The Modernising Justice White Paper sets out measures to allow legal aid to become available to more people.

These include replacing the current Legal Aid Board with a new Legal Services Commission.

It will oversee the Community Legal Service and the Criminal Defence Service, which will take over the funding of criminal defence lawyers.

Lord Irvine wants justice at an affordable price

Announcing the changes, Lord Irvine said: "There is a vast unmet legal need in Britain.

"Change is long overdue. Think of all those urban estates where people have no advice centre, no neighbourhood solicitor, nowhere to find help in disputes about housing, or benefits, or debt or immigration.

"Think of the ordinary people of middle England who have no real access to justice because they do not qualify for legal aid but dare not risk the costs of going to law to protect their rights. I know that fear of lawyers' bills rules out ordinary people protecting their rights."

The proposals aim to bring down the cost of legal aid, which currently stands at £1.5bn a year, ensuring that public money is targeted at deserving cases and spent efficiently and effectively.

Criminal legal aid cost the taxpayer £733m in 1997-98 - a rise of 44% since 1992-3.

Civil and family aid has risen 35% in the same period to £793m in 1997-98.

The Community Legal Service has the aim of setting up a system to ensure everyone can get prompt and reliable information.

The lord chancellor outlined a vision of ordinary people in five years time being able to access the best advice for them through the Internet, Citizen's Advice Bureaux, by telephone or through a solicitor's office.

Improving quality of services

The old means tests for representation will be replaced so judges will be able to order wealthy defendants to pay their costs if they are convicted.

Other changes include an expansion of conditional "no-win, no-fee" arrangements to let winning parties keep more of their damages.

Lord Irvine said: "We are improving the quality of services the public can get at prices the state can afford."

The lord chancellor also wants to open up new avenues to justice, including more mediation.

The white paper also sets out measures to abolish restrictive practices in the legal profession as well as reforms affecting the courts, ranging from magistrates to the process of appeal.

Lord Irvine said: "These reforms, added to changes to court procedures already announced which start in April, will transform the legal landscape for the people who matter, the people who use our legal services.