**Company no :2433492 Charity No:  1088588** 

## **LAW CENTRES FEDERATION** 

**Report and Audited  Financial Statements** 

**31 March 2025** 

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## **Law Centres Federation Reference and Administrative Details for the year ended 31 March 2025** 

**Company number** 2433492 **Charity number** 1088588 **Registered office and operational address** 1 Lady Hale Gate Gray's Inn London WC1X 8BS 

**Executive Officers** The following served on the executive Committee throughout the year: **From 1 April 2024 to 22 November 2024:** Chair: Helen Rogers Vice Chair: Ursula O’Hare Vice Chair: Vicky Fewkes Treasurer: Patrick Marples Secretary: Ngaryan Li Committee Members:   Sara Chandler (co-opted on 11 December 2023) Michael Fawole Najwa Hassan Laura Hastie Peter Kandler (co-opted on 11 December 2023) Victor McAllister Lydia Nash Pamela Robotham (co-opted on 11 December 2023) Sagar Shah Emma Stradling Linda Summers Mark Weights 

## **From 22 November 2024 to 31 March 2025:** 

Chair: Helen Rogers Vice Chair: Nick Whittingham Vice Chair: Michael Fawole Treasurer: Victor McAllister Committee Members:   Sara Chandler (co-opted on 9 December 2024) David Jackson Peter Kandler (co-opted on 9 December 2024) Ngaryan Li Lydia Nash Pamela Robotham (co-opted on 9 December 2024) Sagar Shah Miriam Smith-Ihionvien Thomas Stephens Emma Stradling Gareth Thomas Mark Weights 

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On 31[st] March 2025 there was 1 elected vacancies on the committee. The officers and committee members are all members of the Executive Committee. 

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2025 was 40. 

Members of the Executive Committee had no beneficial interest in the charity. 

Bankers: The Cooperative Bank Islington High Street London N1 9TR CAF Bank 25 Kings Hill Avenue Kings Hill, West Malling Kent, ME19 4JQ Charity Bank Ltd Fosse House 182 High Street Tonbridge TN9 1BE 

Auditor: Goldwins Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG 

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## **Law Centres Federation** 

## **Report of the Executive Committee for the year ended 31 March 2025** 

The Law Centres Federation is a registered charity and a company limited by guarantee. It is governed by the Memorandum and Articles of Association created in 1978 and last updated at the 2022 AGM. The company is registered at Companies House, registration number 2433492. The company is also a Registered Charity registration number 1088588. 

The Law Centres Federation trades as the Law Centres Network (LCN). 

The reference and administrative details on page 1 form part of this report. 

The Executive Committee, which is also the Board of Directors of the charitable company for the purposes of the Companies Act, submit its annual report and financial statements of the Law Centres Federation for the year ended 31 March 2025. The Executive Committee confirms that the annual report and financial statements of the Law Centres Federation comply with current statutory requirements, the requirements of its governing document, as provided in its Memorandum and Articles of Association, and the provisions of Accounting and Reporting by Charities preparing their accounts in accordance with Accounting and Reporting by FRS 102 Charities SORP. 

## **Election of Directors/Trustees to the Executive Committee and ongoing Training** 

LCN is governed by an elected Executive Committee which has corporate and legal responsibility for all activities and functions of the organisation. 

People are nominated prior to election, or re-election, by member Law Centres at the Annual General Meeting, in accordance with the Memorandum and Articles of Association of the Law Centres Federation. This provides for the election of 15 members: five officers, five representatives of member Law Centres’ management committees and five employees of member Law Centres. Up to five additional Executive Committee members may be appointed by co-option. 

The Law Centres Network is committed to ensuring that the membership of the Executive Committee reflects the diversity of its member Law Centres. It annually reviews its composition for diversity as well as the skills of its members to ensure that a balance is maintained of geographic, developmental, financial, legal and management skills across the Executive Committee to enable it to discharge its duties. 

