Which report Highlights a drop in
LSC Annual Report 2012 - 2013 highlights decrease in ‘acts of assistance’ but increase in administrative costs
The annual report for the LSC’s final year of operation was released last week. It is the first time in five years that the accounts have not been qualified by the National Audit Office. Matthew Coates, Chief Executive of the LAA (the successor body of the LSC) commented:
“I’m extremely pleased the National Audit Office (NAO) has removed the qualification of the LSC’s accounts. This follows a sustained amount of hard work by LSC staff and ongoing close engagement with providers of legal aid. I welcome the NAO’s comments that the Legal Aid Agency – the successor body for the LSC (following its abolition on 31 March 2013) is starting with an improved assurance framework.The NAO said that we now have a more robust supplier management, risk-based assurance activity and more routine recovery of irregular payments."
Turning to the figures themselves, the accounts show that there were 2.3 million ‘acts of assistance’ in 2012/13 as compared to 2.5 million in 2011/12. The total spend dropped from £2.1 billion to £1.9 billion.
2012/13 saw solicitors face the full impact of the hourly rates and fixed fee reductions introduced in October 2011 and February 2012 in addition to gearing up for the introduction of LASPO; it therefore won’t make pleasant reading to see that the LSC’s administrative costs this year rose from £82.1 million to £111.2 million.
One statistic that will be met with surprise by many providers is that civil bills were paid in accordance with the 30 day target in 98% of cases.
This time next year we will have the LAA’s first annual report, at the end of what will have been an extremely challenging year.
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