LSC comes to an agreement on Very High Cost Cases

LSC comes to an agreement on Very High Cost Cases
24 October 2008

CDS have reached an agreement with the profession to resolve the current difficulties over instructing counsel on Very High Cost Cases (VHCCs).

Its details were announced today by the Justice Secretary and Lord Chancellor, Jack Straw.

VHCC working group

There is significant progress towards a new scheme of graduated fees for VHCCs, following our joint working group with the Bar Council, the Law Society, Ministry of Justice and the Crown Prosecution Service. 

Concerted efforts are being made to develop an improved scheme by 1 July 2009 to replace the current VHCC scheme that expires on 13 July 2009.

The working group has met regularly since May and agreed minutes of its monthly meetings are published on the websites of the representative groups.

New rates for interim VHCC scheme

The LSC will increase the top rates for the current VHCC scheme to £152.50 an hour for both litigators and advocates at no additional cost to the taxpayer.

Following a CDS funding order consultation, these rates will apply to all litigators and advocates working on VHCCs.

In the current economic climate the LSC’s budget has to be both fixed and finite. Expenditure on both VHCC and graduated fees schemes is constantly reviewed and the grant of certificates for two advocates may be an area in which savings could be made. Senior judiciary believe that there are limited circumstances in which judges can properly grant two counsel and are holding discussions with colleagues about ways to reduce this.

A substantial reduction may be possible and savings could be used to fund the increases in the interim VHCC scheme. The effectiveness of this scheme will be closely monitored and further measures may be taken to secure the savings.

Arrangements for current Panel members

Current Panel members will be offered an amended contract or a new contract. It will entitle them to claim payments up to £152.50 per hour (Category 1, Level A/QC rate) in line with the payment table we’re publishing today.

Advocates who were offered contracts but who didn’t previously sign will be offered contracts to undertake work as part of the new arrangements.

Advocates are not compelled to sign the new contracts. They can continue to work as non-panel members.

Applicants who bid more than £145 will have their applications reviewed and, if eligible, will be offered contracts.

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