• Executive agency politicises legal aid, say critics
• Chief executive Carolyn Regan resigns immediately
Afua Hirsch, legal affairs correspondent
Wednesday 3 March 2010 18.24 GMT
Lord Bach
Lord Bach, the legal aid minister, said the aim was to 'establish a more rigorous approach'. Photograph: Graham Turner

The body in charge of the £2.1bn legal aid budget is to be abolished after 10 years , as part of radical changes to the way lower-income people access justice, ministers announced today.

The Legal Services Commission, which distributes civil and criminal legal aid, will be replaced by an executive agency in a move to regain control of government spending on legal aid.

"The legal aid budget is a significant amount designed to help people when they are their most vulnerable," said the justice secretary, Jack Straw. "It is now the right time to make some meaningful changes that will help us protect and
sustain the world-class legal aid service that we are so proud to deliver."

The legal aid minister, Lord Bach, said: "We think it is important to act before the election … to improve legal aid by strengthening governance and establishing a more rigorous approach."

The announcement prompted concerns that giving the government control of the legal aid service would violate human rights and jeopardise the independence of legal services.

"My concern is that this is a complete politicisation of legal aid administration. There is going to be no semblance of independence," said Steve Hynes, director of the Legal Action Group. "An executive agency pretty much does
what its ministers say it will. This is not just about justice but also the
appearance of justice."

Abolition is in response to a report published today by a senior civil servant, Sir Ian Magee. It was commissioned by ministers last year amid concerns the LSC was failing to deliver value for money.

The commission has been hit by a series of damning reports, including a report by the Commons public accounts committee in February. The National Audit Office last year raised serious questions about the handling of legal aid by the
commission. The government was forced to scrap flagship proposals for
"best-value tendering" to buy criminal legal aid services from law firms at competitive prices
after months of uncertainty about how firms would budget.

The government denied the changes reflected failings of the LSC, but confirmed that the chief executive, Carolyn Regan, had resigned with immediate effect.

"Carolyn Regan has announced her resignation to allow for new leadership during a time of change for the organisation," said Bach. "She has seen the LSC through some very difficult reforms and we thank her for that."

The government said it expected support from opposition parties for primary legislation and denied the changes would politicise legal aid.

"I want to make it very clear that we consider it essential that there is a clear separation between ministers and funding decisions in individual cases," Bach said.PAIN.




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