Reduced yearly expenditure in the Legal Aid Service results in a diminished budget allocation.
Reduction in Legal Aid Budget Announced for 2025
The Federal Council has announced a significant reduction in the Legal Aid budget for the year 2025 as part of its 'relief package 27'. This move is aimed at stabilising federal finances and curbing looming deficits from 2027 onward.
In Guernsey, the Legal Aid Service is fully staffed and managing a debtors' balance of over half a million pounds. The total expenditure for the service in 2024 was £2.279m. The report notes that criminal matters accounted for 31.2% of the overall cost of legal cases, amounting to £587,000, while civil matters accounted for 68.8%, totalling £1.297m.
The report also mentions a notable change, the removal of full legal aid funding for divorce proceedings from the Civil Legal Aid Scheme, which came into effect on 19 July 2024.
The Legal Aid Service in Guernsey underspent its £2.95million budget by £680,000 in 2024. This underspend was a decrease from the £643,000 underspend recorded in 2022. The service processed 284 civil and 145 criminal applications in 2024, a decrease in civil applications from 323 in 2023, but an increase in criminal applications from 133 in the same year.
The report notes several key changes, including alterations to Governance. A new Deputy Legal Aid Commissioner, Advocate Jason Hill, has been appointed. The hourly rate for Advocates undertaking legal aid work was increased to £174.50 in February 2024, following a recommendation from a prior independent review. This rate increase also applied to Non-Admitted Lawyers and Paralegals.
The net value of legal aid debtors shows a significant difference across the Bailiwick. Guernsey has £208k in civil debt and £307k in criminal debt, while Alderney has £3k in civil debt and £2k in criminal debt, and Sark has £49k in civil debt and £1k in criminal debt.
The long-serving Legal Aid Administrator, Lucy Haywood, is expected to depart. The 2025 budget for the Legal Aid Service in Guernsey has been reduced to £2m, representing a 32.2% decrease in funding. The report still makes note of the civil expenditure for both Alderney and Sark being minimal.
The overall reduction in the 2025 budget is a significant step towards addressing the financial challenges faced by the federal government. The report also highlights the need for continued monitoring and adjustments to ensure the sustainability of the Legal Aid Service across the Bailiwick.
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