The Community Legal Service (CLS) has issued a clarification on payment in care proceedings where cases transfer to a new provider.
Where a client transfers to a new provider and the original provider plays no further part in the proceedings, the following applies:
- If the new provider's profit costs (calculated using hourly rates) are equal to or more than the standard fee, the provider will obtain the full standard fee.
- If the costs are less than the standard fee, the provider will get half the standard fee. In these instances, the actual cost could be less than the fee received.
- Any case can become 'exceptional' if the profit costs of the provider are more than twice the standard fee. In these instances, the provider will be paid at hourly rates.
- The standard fee only applies to attendances in the office and preparation work. It does not apply to advocacy.
- All advocacy work, including travel to court and attendance at advocates' meetings, is paid separately at hourly rates.
- Counsel fees and disbursements are also paid separately under the standard fee scheme.