A new report from the House of Commons Justice Committee has highlighted concerns that high street law firms, law centres, and newly qualified barristers are at risk of collapse following the pandemic.
The Committee has urged the Ministry of Justice to take action to prevent this collapse as the measures implemented to control the virus are lifted.
The committee considers that “there is a clear risk that those seeking legal advice and representation will find that it is not there when they need it” unless action is taken.
The report – Coronavirus (Covid-19): The impact on the legal professions in England and Wales details how the incomes of legal services providers have been dramatically cut due to fewer trials, or trials being suspended, and fewer cases coming to court caused by social distancing and other safety measures.
The impact has been most severe on the incomes of young solicitors and barristers, and on BAME lawyers – who all tend to be disproportionately represented in the publicly-funded Legal Aid sector – a sector that was already short of cash before Covid-19 arrived.
The report’s conclusions are stark: “Newly qualified barristers face particular pressure. Small high street firms are particularly at risk from the effects of Coronavirus restrictions. Law Centres and other not-for-profit legal advice providers are also at great risk.”
Elspeth Thomson, Co-chair of Resolution (amongst other witnesses), told the committee that it is important that the legal professions properly represent the society they serve, not least because they form a large part of the pool from which the Judiciary is drawn. The MOJ should set out what it will do to make sure that coronavirus restrictions on the justice system do not disproportionately affect the incomes of Black, Asian and minority ethnic or state-educated legal professionals, nor reduce their ability or desire to enter and work in the courts and tribunals system.
The report recommends:
- The MoJ consider the Bar Council’s proposals for using alternative evidence (other than tax returns) for bringing new barristers and returning practitioners within the remit of the Self-Employed Income Support Scheme.
- The MoJ consider the Law Society’s detailed proposals for payment and repayment of monthly payments (to solicitors firms and not-for-profit providers).
- The MoJ consider further grants for law centres and other not-for-profit legal services providers that are at risk of collapse.
- The MoJ consider how it can help those self-employed practitioners whose profits are just above the £50,000 threshold and how it can help legal services providers with their business rates.
- The MoJ and the Legal Aid Agency continue to be creative as to how legal aid is administered so that the legal professions are not further damaged by inflexible processes and contractual requirements on top of the problems arising directly from the coronavirus crisis.
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