An induction event is offered to new Executive Committee members at the beginning of their term of office. All new Executive Committee members receive an induction pack that includes information about the Law Centres Network, and a briefing that outlines the roles and responsibilities of the Executive Committee as both company directors and charity trustees. Recent copies of minutes, management accounts and management reports, together with copies of the Memorandum and Articles of Association, are included in the induction pack. This pack is available online for all committee members. 

## **Charity Governance Code** 

Throughout the year, trustees are provided with updated information on changes to relevant legislation, their responsibilities as trustees, new guidance provided by the Charities Commission or other relevant information that may assist them to carry out their duties as Trustees. We also provide training on relevant topics. 

Trustees are aware of the Charity Governance Code published in 2017 that sets out the principles and recommended practice for good governance within the sector. LCN has reviewed its governance arrangements against the principles within the Code and believes that it is compliant whilst maintaining its need to operate its governance efficiently. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

The charity purchased insurance costing £1,106.43 included in Support Costs, to protect it from loss arising from neglect or default of the Trustees Directors / Executive Committee members and to indemnify the Trustees against the consequences of neglect or default on their part. 

## **Risk Management** 

The Executive Committee (EC) has overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. The system of internal controls is designed to provide assurance that the charity’s funds are used in line with its charitable objects, for the purposes for which they were granted and for the public benefit.  These controls include: 

- A strategic plan, an annual budget and a cashflow projection for the next 18 months, all approved by the Executive Committee. 

- Regular oversight and consideration by the Executive Committee of financial information, variance from budgets and non-financial performance reports. 

- Delegation of authority and segregation of duties. 

- Identification and management of risk. 

Overall responsibility for the Law Centres Network rests with the Executive Committee. Day-to-day management of the LCN has been devolved to the Director. 

The LCN undertakes formal risk management reviews.  The Finance sub-committee of the EC has been charged with monitoring risk each quarter to report back to the EC meeting and alert it of any new risks or issues of concern. The Sub-Committee reviews the types of risk the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying ways to mitigate the risks. 

LCN identified the key risk in the coming three years as: securing sufficient core funds, particularly given the ending of multi-year grants; loss of key personnel; cyber security; and the ongoing difficulty Law Centres, and all organisations across the legal aid sector, have recruiting and retaining suitably qualified staff. The Trustees also consider the potential impact of political instability and a regularly changing policy environment as a risk for both Law Centres and LCN. Mitigations are in place for each of these risks. 

The Executive Committee is pleased to report that the charity’s internal financial controls conform to guidelines issued by the Charity Commission. 

## **Pay and remuneration of the charity’s key management personnel** 

The LCN has in place a Salary Policy. All salaries are set and managed in reference to the policy which is reviewed regularly. All LCN staff including key managers have their salary set against the NJC Pay Scales and in accordance with the Salary Policy. New staff starting salary is set at the pay point which most closely matches their job description. Increases to the Award, which occur from time-to-time, are passed on to staff. The Human Resources Sub-Committee of the Executive Committee monitor salary policy and make changes as required. 

## **Public Benefit** 

The Executive Committee (EC) considers that the activity undertaken to achieve its Vision and Mission are for the benefit of the public. The EC referred to the guidance contained in the Charity Commission’s general guidance on public benefit including the guidance ‘Public Benefit: Running a Charity (PB”)’ when reviewing its strategic objectives and setting the approach it will take as part of its annual planning process. The EC also reviews progress against the objectives and activity undertaken on a quarterly basis. 

LCN's activities benefit the public in 3 ways: 

1. Through working with organisations to establish Law Centre services in new areas, thereby increasing access to free legal assistance for people in financial hardship. 

2. Through providing services to Law Centres that enable them to provide legal services to vulnerable and disadvantaged people in their communities with activities such as assisting with tender preparation and funding bids, training, governance support, facilitating effective collaboration and sharing of resources. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

3. Through policy work that seeks to address the underlying causes of people's legal problems through strategic projects, through responding to consultations, participating in reviews, representing Law Centres with decision makers, and through working to extend the availability of free legal services for disadvantaged people. 

