The Legal Aid Agency has recently announced an amendment to the Standard Civil Contract 2018 to increase the number of payments on account for profit costs that can be submitted within a 12-month period.
It was previously the case that providers could only submit a maximum of 2 claims within any 12-month period. This has now changed to a maximum of 4 claims within any 12-month period.
The changes came into force on 13th July 2020. The change does not affect claiming disbursements on account.
What is a payment on account?
Providers are able to claim a payment on account (POA) of profit costs incurred throughout the life of the legal aid certificate. Providers are paid 75% of the profit costs that have been incurred to date of the POA submission. Claiming a POA improves cash flow for providers rather than having to wait until a case concludes to claim all costs incurred.
The usual restriction is still applicable, a provider must wait 3 months from the grant of the certificate to claim the first POA.
Please do not hesitate to contact us for further details regarding the above. We are able to assist providers in strategizing POA’s and assist in claiming these from the Legal Aid Agency.