Dear Listener

A lawyer is not something most of us need that often during our lives. And if we do it is probably to write a will or buy a house. But if you need to sue a hospital, fight an insurance company, challenge a criminal prosecution, or get involved in a divorce then you may well need the help of a solicitor and perhaps a barrister as well. The costs of any legal action that reaches the courts – or could do – can be huge. And that is where, since 1949, Legal Aid has come in, subject to a means-test and certain other conditions. The cost of legal aid is now more than £2 billion a year. So it is not surprising that cutting that cost is part of the Coalition’s plans to reduce public spending.

Part of that will be saved by end legal aid for most divorce issues, for suing the NHS for clinical negligence and for appealing to an employment tribunal. Altogether the changes will shave about £350 million of the cost of legal aid. But one area of cuts has been ignored by the press. The Government also plans to stop legal aid for challenging decisions of the Department for Work and Pensions. Over the years the Department has misinterpreted its own complex rules on numerous occasions. And it has been the courts which have clarified the rights of thousands of low income and disabled people. Inevitably these challenges have been funded by legal aid. But if the changes are implemented all that will soon stop. Proposals for the Reform of Legal Aid in England and Wales is on the Ministry of Justice website. The consultation ends on Valentine’s Day. But who loves Legal Aid?

 ***IN MONEY BOX THIS WEEK***

A company is tracking down shareholders and charging them a percentage which can be as high as 17.4% of the whole shareholding to provide a share certificate and refund the dividends they may have lost.  The company takes this fee from unclaimed dividends or by selling shares and passes on the balance to the customer. However, individuals can do the job themselves for far less.

Average credit card interest rates hit a new high this week – 18.9%. But with the rate banks lend to each other over three months stuck at around 0.78% why the rising mark up on credit card debt? What does running your credit card really cost the banks?

Half a million women will soon be told they have to wait more than a year longer to get their state pension. Some will have to wait for two years at a cost in lost pension of £10,000 or more.

We look at the offer of a firm which provides cheaper car insurance if you have a black box fitted in your vehicle to record your driving habits. The scheme is particularly targeted at careful young drivers who, it says, can see big falls in their normally huge premiums. But is a teenage tachograph really a good idea?

I am a bit rushed today so apologies for lateness. Money Box is live on Saturday at 1204, repeated Sunday at 9pm and you can listen any time via the podcast page www.bbc.co.uk/podcasts/series/moneybox Check out our website www.bbc.co.uk/moneybox to read web pieces, download transcripts, follow links, send us stories or ideas you want us to look into and Have Your Say on one of our stories.

This newsletter is available at bbc.co.uk/moneybox/newsletter (tell your friends who don’t subscribe) and, as I mentioned, you can keep up with my random but timely thoughts on money 24 hours a day at twitter.com/paullewismoney.

e-mail Paul Lewis