Justice Minister Jonathan Djanogly’s refusal to implement a ban on referral fees in personal injury litigation will cause increased legal costs.
Law Society President Linda Lee said the decision will cost taxpayers more on top of already planned cuts to the justice system.
“Referral fees hinder access to justice, contribute to rising costs in the justice system and go against the interests of the consumer.
“We have always argued for a total ban on referral fees. Jack Straw believes they should be banned, Lord Justice Jackson in his recent report on costs believes they should be banned, and now even the insurance industry agrees they should be banned.
“The Government needs to wake up and take immediate action.”
For further information from the Law Society visit www.lawsociety.org.uk/mediacentre
