§ Mr. DjanoglyTo ask the Parliamentary Secretary, Department for Constitutional Affairs what plans there are to charge interest on sums owed to the Legal Services Commission. [185032]
§ Mr. LammyThe Legal Services Commission already attaches interest to the majority of debts attributable to it. Cases relating to the statutory charge have since 1988 attached interest. The rate of interest is linked to the Bank of England base rate and currently stands at 5 per cent. simple interest. £50 million of the gross debt due to the Commission relates to interest.
Of other debts due to the Commission interest is not sought as they are normally payable immediately. Where it is necessary to pursue them through the issue of court proceedings interest at the standard debt rate (8 per cent.) is claimed.
§ Mr. DjanoglyTo ask the Parliamentary Secretary, Department for Constitutional Affairs if he will break down by type of debt the money owed to the Legal Services Commission. [185950]
§ Mr. LammyThe break down by type of debt of the money owed to the Legal Services in 2003–04 is as follows:
£ Amount Contribution due from funded clients 29,509 Costs to be recovered 25,431 Statutory charge 263,896 Damages 12,904 Amounts due from suppliers 31,718 Recovery of defence costs orders 1,722 Accrued income European social fund 82 Prepayments and other accrued income 404 Total 365,666