LCN reports publicly on its activity and impact in its Annual Review available on our website: **Read Annual Review 2023–24** and published with our annual return to the Charities Commission. 

Throughout 2024-2025 LCN considered all its activities were for the benefit of the public and were guided by our strategic plan. 

## **Objects and Activities** 

The Law Centres Federation (LCN) is the national organisation that represents Law Centres. The term “Law Centre” is a registered trademark, available for use only by members of the Law Centres Federation. 

The objects of the Law Centres Federation (LCN) are: 

1. To relieve charitable need, in particular financial hardship, and in so doing provide assistance to Law Centres and encourage the formation of Law Centres in the United Kingdom 

2. To advance the education of the public by assisting Law Centres in improving and diffusing knowledge of the law and the practice of the law and the administration of justice, having regard especially to those areas or the law which are of particular concern to poor people or are directed to the relief of poverty. 

Law Centres are not-for-profit legal service providers, specialising in social welfare law (housing, immigration, employment, welfare benefits, mental health, community care, public law, etc) and related areas of law that affect people in their daily lives, particularly people who are vulnerable and/or economically disadvantaged. Without Law Centres hundreds of thousands of people would have no meaningful access to justice and could not resolve their problems so would be hindered from taking up opportunities. 

To become a Law Centre an organisation needs to be vetted by the Law Centres Network, and then voted in by the current membership at a General Meeting. To enjoy the benefits of membership each Law Centre has to comply with membership regulations, including employing at least 2 lawyers and having an independent management committee drawn from the community it serves. 

On 31 March 2025, there were 40 Law Centres (with 44 offices / branches) that are members of the Law Centres Network. LCN also has 2 Affiliates. Affiliate status is intended specifically for collegiate law clinics, operated by law students under professional supervision, to ally themselves with Law Centres’ work for access to justice and to suggest social welfare law as a career path to a new generation of legal professionals. 

The Executive Committee secured resources to employ a Director with 11 staff to implement the organisation’s strategic objectives in 2024-2025. These are reviewed and agreed each year so that LCN can achieve its vision and mission: 

**LCN’s Vision -** The Law Centres Network strives for a just and equal society where everyone’s rights are valued, defended and protected. 

**LCN’s Mission -** We uphold justice for socially and economically disadvantaged members of society by supporting a national network of Law Centres that use their legal skills as a tool for change and their legal expertise to defend the rights of people in their communities. We represent Law Centres at all levels of government and national forums, we help centres to maximise their potential as sustainable organisations, we initiate new Law Centre services for particularly vulnerable groups, and we champion the Law Centre model. We are the collective voice of Law Centres. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **LCN’s Theory of Change** 

Below is our Theory of Change that illustrates how LCN will achieve its Mission and make the change we seek to make in service of our charitable objects. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

The Theory of Change illustrates **LCN’s Strategic Objectives for 2024-2025** (until 2029). 

**1. Help Law Centres to thrive** 

**2. Strengthen the network of Law Centres** 

**3. Amplify the collective voice and profile of Law Centres** 

The Law Centres Network acts as a catalyst for activity across Law Centres, working on a national level to reveal injustice, analysing needs and root causes and advocating for change. LCN is uniquely placed to identify what has worked, collect evidence and share that learning across the network of Law Centres and then support other Law Centres to take up proven methods. It drives quality across Law Centres and enables local Law Centres to join together so they can design strategic national responses and exert influence, yet still be embedded in and driven by the needs in their local communities. In this way LCN achieves its charitable objects and its public benefit is produced. 

## **5-year Strategic Plan** 

LCN continued to implement its 2024-2029 strategic plan in 2024-2025. 

Out our strategic planning meeting in February 2025 we reaffirmed our particular focus to harness the network of Law Centres to achieve a deeper impact. The following illustration indicates **how** LCN achieves this impact. The work undertaken to achieve this is illustrated below: 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Impact 2024-2025** 

LCN categorises its work by **Initiatives** that are undertaken to achieve our strategic objectives, **workstreams** that are undertaken to implement the initiative, and **tasks** that are done to complete the workstream. Following are a series of graphs illustrating our progress over the last year. 

