Djanogly promises fixed fees shake-up

The government is preparing to unveil plans to cut the fixed fees paid to lawyers for low value road traffic accident cases, the justice minister has told MPs.

Jonathan Djanogly revealed that the Ministry of Justice is to introduce a consultation paper on fixed fees, which solicitors receive for cases under the Ministry of Justice’s pre-action protocol, during yesterday’s Parliamentary debate on the Legal Aid, Sentencing and Punishment of Offenders Bill.

He was responding to an amendment to the bill tabled by ex-justice secretary Jack Straw to cut the level of fixed fees paid to lawyers, which commonly works out at £1,200 per case.

Djanogly said: “The department is now reviewing the situation, but to achieve this outcome does not require primary legislation. Instead, a reduction can be implemented through changes to the Civil Procedure Rules. I can give the commitment that we are looking at this. Indeed, my officials plan to consult on appropriate changes to the level of recoverable costs.”

He added: “I do not intend to go to all the trouble of stopping referral fees being paid to claims management companies, only to see those same fees staying with the lawyers rather than going back to consumers in lower insurance premiums or prices in the shops.”