STATUTORY CHARGE

If the client loses the case the fund will pay the solicitor’s bill, and the court will not order the client to pay his or her opponent’s costs. If on the other hand the client wins the case, he or she will have to pay back the funding from any money or property he or she has recovered in the proceedings. This amount is called the statutory charge.

The statutory charge the client will have to pay is therefore based on the following.

• The amount the LSC has spent on funding the service less any costs recovered.
• Less any contribution that has been made by the client towards the costs.

The purpose of the statutory charge is to recover costs paid by the state. Certain things however are exempt, and for divorce purposes these are:

• maintenance payments;
• payments up to £3,000 in matrimonial property or settlement.

The statutory charge may be waived if it would cause great hardship or distress, or if it would be unreasonably difficult to raise because of the nature of the property.

Postponing the charge

The charge does not have to be paid immediately. The LSC might for example agree to postpone the charge subject to it being secured against the property that is being recovered, such as a freehold or leasehold property. The fund will however charge interest until the property is recovered and the money is released. The rate of interest since 2002 has been five per cent.

Conditional fee agreements (no win, no fee) are not available in matrimonial cases as a matter of public policy.

Other organisations apart from the LSC offer free legal advice, for example:

• The Bar – Pro Bono unit;
• The National Association of Citizens Advice Bureaux;
• Law Centres.