The Civil Legal Aid (Statutory Charge) Regulations 2013

PART 2 E+W OPERATION OF THE STATUTORY CHARGE

Calculation of the statutory charge E+W

4.—(1) The amount of the statutory charge does not include, except where paragraph (2) or (3) applies, the cost to the Lord Chancellor of providing the following forms of civil legal services—

(a) legal help;

(b) help at court;

(c) family help (lower);

(d) family mediation; or

(e) help with family mediation.

(2) Where a legally aided party receives family help (higher) or legal representation, the amount of the statutory charge includes the cost to the Lord Chancellor of providing legal help, help at court, family help (lower) or help with family mediation, where made available, in connection with the same proceedings or dispute.

(3) Where the cost of providing family help (lower) exceeds the amount which would otherwise have qualified for the standard fee, the amount of the statutory charge includes—

(a) the cost of providing legal help and family help (lower) to the extent that those costs exceed that amount; and

(b) any disbursements.

(4) The amount of the statutory charge does not include any settlement fee paid in relation to family proceedings.

(5) In this regulation, “standard fee” and “settlement fee” mean the fees set out in regulations made under section 2(3) of the Act.

Exceptions to the statutory charge E+W

5.—(1) The statutory charge does not apply to the following property recovered or preserved by a legally aided party in relevant proceedings, or in any compromise or settlement of a relevant dispute,—

(a) any periodical payment of maintenance;

(b) any sum or sums ordered to be paid under—

(i) section 25B(4) (pensions) or 25C (pensions: lump sums) of the Matrimonial Causes Act 1973 M1 ;

(ii) section 5 of the Inheritance (Provision for Family and Dependants) Act 1975 M2 (interim orders);

(iii) Part 4 of the Family Law Act 1996 M3 (family homes and domestic violence); or

(iv) paragraph 25(2) or 26 of Schedule 5 to the Civil Partnership Act 2004 M4 (financial relief in the High Court or a County Court etc.);

(c) half of any redundancy payment within the meaning of Part 11 of the Employment Rights Act 1996 M5 (redundancy payments etc.); or

(d) any sum, payment or benefit which by virtue of any provision of, or made under, an Act of Parliament cannot be assigned or charged.

(2) The statutory charge does not apply to—

(a) a legally aided party's clothes or household furniture; or

(b) the implements of a legally aided party's trade,

except where the Lord Chancellor considers that there are exceptional circumstances, having regard in particular to the value or quantity of the items concerned.

(3) Where, by virtue of regulation 7, the statutory charge is in favour of a provider, it does not apply to a legally aided party's main or only dwelling.

(4) Paragraphs (2) and (3) do not apply where the legally aided party is a legal person.

Marginal Citations

M1 1973 c. 18; sections 25B and 25C were inserted by the Pensions Act 1995 (c. 26), section 166(1). Section 25B was amended by the Welfare Reform and Pensions Act 1999 (c. 30), Schedule 4, paragraph 1(5)(a) and (b), and section 25C was amended by the same Act, Schedule 4, paragraph 2(2) to (5).

M2 1975 c. 63.

M3 1996 c. 27.

M4 2004 c. 33.

M5 1996 c. 18.

Partial exceptions to the statutory charge E+W

6.—(1) The following amounts do not constitute a charge on any property recovered or preserved by the legally aided party in relevant proceedings or a relevant dispute—

(a) costs incurred by a provider as a result of fulfilling the provider's statutory obligations to a legally aided party with a disability within the meaning of the Equality Act 2010 M6 ;

(b) where a determination in relation to which a certificate is withdrawn (but not revoked) the cost of assessment proceedings, other than the cost of drawing up a bill for the purpose of those proceedings, under the—

(i) CPR, Part 47 (procedure for detailed assessment of costs and default provisions); or

(ii) Supreme Court Rules 2009, Part 7 M7 (fees and costs).

(2) The following amounts do not constitute a charge on any costs payable to a legally aided party under a legally aided party's costs order or costs agreement—

(a) any contribution owed by the legally aided party under regulations made under section 23(2)(b) of the Act (payment for services);

(b) legal aid only costs.

(3) In this regulation, “revoked” means that a determination has been withdrawn in circumstances in which the Director has exercised the power to revoke the determination under the Civil Legal Aid (Procedure) Regulations 2012.

Marginal Citations

M6 2010 c. 15.

M7 SI 2009/1603.

Statutory charge in favour of Lord Chancellor or provider E+W

7.—(1) The statutory charge is in favour of the Lord Chancellor except in the circumstances described in paragraph (2).

(2) The statutory charge is in favour of the provider where—

(a) regulation 4(3) applies; and

(b) no certificate has been issued in connection with the same proceedings or dispute.

Authority to waive the statutory charge E+W

8.  The Lord Chancellor may, where the statutory charge is in favour of the provider, grant the provider authority, whether in individual cases or generally, to waive all or part of the amount of the statutory charge where its enforcement would—

(a) cause grave hardship or distress to a legally aided party; or

(b) be unreasonably difficult because of the nature of the property.

Waiver of the statutory charge in cases of significant wider public interest E+W

9.—(1) The Lord Chancellor may, where the Lord Chancellor considers it equitable to do so, waive all or part of the amount of the statutory charge, if the following conditions are satisfied—

(a) the Director was satisfied, in determining that a legally aided party qualified for legal representation, that the proceedings had a significant wider public interest; and

(b) the Director in making the determination took into account that there were other claimants or potential claimants who might benefit from the proceedings.

(2) In this regulation, “significant wider public interest” has the same meaning as in the Civil Legal Aid (Merits Criteria) Regulations 2013.

Operation of the statutory charge where certain determinations are withdrawn E+W

10.—(1) Paragraph (2) applies where a determination in relation to which a certificate was issued is withdrawn.

(2) Where this paragraph applies, the statutory charge applies to property recovered or preserved by, or costs payable to, the legally aided party (or their personal representatives, trustee in bankruptcy or the Official Receiver) after the withdrawal of the determination in the proceedings or dispute in relation to which the determination was made.

Operation of the statutory charge on money in court E+W

11.—(1) Paragraph (2) applies where—

(a) the statutory charge is in favour of the Lord Chancellor; and

(b) money recovered by a legally aided party in relevant proceedings is ordered to be paid into or remain in court and invested for the benefit of that party.

(2) Where this paragraph applies—

(a) the statutory charge applies only to such amount of that money as in the opinion of the Lord Chancellor will be necessary to safeguard the Lord Chancellor's interests; and

(b) the Lord Chancellor must notify the court in writing of the amount of money to which the statutory charge applies.