The legal services market study is currently investigating whether consumers have sufficient information about the quality of service and value for money they can expect when they hire a lawyer. This scoping study identifies the type of research and analysis necessary to answer key questions posed in the study's terms of reference.
Key findings
Background
Scoping
study - download full report [PDF 278 kb, 53 pages]
The scoping study's preliminary analysis of the legal services market has confirmed that consumers and suppliers may be disadvantaged by a lack of information about quality within the marketplace. The market may therefore not be functioning competitively.
We have drawn up a programme of further work with the goal of identifying as far as possible:
The scoping study has made a preliminary analysis of existing quality marks. The full study will conduct a more detailed investigation into the extent to which they are consistent with economic theory. Survey evidence shows that very few consumers make use of quality marks when selecting a lawyer. The full study will attempt to understand why, and look at the interrelationship between marks and other sources of information on quality in the marketplace.
We have identified that signals other than quality marks might aid consumers seeking to judge the level of quality of legal services appropriate to their needs. These include:
Price: Information about quality is only useful if consumers are able to relate it to price and decide what level of value for money they need. An analysis of price transparency in the market will therefore be conducted.
The study has not yet considered the value of QC as a quality mark. When doing so in the full study, the argument that it attracts a significant amount of international legal work to England and Wales will be examined.
In May 2004, the Secretary of State for Constitutional Affairs asked Queen's Counsel Branch to conduct an in-depth market study of the legal services industry in England and Wales, as one of two strands of work resulting from the 2003 consultation paper, Constitutional Reform - the future of Queen's Counsel.
As a result of concerns raised in response to that paper about a perceived shortage of information that would enable consumers to select legal services of an appropriate quality, the Secretary of State concluded that it was necessary to investigate the market in more detail. The aim was to determine whether those concerns were an accurate reflection of real consumers' experience; and, if so, to recommend ways of addressing them.
The other strand of work resulting from the initial consultation paper is an interim scheme for Queen's Counsel appointments, which the legal professions are designing with help from DCA and outside consultants. When the market study is complete, the interim scheme will be reviewed to ensure that it is compatible with any principles the Government adopts as a result of the study.