New ASA reports examine the impact of fixed fees

Drawing on analysis of cases reported by NfP agencies and solicitors' firms to the LSC in 2005-2006, ASA's recently published Fixed fees, equality and diversity examines the impact of fixed fees on members of ethnic minority communities especially in London. It concludes that the impact is likely to be discriminatory.
 
The report's main findings are as follows:

• Average case costs in London in Housing, Debt, Benefits and Employment are much higher than in any other region and very much higher than the proposed fixed fees
• 70% of clients in London in these categories of law classify themselves as other than white British
• 50% of all clients in England and Wales who classify themselves as other than white British are in London

 
The report suggests that the introduction of fixed fees will force London suppliers in particular, to change the nature and extent of the work they take on and the way they carry out their work. These changes will have most impact on BME communities, are likely to be detrimental and are therefore likely to be discriminatory in their effect.
 
The LSC has claimed the report is "fundamentally flawed" on the basis that the analysis "included exceptional cases, which would not come under the fixed-fee scheme in calculations for average case costs."
 
However, the LSC figures show that only 5% of social welfare law cases will count as exceptional. The problem still remains for those cases and clients that cost more than the fixed fee but do not reach the exceptional threshold. ASA’s research shows that, in London, these will be mainly from ethnic minority communities.
 
The report draws on an earlier ASA paper. Case Lengths, Case Costs and Fixed Fees, contains an analysis of all cases reported by Not for Profit agencies and solicitors firms in 2005-06 in the main social welfare law categories of housing, welfare benefits, debt and employment. It shows that average case costs in these categories of law are clearly related to the types of cases taken on, the types of clients helped, the extent of work done and results achieved for clients and the region where the case was handled. The report compares the average case costs analysed with the fixed fees due to be implemented in October 2007. It shows that certain types of cases (such as benefit appeals, multiple debt cases, and claims for unfair dismissal and discrimination) cost substantially more than the fixed fees proposed, and are therefore most at risk as a result of the changes proposed, unless they fall within the exceptional cases provisions.
 
Fixed fees, equality and diversity
Case Lengths, Case Costs and Fixed Fees