I am informed by the Legal Aid Board that under the Civil Legal Aid Act, 1995 and subsequent regulations, applicants for legal services are required to satisfy a test of financial eligibility. The present eligibility limit is £7,350 per annum disposable income. Disposable income is defined as the income that remains after certain statutory allowances have been granted.
If it is necessary to go to court, an applicant's capital resources are taken into account. The maximum disposable capital which an applicant may have is £200,000. The value of the applicant's net capital resources e.g. house, land, money in the bank, car are assessed and a capital contribution may be payable.
On the general issue, I can say that the question of increasing the income and capital limits has recently been raised by the board and is at present under review. I should point out that the limits were changed on four past occasions viz. 1981, 1986, 1991, and 1995.
The maximum allowances for the purpose of calculating the disposable income of applicants for legal services are as follows:–
Present Allowances against Income