## **Tasks:** 

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## **Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025 Areas of Work:** 

## **Workstream details:** 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

**Progress against LCN’s Strategic Objectives for 2024-25** 

## **Strategic Objective 1 - Help Law Centres to thrive** 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

**In 2024-2025** to achieve the objective to **Help Law Centres to thrive** the following streams of work were undertaken. The work was funded by: 

- LCN Membership Subscriptions 

- AB Charitable Trust 

- John Ellerman Foundation 

- London Legal Support Trust – Cost of Living 

- The Legal Education Foundation 

Law Centres are uniquely placed to use the law as a tool for social change, but our network is only as strong as our weakest member. Our continued progress towards a just and equal society is only possible if each and every Law Centre can secure and deploy the resources it needs. Our work under this objective is about supporting Law Centres to: 

- **improve their financial sustainability** 

- **identify and embed best and emerging practice** 

- **better understand their role as legal advice organisations within their local ecosystem of residents, community groups, and other charities** 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

- **manage and deploy their people, money, buildings, time, equipment, and data more effectively** 

- **identify potential challenges at an earlier stage and act quickly to mitigate them** 

Beyond these overarching themes, our close relationship with members means we can respond quickly and strategically to emerging pressures and opportunities, such as developments in AI or new pathways to solicitor qualification. 

This year, we have undertaken work in the following initiatives: 

|**Initiative Name**|**Description**|
|---|---|
|**AI Tools, Monitoring and Information**<br>**Sharing**|Understanding how LCN and Law Centres can leverage<br>AI in their work, and ensure that onboarding and<br>ongoing use of AI is undertake within a proper<br>governance framework so use of AI is in accordance<br>with values and data is protected.|
|**Digital Back Office Project**|Implementing  a custom configuration of Salesforce<br>designed on Law Centres’ requirements for managing<br>back-office functions like HR, grants, contacts and<br>office compliance.|
|**Digital Development and New Tech**|A framework to support Law Centres at different stages<br>of development and with differing resource constraints<br>and differing levels of buy-in and no ultimate control.|
|**Digital Program Management**|LCN’s digital transformation programme is a framework<br>to support the individual digital transformation of Law<br>Centres to enable them to harness digital solutions to<br>enhance their ability to strive for a just and<br>equal society where everyone’s rights are valued,<br>defended and protected.|
|**Enquiry Desk**|A project as part of LCN's wider Digital Transformation<br>Program to test out the concept of deploying a tool to<br>help Law Centres capture data on enquiries and client<br>profile, including those people they have to turn away.|
|**IT Infrastructure**|This is part of LCN's broader Digital Transformation<br>program to ensure that Law Centres have the IT<br>infrastructure they need to effectively and efficiently<br>run their Centre and deliver services.|
|**Law Centre Capacity Building**|This is about building Law Centre's capacity, so they are<br>better able to meet the needs of their clients and<br>respond to their communities. It includes direct<br>support and training.|
|**Law Centre Data**|Building the data maturity of Law Centres to ensure<br>they have the right skills, tools, leadership, culture and<br>governance to collect, analyze and draw insights from<br>the important data they hold on operations and legal<br>work.|
|**Law Centre Funding**|This is part of LCN's routine work to provide funding<br>support to Law Centres in the form of: capacity building<br>direct support and training raising awareness of funding<br>opportunities supporting or leading on collaborative<br>bids developing resources and sharing learning on<br>applying for and managing grants, donations and<br>contracts.|
|**Law Centre Workforce Development**|Supporting Law Centres to attract, recruit, develop and<br>retain the staff they need.<br>13|





