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Law Society demands compensation for legal aid firms facing cashflow pressures from LAA cyber-attack disruption
Law Society of England and Wales has warned that legal aid firms are still waiting for compensation a year after the cyber-attack on the Legal Aid Agency, despite significant disruption and financial impact.
The attack, first detected in April 2025, led to a major data breach and forced the LAA to take its digital systems offline, triggering contingency measures across the sector.
In a fresh intervention, the Law Society said firms have faced ongoing administrative burdens and cashflow pressures but have yet to receive financial redress. Law Society president Mark Evans said: “It is deeply concerning that, one year on from the cyber-attack, legal aid firms are still waiting for compensation for the disruption caused.”
He added that many providers had been left to absorb costs arising from failures outside their control, warning: “Legal aid firms operate on very tight margins and simply cannot afford to shoulder the financial burden of a cyber-attack on a government system.”
The Society reiterated calls for compensation, arguing that legal aid providers many operating on tight margins have been left to absorb costs caused by failures in government systems. While it acknowledged some support measures put in place to maintain operations, Evans said these did not go far enough: “While we welcome the steps taken to keep the system running, these do not address the full financial impact on firms.”
He also highlighted ongoing uncertainty in the system, adding: “We are seeking clarity from UK government on their timetable for implementing the means test changes.”
Evans further pointed to wider risks exposed by the incident, saying: “This cyber-attack has exposed serious vulnerabilities in the Legal Aid Agency’s IT systems, which must now be urgently addressed.”
The Law Society said it will continue pressing for compensation and sustained investment in LAA infrastructure, warning that without meaningful support, the long-term sustainability of legal aid provision remains at risk.