HC Deb 21 July 2004 vol 424 c376W
Mr. Djanogly

To 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. Lammy

The 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. Djanogly

To 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. Lammy

The 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