The Law Society: what does a civil justice system fit for the 21st century look like?

In June 2025, The Law Society published its report on its long awaited 21^st Century Justice Project which sets out a number of wide-ranging potential reforms to improve the civil justice system as we know it, and to create a modernised service fit for the 21st Century: “A 21^st century civil justice system should be accessible to everyone who needs it, when they need it. We’ve outlined practical reforms in our final research report which will level the playing field for those of us seeking justice and enable more people to access legal advice”.

We examine the six key recommendations identified by The Law Society which are designed to overcome issues experienced by people when trying to navigate the legal system:

1. One trusted entry point for those with a legal need, and safer online dispute resolution

The Law Society highlights a lack of direct access to reliable and impartial legal resources available to the public, expressing concern that this leads people to rely on potentially incorrect or misleading information when researching the law.

To remedy this, the Law Society has proposed the establishment of a single, trusted website for those undertaking research when navigating their legal options. It also suggested the creation of an online dispute resolution ombudsman, to provide consumer protection against unregulated legal services providers and to create “a single front door” to the civil justice system.

2. Protecting legal consumers in the age of AI

The Law Society has cautioned more needs to be done to understand the impact of AI on the Justice system, particularly to protect consumers who are potentially relying on AI tools for legal advice. It has encouraged the legal sector to develop an AI strategy and identified three long term objectives which should be at the forefront:

• Innovation: AI should be used across the legal sector in ways which benefit both firms and clients in legal service delivery.
• Impact: The Law Society believes there should be an effective AI regulatory landscape informed and influenced by the legal sector.
• Integrity: The Law Society has championed the responsible and ethical use of AI which has been used to support the rule of law. To achieve this, it has proposed: (i) regulators should set standards for data within the AI lifecycle based on research and evidence; (ii) Courts should establish guidance on the use of AI; and (iii) law firms should create appropriate codes of conduct for employees using AI in the workplace.

3. A sustainable civil legal aid system

It is acknowledged that the current legal aid system is not functioning well. Legal aid was designed as a progressive means of levelling the playing field for the poorest and most vulnerable in our society, to ensure everyone has access to justice and representation should they need it.

However, the funding of legal aid and the criteria for who should receive it, is controversial and politically sensitive, leading to chronic underinvestment and a decline in the services provided.

According to the Law Society, legal aid fees for solicitors have not increased since 1996, and in 2011 they were cut by 10 per cent. Meanwhile, typical costs have increased by 95 per cent since 1996 and by 40 per cent since 2011. This combination makes it incredibly challenging for law firms to deliver legal aid work effectively, and the Law Society’s own research found that 82 per cent of legal aid providers sampled were making a loss on civil legal aid work.

To combat the continued decline of legal aid services, the Law Society has proposed that the Legal Aid Agency, which provides civil and criminal legal aid in England and Wales, should remove unnecessary complexity from existing contracts with practitioners and establish a “high trust” model similar to the approach taken in the Netherlands. The Law Society has proposed an independent review body should periodically assess legal aid fees to ensure they are properly maintained and keep pace with inflation.

4. Maximising the potential of ombudsman schemes to deliver access to justice

The Law Society believes ombudsmen services have significant potential and could “act as the gold standard for out-of-court dispute resolution” if carried out correctly.

However, there is a concern the current system is too fragmented and unwieldy. According to the Law Society, there are currently 22 ombudsmen schemes in the UK, with many gaps or overlaps between them which is confusing for consumers.

For example, of the 32,500 complaints the Housing Ombudsman received in 2021-2022, 6,500 were referred to other services, with nearly half of those going to different ombudsman services. This type of administrative failure results in increased delays, frustration and disillusionment for users, as well as increased administration and costs for providers.

The Law Society proposes reforming the landscape to merge services where there is overlap and to create a single ombudsmen service with enhanced powers for every major area of public life. It also proposes one government department (the Ministry of Justice) should lead on the ombudsmen policy in government with increased co-operation and streamlining between ombudsmen services, the tribunal service and the courts.

5. Addressing the risks and opportunities of unbundled legal services 

Typically, when an individual instructs a law firm, a solicitor will handle all aspects of the case from initial instruction through to the conclusion of the case. This work is usually carried out on a full retainer and charged on a time basis. However, the Law Society has noticed a growing trend of consumers willing to take on some of the case work (in particular administrative tasks) to reduce legal costs incurred. This is known as ‘unbundling’ which provides a lower cost option for those not eligible for legal aid but daunted by the high costs of legal action.

However, unbundling is not without risks:

• It relies on the consumer competently carrying out tasks which would ordinarily be carried out by a legal professional. Consumers may be less skilled or experienced, and this increases the risk of mistakes being made, which may subsequently cause greater delays, and inadvertently increase costs should rectifications be necessary.
• It can cause ambiguity as to what is and what isn’t within the solicitor’s scope of work. This in turn can cause conflict between the consumer and their legal representative as to the extent of the solicitor’s instructions as well as what costs can legitimately be incurred.
• There are concerns that recent court decisions have found legal professionals could still be held liable for case work undertaken outside of their retainer agreement or carried out by their client. Furthermore, it is not clear whether professional indemnity insurance would cover unbundled legal work carried out by clients, or a potential negligence claim brought by a client under such circumstances.

The Law Society proposes greater co-ordination between the legal sector, legal regulators and the insurance industry to ensure greater clarity on the consequences of unbundled legal work, and proper regulation and insurance. It has encouraged the Solicitors Regulation Authority to take steps to collate data on which firms deliver unbundled services and to provide clear guidance on the opportunities and risks for both consumers and law firms.

6. Legal expenses insurance that works better for consumers

According to the Law Society, around 14 million people have some form of legal expenses insurance which could be used to help pay for legal fees, but very few ever claim on their policies. Many consumers are unaware they have this insurance, as it is often bundled with other products such as home insurance.

The Law Society recommends the legal sector works more closely with the insurance industry to increase awareness of these products. Solicitors are advised to have more proactive conversations with prospective clients about what policies they may hold. This is soon going to be a requirement, with the Law Society updating its practice note on Client Information Requirements to make specific reference to legal expenses insurance.

It is important to remember these proposals from The Law Society, while not binding, are unlikely to all be ultimately be adopted by the government. The report provides a useful insight into the challenges of the current civil justice system, as well as the likely direction of travel for future reforms.

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