STATE FUNDING

The Lord Chancellor’s Department’s consultation paper on Financial Conditions in Civil Cases proposes that the rule about current disposable capital will be changed so that applicants with over £3,000 of equity in their home (the present figure is £100,000) will be subject to contributions to the cost of their case. The proposal is intended ‘to provide a more level playing field between parties in a dispute where one has public funding and the other does not. It also helps deter people from bringing claims where they are not confident of their claim but are prepared to advance it because the State is bearing all the financial risks.’ Reforms are also proposed in respect of disposable income and contributions. The first £1,500 of an applicant’s yearly disposable income above the lower exempt limit will be subject to a contribution of a quarter, rising to a third of the disposable income between £1,501 and £3,000, and to a half where disposable income exceeds £3,000. Legal Help and Help at Court will be subject to a single contribution scheme under which applicants would pay £45, £150 or £300 within the same income bands. It is proposed that the same financial eligibility limits should apply to all levels of service. At present the limits are lower for legal representation than legal advice, which means that some people are opting for representation, when all they need is advice. Copies of the consultation paper are obtainable from Sean Langley, tel 020 7210 0601 or email: slangley@lcdhq.gsi.gov.uk