Solicitors have this week accused the Legal Services Commission (LSC) of making 'scapegoats' of reputable immigration firms through its devolved powers policy - and have warned that plans for a new regime are likely to leave decent suppliers out in the cold unless they are based on peer review.

The LSC consultation on giving more autonomy to firms dealing with legally aided clients that closed this week proposed that they should be marked on their performance in the last six months based on factors such as the success rate of applications for costs extensions and immigration appeals, accreditation levels and 'any other outcome data'.

But the Legal Aid Practitioners Group criticised the LSC for its general removal of devolved powers in the first place, branding it 'demoralising and insulting to good practitioners'.

It conceded that the LSC had been put in an 'impossible position' in weeding out errant firms, but said it had adopted an 'ad hoc' interim approach to reinstating the powers to some firms prior to the consultation.

'We cannot condone the "playing of favourites" which has effectively resulted,' it said.

The group called for devolved powers to be based on peer review and an extension of the six-month assessment period.

Law Society chief executive Janet Paraskeva said the Society is working closely with the LSC to expose any firms abusing the system, but she agreed that the vast majority could be trusted to decide whether their clients are eligible for legal aid.

'The removal of this power has simply tarnished the reputation of all firms and created further bureaucracy,' she argued.

An LSC spokesman said it is considering responses to the consultation.

Meanwhile, the government has resisted its commitance to reining in expenditure and introduce a single tier of appeal in asylum cases.

Responding to a constitutional affairs select committee report, it also said it would keep an eye on the role of legal aid as well as the quality of initial decisions so they focus on 'genuine asylum cases'.

Paula Rohan