Thousands face legal aid bills

Thousands of people who've been given legal aid over the years are in for a shock.

The Legal Services Commission, which administers the aid, is writing to 85,000 people telling them to pay up.

The letters are going to people who were helped with their cases and who were awarded a share of property as a result.

A typical example might be a woman in a divorce case who ended up with half the family home.

Average bill

They are being told that they must pay the costs of their aid when they sell the property - if they are still living there no action is needed yet.

But in many cases the home will have been sold and they will have to find the money immediately.

The average bill is likely to be about £2,500.

This demand for money echoes the private system - if you engage a solicitor then once the case is heard the fees need to be paid.

The problem is that many of those getting the letters will have no idea that they actually owe any money.

Understandable

Solicitors should have explained the situation at the time.

Alison: People should have been told

And as many of the cases go back more than 20 years, it's understandable if people have forgotten all about them.

"We don't know exactly why people weren't told all those years ago," says Alison MacNair of the Legal Services Commission.

"I'm sure the legal aid administration at the time thought that the person's solicitor would have explained it to them, as they should, and that they didn't need to send reminders."

Low incomes

If your case took place after 1988 then the debt won't be static, either. Interest would have been applied each year.

The Legal Services Commission says that anyone who gets a letter and wants to know more should call 020 7757 1381, making sure they have their reference number.

The money - in total about £250m - will be put back into the pot to make more grants.

So who actually qualifies for legal aid? It's mainly people on low incomes but there are other criteria:

Financial means - People are means-tested. The levels vary depending on the case involved, but disposable income thresholds are around the £600-£700 per month mark. Your capital must be below £4,000. Your partner's income is also taken into account - unless your action is against them.

Legal merit - The case will be assessed for the likelihood of success and a cost benefit analysis carried out. This determines if pursuing it on legal aid is justified.

The whole system was revamped in 2000 following the introduction of the Access to Justice Act.

This removed the right to legal aid from some areas of the law - personal injury cases, boundary disputes and business cases.

Registered

These moved into the controversial area of conditional fees - no win, no fee.

If you feel you have a case which warrants help, the first port of call is a Legal Aid registered solicitor or adviser.

They can be found through your local Citizens Advice or through the Legal Services Commission advice website at

www.justask.org.uk.

Alternatively you can phone [phone].

The system has been considerably tightened in the last few years but more than one million people are helped by legal aid each year.