Standard monthly payments
Update on the standard monthly payment (SMP) engagement exercise.
The LAA published an SMP engagement exercise on 2 May and committed to providing a response in August. However, to allow for the further implementation of the Criminal Legal Aid Independent Review, as well as enabling the LAA to gain improved information from the Review of Civil Legal Aid, we are now deferring the final decision on the future of SMP until summer 2024.
Why is it happening now?
Allowing more time for this decision will also allow us to explore further options to improve cashflow to providers to assist with offsetting the impact of repaying held liabilities.
Further information
The LAA intend to make variable monthly payment (VMP) the default payment method in future contracts, whilst maintaining SMP as an option until such a point when the future of this payment mechanism has been determined.