A report by the Bar Council and Access to Justice Foundation into the value of free specialist legal advice has identified huge potential savings for the government
The report, ‘The value of justice for all’, published this week, suggests the government could save £4.5bn for every half a million people in receipt of specialist advice provided at an early stage of their legal problem.
Researchers used real-life case studies to model possible outcomes for individuals who receive free legal advice compared to those who do not. They calculated the costs to the Treasury in each case.
For example, a client living in social housing in Leeds was in rent arrears due to spending time in hospital, but agreed a debt repayment plan as a result of early legal advice, thereby paying off his creditors and avoiding potential eviction and a stay in temporary accommodation. After calculating estimated net adjusted value less cost of free legal advice, there was a saving for the Treasury of £20,244 in the short term and £21,494 in the long term.
Early intervention helped prevent legal issues spiralling, reduced pressure on the courts and tribunals and led to higher employability, improved health and reduced reliance on benefits, the report notes. It suggests: ‘Advising 100,000 clients could lead to 38,900 more people entering the workforce, generating approximately £81m in income tax and National Insurance contributions.’
Bar Council chair Sam Townend KC said: ‘Investing in free legal advice will help to resolve problems earlier and mean fewer cases need to reach court.
‘This will bear down on the record high court case backlog and will aid the wider justice system which is under huge strain and increasing pressure. The new government should adopt a fresh approach to legal aid and recognise this is an area where it can spend to save.’
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