UK’s ‘Help with Fees’ scheme won’t define crypto as disposable income
British citizens who hope to access legal assistance through the proposed “Help with Fees” (HwF) scheme will not have cryptocurrency holdings classified as disposable income.
The United Kingdom’s Ministry of Justice published its response following public consultation over its proposed legal aid scheme to provide equal access to the justice system. HwF aims to provide financial support for court or tribunal fees to individuals with low income and minimal savings.
The scheme intends to ensure that individuals are not prevented from accessing courts and tribunals due to an inability to afford the fees associated. Its primary objectives look to ensure access to justice for low-income individuals, provide money to taxpayers who ultimately bear the cost of fee remissions, and ensure the scheme is accessible and eligibility criteria are clear.
Related: UK Law Commission recommends ‘distinct’ legal category for crypto
The public consultation process drew questions relating to the Ministry of Justice’s proposal to amend the definition of disposable capital to include savings and investments with a “non-exhaustive list” of examples that included cryptocurrencies.
According to the ministry, most respondents support the proposal, highlighting that it helps capture investments that are not available as liquid assets.
Meanwhile, other respondents who disagreed with the proposal commented that applicants should not be penalized for having savings and investments, especially pensioners and self-employed individuals:
The government’s response stressed that it would not propose an exhaustive list of the types of capital that would constitute savings and investments, as it would create “unnecessary risk” for all types of capital omitted or
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