**Law Centres Federation** 

## **Report of the Executive Committee for the year ended 31 March 2025** 

|**The Hub Approach**|Ongoing support to help Law Centres better understand<br>their role within their communities, to engage more<br>effectively with the people they represent, and to<br>contribute their legal expertise to a joint effort in<br>creatingsocial change.|
|---|---|
|**Individual Law Centre fundraising,**<br>**consultancy and support**|Responding to requests for assistance from individual<br>Law Centres on a range of topics from governance, to<br>regulation, to HR, to administration, to financial<br>management, to contract management, ongoing<br>sustainability,  etc.|



## **Underpinning each of these initiatives is a series of workstreams, including the following HIGHLIGHTS in 2024-2025:** 

## **Developing paid internships** (funded by Propel) 

The Law Centre workforce is more diverse than the wider legal sector. However, we know that people from historically excluded communities often face systemic barriers to employment, including those who want to work in Law Centres. As part of our work to become an anti-racist movement, we are committed to identifying these barriers and supporting people to overcome them. 

In 2024-25 we worked with the 10,000 Interns Foundation to create six paid internships in LCN and Law Centres as part of the 10,000 Black Interns programme. By matching aspiring Black students and graduates with employers, ensuring pay at the Real Living Wage, and providing additional training and support, this programme enables young Black people to gain valuable experience in their chosen sector. In 2022, 80% of interns said they would not have secured an internship without the programme. 

We supported four Law Centres to recruit from 200 candidates, with internships running between June and August 2025. If successful, we intend to repeat and expand this work to include more Law Centres and engage with other historically excluded groups, such as deaf and disabled people. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

**Responding to Law Centre requests for support** (funded by The Legal Education Foundation) Law Centres have long looked to LCN for support, whether in developing new approaches or resolving emerging issues. As our capacity is finite, we focus on our role as convenor – connecting those who need advice, guidance or support with those best placed to provide it, whether they other Law Centres, trusted consultants, or other partners within the sector. 

An example of this approach in practice relates to a Law Centre that came to us in early 2024 with a number of challenges which, when combined, threatened its viability. Following an initial assessment by LCN staff, we commissioned a trusted consultant to conduct an in-depth review and report their recommendations. We then worked with trustees and senior staff at the Law Centre to agree a support package which included further consultancy and infrastructure support. We also convened expertise from across the Network to strengthen the management committee and mentor senior staff. Our approach ensured that the immediate crisis was resolved and, while much remains to be done, the Law Centre is in a more sustainable position. Meanwhile, those from other Law Centres who leant their support also gained experience and new skills. 

In addition to this peer-to-peer model, we also delivered 53 one-to-one support sessions, helping Law Centres to resolve a range of issues. We also delivered 10 training sessions and workshops on key topics including compliance, supervision, data maturity, AI, and legal aid contracting. Each of these was recorded and uploaded, along with accompanying resources, to our Law Centres Platform to support asynchronous learning. 

## **AI and Emerging Technology** 

We are actively monitoring developments in the application of artificial intelligence (and other technological innovations) within the legal and charitable sectors, as well as the evolving frameworks governing AI and their implications for our operations and those of Law Centres. Our organisation has prepared comprehensive guidance and training materials to support Law Centres in effectively and safely implementing AI solutions. We are piloting a range of AI tools (such as Copilot and ChatGPT) to evaluate their utility, identify areas where they provide value or fall short, and disseminate noteworthy use cases from across Law Centres and the wider legal and advice sectors within our Network. While we are cautiously optimistic about the potential efficiencies AI may introduce in the coming years, we recognise it is not a definitive solution for challenges related to access to justice. We remain committed to engaging with our members to understand their perspectives on the role and significance of AI in our field, while emphasising the indispensable contributions of legal advisors in guiding individuals through periods of crisis. 

