The Legal Aid Board says the cost of funding lawyers to work on immigration and asylum worker cases has jumped from £37m to £49m in the last year.

The BBC's legal affairs correspondent Joshua Rozenberg: "The legal aid bill for immigration work has gone up enormously"

The report says there has been no vast increase in the number of refugees which would explain the rise.

It says the £12m deficit can only be explained by unscrupulous solicitors doing work which is often unnecessary and bogus.

Crackdown on 'cowboys'

The Legal Aid Board is recommending a crackdown on "cowboy" law firms.

They want a system of franchising set up, with only firms who meet the necessary standard being approved to do immigration work.

The report, commissioned by the Lord Chancellor, Lord Irvine of Lairgs, says some firms have been aggressively touting for business at refugee reception centres in the UK and even at camps in the Balkans.

They have been accused of overcharging by more than 50%, charging for work not done, and giving bogus advice.

The Times says four immigration law firms have been taken over by the Office for the Supervision of Solicitors and another six are under investigation for suspected malpractice.

Fifteen firms have been ordered to reduce bills because of alleged over-charging, though some are appealing.