Legal aid spending saves wider public funds, new study finds

Money spent on legal aid, whether civil or criminal, has a positive impact on other areas of public spending, according to a new study carried out for the Law Society of Scotland.

Independent research commissioned by the Society and published today, found that for every £1 spent on legal aid, the overall benefit gained by the person receiving legal aid and wider society was valued, in many cases, as substantially more than £1.

Consultancy company Rocket Science was tasked with carrying out an assessment of the social return on investment (SROI) of legal aid in criminal, housing and family law cases earlier this year.

In addition to identifying the benefits for individuals who directly receive legal aid, which include positive family relationships, better job prospects and better mental health, the research considered the impact on taxpayers and wider society, and found a positive financial impact for the NHS, local authorities and prisons.

Among the report's key conclusions are:

• In housing cases, such as evictions due to rent or mortgage arrears, spending £1 on legal aid can generate a beneficial return of approximately £11 for both recipient and wider society: 80% benefits the direct recipient due to fewer evictions and cases of homelessness, while 20% benefits public services including the NHS and local authorities with reduced demand for health and social services.
• For every £1 spent on legal aid in family cases, there is a beneficial return of approximately £5: 95% benefits the recipient in helping to ensure access to justice, with people not having to represent themselves in court; 5% benefits public services, including the justice system, with more cases resolved outwith the court.
• For every £1 spent on legal aid in criminal law cases, there is a beneficial return of approximately £5: 90% benefits the recipient, mainly through securing professional representation in legal proceedings; 10% benefits public services including the Scottish justice system, courts and prison service due to earlier resolution of cases.

The findings will be shared with the current independent review of legal aid commissioned by the Scottish Government.

Graham Matthews, President of the Law Society of Scotland, commented: "Legal aid can be life changing for those who need it – helping to prevent the trauma of people being evicted from their home or losing custody of their children or having to represent themselves in court, which in turn can have other long-term effects including relationship problems, stress and ill health.

"Our research shows that each and every one of us in Scotland benefits from legal aid, not just the people who receive it and for every £1 spent there is a bigger return in benefits. Investing in legal aid to resolve legal issues before they evolve into situations that are even more complex and costly to sort out, helps relieve the pressure and financial burden on our public services such as the NHS and local authorities."

Mr Matthews continued: "Yes there continues to be pressure in public spending and yes, there are difficult decisions to be made. There is, however, an overwhelming case to be made for the significant long-term benefits of having a properly resourced legal aid system which ensures access to justice for all, regardless of where they live or their financial situation.

"It is why we continue to be extremely concerned at the cuts in legal aid spending in Scotland. There has been another drop this year – with less spent now than 20 years ago."

He warned: "If cuts to legal aid spend continue, our concern is that increasing numbers of solicitors simply won’t be able to provide it in the future and people will lose access to professional legal advice in their local area. We will press for the Scottish Government to use these findings as the basis for further research into the wider benefits of investing in legal aid."

Graeme Brown, Director of Shelter Scotland, added: “This work highlights the value of access to independent, specialist legal advice. It’s not just homes that people keep. With the help of our law service people have improved mental health, better employment opportunities and families are able to stay together.

"It is difficult, if not impossible, to do housing casework on legal aid alone. We rely on a combination of legal aid and our grants from the Scottish Government and the Scottish Legal Aid Board.

"Without both these types of funding we wouldn’t be able to prevent homelessness and secure suitable accommodation for hundreds of people each year."

Technical and summary reports from the research can be found by clicking here.