The costs levied to survivors by the Scottish Government’s new programme to recompense those who endured abuse while in care have been criticised. The scheme allows individuals to apply for one-time payouts ranging from £10,000 to £100,000, with the state paying between £450 and £2,000 in legal expenses directly to attorneys. However, some prominent law firms, such as Scotland’s largest personal injury lawyer Digby Brown, are charging clients up to 10% of their compensation amount, which can be as much as £10,000 in some instances.
This has been harshly criticised by abuse organisations, survivors, and several attorneys. Helen Holland of the nonprofit organisation INCAS for survivors of institutional abuse stated, “A lawyer representing a survivor should bill Redress Scotland for their legal fees.” They should not charge a percentage to survivors.” Jamie Greene, a Conservative MSP, stated that he had warned that law companies would exploit the “loophole.”
The programme was introduced in December 2021 and covers physical, sexual, and mental abuse and neglect suffered by children and adolescents under the age of 18 prior to December 2004. It is available to children in children’s homes and foster care. John Swinney, Deputy First Minister, stated that more than £11 million was paid out in the first year of the compensation scheme and 277 people were paid in 2022 out of 1,960 applications.
Joanne Peacher, who was raped by a priest at the Nazareth House children’s home in Glasgow when she was eight years old, obtained compensation. She is dissatisfied that her attorneys are demanding 10% of her reimbursement, stating, “I was the one who was wounded, not them.” I believe they should be compensated, but not 10%. It’s excessive.” Andrew, her husband, adding, “The charge is ridiculous.” Clearly, the government programme was put in place for a reason: to compensate attorneys at a reasonable rate for their labour. To remove it from the surviving is insulting. It is improper and immoral.”
Simon Collins, a lawyer of Collins & Co who represents abuse survivors, stated that businesses should not charge a percentage of survivors’ settlements. This is not a windfall for survivors, but compensation for horrific childhood trauma.”
According to its most recent financial statements, Digby Brown earned £18 million in profit in 2022, and its highest-paid attorney earned more than £2 million in the same year. A spokeswoman for the company stated that clients were informed of the agreed-upon fees and that they reflected the worth of the required investigation work.
The Law Society of Scotland stated that law firms were allowed to accept payment from either their clients or the government. A spokesman stated, “We are presently trying to provide appropriate solicitors with training from Redress Scotland so they can better understand how the scheme operates, including the fees.” Scotland’s Redress Plan has been created to allow applications to be submitted without the requirement for a lawyer, according to the Scottish government. We do not expect applicants to contribute to legal fees, and this should be made clear from the outset with their attorney.”
The creation of the redress scheme was intended to provide compensation to anyone who suffered abuse while under state care, with the state covering legal fees. Nevertheless, a BBC investigation has discovered that some renowned legal firms are exploiting a loophole to charge clients up to 10% of their compensation award for their services – a practise frequently criticised as excessive and immoral by abuse charities and some solicitors.
8-year-old Joanne Peacher, who was raped by a priest, won an undisclosed settlement from Redress Scotland in January. Nevertheless, she is dissatisfied that her attorneys are requesting 10% of her compensation. Andrew, her husband, stated, “The charge seems ridiculous.” Clearly, the government programme was put in place for a reason: to compensate attorneys at a reasonable rate for their labour. To remove it from the surviving is insulting. It is improper and immoral.” Collins & Co’s Simon Collins stated, “Solicitors should be compensated, but firms should not charge a percentage of the survivors’ payouts.”
Jamie Greene, a member of the Scottish Parliament for the Conservative Party, stated that his amendment to close the loophole was defeated when the law was passed, and he added, “To learn that lawyers have taken such a large portion of the compensation paid out to survivors is galling but not surprising.”
