Unite urges Ken Clarke to act as legal charity representing
10,000 asylum seekers goes into administration
16 June 2010
Justice Secretary, Ken Clarke was today (Wednesday, 16 June)
urged to intervene as a leading legal agency for asylum seekers
with 10,000 clients on its books went into administration.
Unite, the largest union in the country, deplored the fact that
Refugee and Migrant Justice (RMJ) went into administration as a
result of cash flow problems created by late payments of legal aid
by the Legal Services Commission (LSC).
Unite, which is recognised by RMJ which employs about 300 staff,
called on Ken Clarke to sort out the cash flow problems that will
hit legal aid ‘to some of the most vulnerable people in the UK who
have fled, in many cases, murderous tyrannies and unattractive
regimes’.
Unite said that both Ken Clarke and the LSC have said ‘no’ to
more money.
Rachael Maskell, National Officer, Community and Not for Profit
Sector, said: ‘Ken Clarke has a responsibility to iron out the cash
flow problems that has caused this well-respected professional
organisation with a fine reputation into administration.’
‘Unite is writing to the Justice Secretary for an urgent meeting
as legal representation of more than 10,000 vulnerable asylum
seekers and victims of trafficking, including nearly 900 separated
children, is now at risk.’
In her letter to the minister, Rachael Maskell said: ‘The
funding crisis across the Not for Profit sector is growing and we
need to find sustainable solutions to these problems. RMJ is seen
as an iconic organisation that has run into these difficulties due
to the services it provides to some of the most disadvantaged
people across our society.’
Unite has been consistent in calling for changes in the way
organisations are funded by the LSC and have warned of the growing
funding crisis in the civil legal aid sector. For the new
government not to step in, at this stage, will be sending a clear
message to some of the most disadvantaged people in our society and
across the globe as many seek support as they flee from
oppression.
RMJ’s cash crisis has been caused by a growing proportion of its
legal aid work now being paid upon completion – leaving it with a
lack of funds. The problem has not been caused by spending cuts,
but changes made to legal aid payments by the previous
government.
-ends-
NOTES TO NEWS EDITORS
For further information, please ring: Rachael Maskell, National
Officer, Community and Not for Profit Sector 0207 420 8979
or 07768 693933; Ciaran Naidoo (Communications Officer)
07768 931315; Shaun Noble, Communications Officer (Third
Sector) 020 7420 8951 or 07768 693
940
Background information on legal aid
payments
Under these changes, payment for most legal work is being made
once decisions are made on legal cases by the Home Office or
Tribunals, resulting in a delay of up to two years before costs are
reimbursed. The crisis comes as the new coalition government has
committed to speeding up the asylum system and reviewing the legal
aid system.
The Law Society, Immigration Law Practitioners Association and
the Law Centres Federation have all warned the Government that the
late payment system is putting intolerable strain on legal aid
providers generally.
In January 2010, the Legal Services Commission was heavily
criticised by Parliament’s Public Accounts Committee for failing to
have a grip on financial matters.
Under the fixed fee system, introduced under the last
government, a provider can charge the full fixed fee for an asylum
case of £459 even if they spend little time on the case. An
hour of advice, for example, will earn some 9 times more under the
fixed fee system than it would earn the old hourly rate system.
However, such work is unlikely to resolve a case and this means
that another representative will be paid the full fixed fee again
to do a proper job. Quality work will take many hours yet
receives the same payment of £459.
For further background, see Justice at Risk: quality and value for
money in asylum legal aid was undertaken by ICAR and City
University on behalf of RMJ, in partnership with the Immigration
Advisory Service and Asylum Aid, with funding from the Baring
Foundation. This shows that other quality providers are
experiencing financial strain.
To download the report click here:
http://refugee-migrant-justice.org.uk/downloads/Justice%20at%20Risk.pdf
Unite represents over 60,000 members in the Not for Profit
Sector.
