Three-quarters of legal aid firms have turned clients away in the past 12 months, with the problem looking set to escalate as the same number continue to turn their backs on publicly funded work over the next five years, the Gazette's third annual legal aid survey has revealed.

The survey of almost 300 firms has put more pressure on the Legal Services Commission (LSC) in the same week it revealed that it is to take control over pay from the government, and duty solicitors in Berkshire went on strike (see [2004] Gazette, 29 January, page 4).

The study - supported by the Legal Aid Practitioners Group (LAPG) and Criminal Law Solicitors Association (CLSA) - showed that 74% of firms in England and Wales have told clients to go elsewhere, rising to 86% for firms reporting to the LSC's London regional office.

Nottingham, Birmingham, Brighton and Chester were also hot spots.

Almost half - 47% - put this down to not having a relevant contract, with the same number lacking the physical capacity.

Others said they were being selective about accepting cases (42%), had run out of matter starts (36%), or were unable to see clients in time (24%).

The results showed that 91% of practitioners are now fed up with the system, with 88% more pessimistic than this time last year.

The main issue for most firms was low pay, followed by bureaucracy and lack of certainty about the future.

The survey, which was also backed by free e-mail criminal law information service Crimeline and the Black Solicitors Network, found that 20% dropped contract areas in the last year.

Of these, 23% ditched crime, followed by family (19%), welfare benefits (17%), employment and consumer and general contract (15%).

A further 17% said they were prepared to drop at least one area in 2004 - including one-third of immigration firms.

This was followed by crime (15%), family (14%) and housing (13%).

The results also highlighted concerns about the matter starts system; 56% of civil firms had experienced a shortage, with 36% saying they had requested more but been turned down.

Recruitment was another headache for 60% of firms.

LAPG director Richard Miller said the results are a 'stark warning' about the future.

'With hundreds of firms dropping out of the system every year, it is clear that those remaining within it are not able to take the strain, with the result that many clients are struggling to find the advice they need,' he said.

CLSA director Rodney Warren said there had been an 'audible sigh of sadness' from the profession.

'We have had a year of uncertainty in criminal legal aid, combined with a matter starts system in civil that is hardly providing desirable results for the public.

These results suggest that, year on year, more people [are] unable to get access to justice.'

Law Society chief executive Janet Paraskeva said: 'The Law Society has been urging the government to examine ways of reforming the legal aid system to ensure it meets the needs of the poorest people in society.

It is very worrying that more than half the civil legal aid firms report a shortage of matter starts.

The effect is that people are not getting legal advice on issues affecting their lives.'

An LSC spokesman said 90% of firms had bid to renew their contracts, with new applications more than compensating for the shortfall.

But he admitted: 'Despite the encouraging demand for our new contracts, we are concerned about pockets of unmet need in certain geographical areas and fields of law.

Recently, we addressed this by allocating an extra 20,000 matter starts to providers for use by April.

We will continue to deal with this matter as part of the current bid round.'

And in a separate statement to the Gazette, LSC civil remuneration head Karl Demian said it will soon take control over pay from the Department for Constitutional Affairs (DCA).

'Remuneration rates will be considered in light of the DCA's current review of demand, supply and purchasing,' he added.

A date for the transfer is yet to be agreed.

See [2004] Gazette, 29 January, page 14

By Paula Rohan