4/6/10: Changes to Legal Aid in Criminal Cases
We are all aware that pressure is on Government to cut the costs of public services. This cost cutting has been extended to encompass significant changes to the rules governing the provision of legal aid in criminal cases, with the result that some defendants in such cases can expect to contribute a far higher proportion of their legal costs in future.
The changes have been introduced in stages across England and Wales during the first half of 2010 and are due to arrive in London on 28th July 2010.
Previously, in the vast majority of cases, a defendant charged with a criminal offence and awaiting trial in the Magistrates’ Court or Crown Court would expect to obtain legal assistance by way of representation by a solicitor and/or a barrister without cost to himself. Now, a defendant will be required to make a monthly contribution to his defence costs for up to six months, of up to 90% of his monthly “disposable income” – known as the “income contribution” - where that “disposable income” exceeds £283. A defendant’s “disposable income” is calculated as the income of himself and his domestic partner after deduction of tax and National Insurance, mortgage payments or rent, council tax, certain other specified expenses and an allowance for general living expenses. Defendants in receipt of certain means-tested state benefits will be exempt. For other defendants, the new regime in legal aid is likely to be financially quite onerous.
If the defendant is subsequently acquitted, his contributions to his legal costs will be refunded with a small amount of interest. If, however, the defendant is convicted, the entire legal costs of his defence will be calculated and he will be required to meet those costs in full himself – the “capital contribution” - less the income contributions already made, if he has sufficient capital (above a threshold figure of £30,000) to do so; including, for example, the equity he and his domestic partner may have in the family home or in any other property. Following a lengthy Crown Court trial, the capital contribution could readily run to a six figure sum.
Please contact us if you consider that we can be of assistance to you in any issue arising with HMRC.