## **Data Project** 

This year saw the launch of our ambitious ‘Unlocking the Power of Data’ project. With data now one of our most business-critical assets, this five-year programme aims to improve Law Centres’ ability to leverage data for storytelling, fighting injustice and decision-making; as well as how to effectively govern and protect our data assets. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

The project aims to enhance Law Centres' understanding of data usage, emphasising the role of all the team in improving data practices. It hopes to make it easier to demonstrate how locally or regionally collected data can illustrate issues faced by Law Centres and support funding efforts, as well as contribute to internal efficiencies and impact assessment. Regardless of each Centre's current level of data maturity, the project seeks to clarify the meaning of data, key elements of effective data management, and best practices. It also strives to establish a consensus within the network regarding the purpose and use of collected data. The project has a large focus on skill development – both at leadership level: to embed improved data work within the organisational culture and strategic approach, as well as the data skills across the team: whether this be around using tools, visualizing and analysing data, protecting, sharing data etc.   The initial year of the project will primarily involve research, discovery, and planning, focusing on identifying core challenges, determining areas of interest and feasibility for Law Centres, and preparing for subsequent implementation phases. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Our Progress in 2024-2025** : 

## Illustration of the **impact** of this work in 2024: 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Strategic Objective 2 - Strengthen the network of Law Centres** 

The following programmes of work were funded by: 

- LCN Membership Subscriptions 

- AB Charitable Trust 

- Baring Foundation 

- Bell Foundation 

- City Bridge Foundation 

- John Ellerman Foundation 

- Bell Foundation 

- London Legal Support Trust – PROPEL 

- Paul Hamlyn Foundation 

- Talent Fund 

- The Legal Education Foundation 

- The Law Society 

Our members tell us that one of the biggest benefits of being a Law Centre is the opportunity to join with others in a combined effort to change society for the better. Although each is unique, they are all working towards the same goal, with shared challenges and opportunities. They can also do more because they’re together. This objective is about convening and connecting Law Centres to leverage their shared experience and deepen their impact by working together to address systemic issues. This helps to ensure that Law Centres: 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

- **Offer consistently high-quality services** 

- **Feel part of a movement** 

- **Collaborate on strategic projects** 

- **Are desirable places to work** 

It also aims to make sure that LCN has the resources it needs to properly support its members. This year, we have undertaken work in the following initiatives: 

|**Initiative Name**|**Description**|
|---|---|
|Law Centre Engagement|Deepening LCN's relationship with Law Centres so that we<br>have the intelligence we need to support them, convene<br>them,and advocate for them.|
|Law Centre Workforce Development|Supporting Law Centres to attract, recruit, develop and<br>retain the staff theyneed.|
|LCN Conference|Holding an annual conference to bring together Law<br>Centres around shared challenges and interest areas,<br>building community and action planning on how as a<br>Network we cangrow and thrive.|
|LCN Data|This is about building the data maturity of LCN to<br>ensure we have the right skills, tools, leadership,<br>culture and governance to collect, analyze and draw, as<br>well as share, insights from the important data we hold<br>on our operations and Law Centres’ legal work.|
|LCN Finances|This is about ensuring LCN has the financial resources<br>it needs to deliver its objectives and ensuring the<br>organisation is financiallyresilient|
|LCN Governance|This is about ensuring LCN has the relevant governance<br>infrastructure to ensure the effective running and<br>stewardshipof the organisation.|
|LCN Website|This is about designing and improving LCN's website<br>through agile iteration.|
|LCN Workforce Development|This is about ensuring LCN has the workforce it needs<br>to deliver on its objectives.|
|Member's Platform|This initiative is about developing a platform for<br>members and LCN to share information and engage<br>with one another.|
|New Law Centres|This is about increasing the coverage of Law Centres<br>across the country. The work is mainly reactive but with<br>more capacity can allow for more proactive activity to<br>build up Law Centre presence, particularly in so called<br>'advice deserts'.|



Our **progress** and **impact** are illustrated below. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Some HIGHLIGHTS in 2024-2025** 

## **Workforce Development** 

As the UK struggles through tough times, this is keenly felt in Law Centres, who help those worst affected. Our network-wide employee assistance programme reflects the toll this takes on Law Centre people. This year, nearly two-thirds of the colleagues who have used it have accessed counselling, with anxiety being the most common complaint, in 2 in 5 of cases. We are glad to be able to offer this resource, which also offers confidential advice, guidance and a wellbeing portal. 

