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Legal Services Commission: Interest Charges

Volume 505: debated on Tuesday 2 February 2010

To ask the Secretary of State for Justice on how many occasions the interest charged on Legal Services Commission charges has been reviewed to reflect the economic situation in the last five years. (314392)

The statutory charge interest rate, like many private loan interest rates, is not linked to the Bank of England rate. The interest rate has been reviewed twice in the past five years. It was set at 8 per cent. (simple interest) on 1 October 2005. On 8 June 2009 a decision was taken to leave the rate unchanged. That decision was explained in a written ministerial statement made by my noble Friend the Parliamentary Under-Secretary of State (Lord Bach) on 8 June 2009, Official Report, House of Lords, column WS23.