Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what assessment he has made of the effectiveness of the complaints system through the Legal Ombudsman in cases where large numbers of consumers are affected by the collapse of a single legal firm.

The Office for Legal Complaints (OLC) is the independent body responsible for administering the Legal Ombudsman (LeO) scheme. The Legal Services Board (LSB), as the oversight regulator, has statutory duties to monitor the OLC.

The collapse of a law firm does not prevent complaints being investigated by the LeO or any remedies it might direct from being recovered. Although the LeO requires each affected consumer to raise a complaint about the law firm, it has procedures that can be put in place to manage situations where a large number of consumers may be affected. These include the ability to prioritise cases where it is appropriate to do so and to work with other bodies, such as the Solicitors Regulation Authority, to ensure consumers are supported and appropriately signposted.

While the OLC and LeO remain independent in their decision-making, the Ministry of Justice provides additional oversight and accountability to ensure they operate effectively and in the public interest. For monitoring purposes, the OLC reports regularly to both the LSB and the Ministry of Justice on performance, including information on demand, backlogs and timeliness.

The Department has not undertaken a specific assessment of LeO’s complaints system in cases involving the collapse of a single legal firm affecting large numbers of consumers. However, the Government recognises that the LeO has faced wider operational pressures in recent years and continues to monitor the performance and resilience of the complaints system by engaging the LSB and the OLC Board through existing oversight arrangements.