New Zealand Law Society - Legal aid per provider average payment up slightly

Legal aid per provider average payment up slightly

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Information released by the Ministry of Justice shows that the average gross legal aid payment to listed providers in the year to 30 June 2016 was $111.371.72 - up on the average of $106,385.58 in the previous year.

However, the information also shows that the median gross payment was $73,528.42 and just under 38% of listed providers received payments of less than $50,000.

The amounts paid include fees claimed on behalf of other listed providers, plus disbursements for general office costs, travel costs, and special disbursements - which include fees for agents, expert witnesses, forensic tests, interpreters and special reports (such as medical and valuation reports).

In the year to 30 June 2016, total payments to listed providers were $134,759,778.10, to 1210 providers. This was up 3.5% on payments of $130,215,953.30 to 1224 listed providers in the year to 30 June 2015.

Gross Legal Aid Payments to Listed Providers, year to 30 June 2016

Value of payment Providers % Total Total payments % Total
$1,000,000 or more 4 0.3% $ 5,347,566.47 4.0%
$500,000 to $999,999 22 1.8% $ 15,288,739.96 11.3%
$200,000 to $499,999 158 13.1% $ 44,627,150.81 33.1%
$100,000 to $199,999 280 23.1% $ 38,551,807.99 28.6%
$50,000 to $99,999 292 24.1% $ 21,530,333.84 16.0%
$30,000 to $49,999 146 12.1% $ 5,720,954.00 4.2%
$10,000 to $29,999 156 12.9% $ 3,000,217.43 2.2%
$0 to $9,999 152 12.6% $ 693,007.60 0.5%
         
Total 1210 100.0% $ 134,759,778.10 100.0%

When compared to the previous year's payments, the number of providers who received total payments of less than $50,000 has declined, from 39.7% to 37.5%.

Gross Legal Aid Payments to Listed Providers, year to 30 June 2015

Value of payment Providers % Total Total payments % Total
$1,000,000 or more 6 0.5% $ 7,349,606.45 5.6%
$500,000 to $999,999 20 1.6% $ 14,088,259.30 10.8%
$200,000 to $499,999 135 11.0% $ 39,389,948.06 30.2%
$100,000 to $199,999 270 22.0% $ 37,358,320.20 28.7%
$50,000 to $99,999 307 25.1% $ 22,403,098.70 17.2%
$30,000 to $49,999 141 11.5% $ 5,553,687.00 4.3%
$10,000 to $29,999 174 14.2% $ 3,412,648.55 2.6%
$0 to $9,999 171 14.0% $ 660,385.01 0.5%
         
Total 1224 100.0% $130,215,953.30 100.0%

Since 2012, gross legal aid payments per provider have risen as the number of providers has declined:

Average Gross Legal Aid Payments to Listed Providers, year to 30 June

Year to 30 June Payments Providers Average Per Provider
2016 $ 134,759,778.10 1210 $ 111,371.72
2015 $ 130,215,953.30 1224 $ 106,385.58
2014 $ 124,580,223.80 1240 $ 100,467.92
2013 $ 130,258,884.90 1311 $ 99,358.42
2012 $ 148,306,784.40 1737 $ 85,380.99
2011 $ 154,090,071.30 1488 $ 103,555.16