracts for expensive cases.-- Initial advice and assistance would be available on the basis of a quick simple test applied by the provider.-- More substantial help or representation in litigation would require a more detailed test.

The Lord Chancellor would regulate setting out criteria to be weighed against the level of resources available for such cases.

The LAB would produce a national code containing directions and guidance on applying the test in practice.-- The LAB would be able to delegate the test to providers to enable them to grant legal aid out of their own contracts.

This would be plotted.-- Providers would be able to withdraw legal aid if the circumstances of the case changed, but not because a more deserving case had arisen.-- Where legal aid was refused or withdrawn the applicant would be able to ask the LAB to review the decision.

There would be a right of appeal.-- Initial advice and assistance would be subject to a simple means test undertaken by the provider.

People claiming income support and some other benefits would continue to receive free advice and assistance.

All other financially eligible applicants would pay a fixed contribution.-- People claiming some benefits would automatically be eligible for more substantial help in civil and family matters, including mediation and representation in litigation.

Others would be subject to a detailed means assessment by the LAB.-- As now, applicants whose disposable income and capital are between the lower and upper limits would need to make contributions related to their ability to pay.

In future, contributions from income would continue to be payable after the end of a case until the cost of the case had been met (subject to a ceiling for expensive cases and any time limit).-- There would also be a minimum contribution payable by all assisted persons, including those on social security benefits, who issue or defend most types of court proceedings.-- Any costs not recovered from the other party, or already met by way of contributions, would still give rise to a statutory charge on assets preserved or recovered in the proceedings.-- The LAB would also be able to recover costs from an assisted person who later sells his or her home.-- Whether to award inter partes costs would remain at the discretion of the court.

However, there would be rules as to how far costs orders against assisted persons can be enforced.-- The government intends to extend the scope of conditional fees to cover most types of civil case involving a financial claim, p ending outcome of the current trial period.CRIMINAL LEGAL AID-- New arrangements for contracting routine criminal cases would be tested, bringing together existing fragmented provision for advice, assistance and representation for suspects and defendants at the police station and the magistrates' court.-- Criminal legal aid will be available on the same basis as now - entitlement to representation being decided according to the interests of justice.-- Advice and assistance at a police station and on a person's first appearance at magistrates' court would remain free, with no means test.

Advice, assistance and representation before and during the early stages of a criminal case in the magistrates' court would remain free for those claiming certain social security benefits.

All other represented defendants would pay a fixed contribution on their second appearance at court on a particular matter.