Criminal law firms' finances are at risk of being hit by legal aid proposals that could see reductions on what they can recoup for using agency solicitors.

New plans from the Legal Services Commission (LSC) will introduce a requirement that where agency police station representatives undertake work, payment to firms should be treated as a disbursement and capped at 50% of the usual hourly rates. This would apply for all attendances except those undertaken for the firm where the accredited representative's supervising solicitor is based.


The consultation paper said: 'The commission believes that these proposals have the potential to improve service to detained clients, as well as improving value for money [for the taxpayer].'


The paper also calls for more stringent and early accreditation for representatives.


But Andrew Keogh, an associate at national criminal law firm Tuckers and a committee member of the Criminal Law Solicitors Association, said the changes could prove to be a headache for firms that commonly outsource to agencies and have to bear the constant overheads triggered by large volumes of work. 'It is mainly a London issue, as provincial firms do not tend to use many agencies,' he added.