Legal aid quango axed and chief executive quits amid concern about financial controls

By Christopher Hope, Whitehall Editor Published: 7:19PM GMT 03 March 2010

The Government is additionally receiving approach carry out of the �2.1billion authorised assist bill from the Legal Services Commission, that distributes polite and rapist authorised aid, in a bid to cut the volume of income handed out to solicitors.

Carolyn Regan, the Commissions �214,000-a-year arch executive, give up unexpected yesterday after 3 and a half years in charge.

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Lord Bach, the authorised assist minister, said: "Carolyn Regan has voiced her abdication to concede for new care during a time of shift for the organisation. She has seen the LSC by a small really formidable reforms and we appreciate her for that."

Miss Regan will be transposed by a comparison polite menial from the Ministry of Justice. Carolyn Downs, who is the departments emissary Permanent Secretary, will take over until a deputy is found.

The Commission, right away an arms length non-departmental open body, will right away turn an comparison manager group of the Ministry of Justice, giving ministers close carry out over the authorised assist budget.

The shift of standing was endorsed by a apart examination in to authorised assist that reported yesterday.

The study, by comparison polite menial Sir Ian Magee, found a "substantial level" of regard about the Commission and identified an "urgent need for action".

Immediate stairs were indispensable to urge monetary government and burden inside of the commission, the inform said.

It said: "The turn and extent of regard is right away estimable and there is an obligatory need for action, quite in apply oneself of monetary controls on output of poignant sums of open money."

Legal assist has turn a aim for assets as �1 billion is cut from the departments bill over the subsequent 3 years.

Jack Straw, the Justice Secretary, yesterday described the complement as "one of the majority inexhaustible authorised assist schemes in the world". He added: "In the stream climate, it is even some-more critical that this open income is managed well and effectively."

Nicholas Green QC, the authority of the Bar, welcomed the Governments preference to take approach carry out of the authorised assist budget.

"As Sir Ian recognises, there has been a miss of distinctness about who is job the shots over policy. He identifies a series of critical issues that we will need to cruise further.

"At a time of huge vigour on open expenditure, it is necessary that the LSC focuses on in outcome smoothness of authorised assist that demonstrates worth for income to the taxpayer but additionally at the same time ensures entrance to probity for those who need it most."

Last month MPs on the Public Accounts Committee found that the Commission had small thought on either it was removing worth for money, nor either it was environment fees at an "appropriate level".

Separately Mr Straw additionally changed to cut the success fees that lawyers handling on no-win, no-fee redeeming price agreements - CFAs - in insult cases can assign from 100 per cent to only 10 per cent.

The move, introduced in a Statutory Order laid in Parliament, will come in to outcome from April. It follows a conference on determining costs in defame record launched by the Justice Ministry in January.