In these conditions, workforce development continues to be among our biggest challenges. Building on previous scoping work, this year we continued to explore it with Law Centres, sector colleagues, funders and the Legal Aid Agency. Thanks to the Propel programme, we have secured funding to work with five London Law Centres over the next three years. This has allowed us to recruit a cohort of seven apprentice solicitors to increase access to justice in the capital, while testing new approaches to recruitment, training and retention. We will share our learnings nationwide as we continue to seek additional funding to address the different challenges of Law Centres outside of London. 

**Developing a Law Centres’ Hub** (Members’ Platform) 

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## **Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

Several years ago we developed the concept of a ‘Law Centre in a Box’; a virtual toolbox containing everything you would need to effectively run a Law Centre. Building on this we launched the Law Centres’ Platform in 2021; an online space where Law Centre staff and volunteers could connect and learn. 

Although elements of the Platform proved successful, the bespoke architecture meant that resolving bugs or adding new features required costly developer expertise. Users also reported that they disliked leaving their native workspace (Microsoft365) to access the tool. Finally, we wanted to create more and better ways for Law Centre staff to connect to their peers and share good practice. In 2024-25 we have developed the Law Centres’ Hub: 

Built within M365 the Hub is more accessible for users, easily maintained and developed by LCN staff, and features and security are supported by Microsoft and our IT partners. Due to launch later in 2024, we are excited to develop the Hub in partnership with Law Centres, adding new content and functionality over time. 

## **New Law Centres** 

As a movement for change we continue to grow. Over the last year we have streamlined our application and on-boarding process for prospective members, greatly reducing the administrative burden and providing a clearer pathway to Law Centre status. 

In 

November 2024, we welcomed Leeds Citizens Advice to be now known as Leeds Citizens Advice and Law Centre. As an opening act of support for the network of Law Centres, Leeds will host our 2025 Annual conference in June 2025. 

## **Law Centre Spotlights** 

Each month during 2024-25 we highlighted best and emerging practice in Law Centres through online Spotlight sessions. Each ‘lunch and learn’ session was open to all Law Centre staff and volunteers and 21 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

included a short presentation followed by a group Q&A. Staff from a variety of roles presented innovative and creative approaches to legal practice and a wide range of shared problems and priorities. Topics included education law, health justice partnerships, trauma-informed supervision, and supporting Roma communities. Through these sessions we aim to highlight innovation, promote curiosity, and increase peerto-peer support and learning. 

## **LCN Governance** 

With the expertise and many hours of work from Allen & Overy Shearman, LCN has competed its revised Articles of Association which has also been approved by the Charity Commission. 

In addition to the revised Articles, the Membership Agreement is being rewritten to sit alongside the new Articles. Like the Articles, the purpose of the Agreement and the criteria of membership will remain the same, but it will more clearly set out what it means to be a member of the network of Law Centres. 

Both documents will be presented to the 2025 AGM for adoption. 

## **LCN Data** 

Having adopted the new Theory of Change and agreed the next 5 years’ strategic plan, LCN has put considerable work into collecting the data that can evidence our progress and impact against the Theory of Change and Strategic Plan. The graphs throughout this report are produced by LCN’s Salesforce implementation developed to collect the data and other evidence to monitor and report on our work. It is a long and slow process and not finished yet. We will continue to develop the data we collect as we better understand how we should measure our impact. 

Data is a critical resource for LCN, Law Centres and most other organisations. Consequently, the governance of data, its security and the protection of privacy are now major areas of concern. LCN has Cyber Essentials accreditation and assists Law Centres to become accredited. Data governance is an area of work that continues to grow and will be a major focus in coming years. 

Developing LCN’s and Law Centres’ data maturity is a key project for the coming 5 years supported by the City Bridge Foundation. 

## **Cybersecurity** 

With the ever-growing increase and risk of cyber-attacks, especially directed at legal and charitable organisation, we have ramped up our efforts to help our members stay safe. A big part of this involves achieving our own Cyber Essentials accreditation each year and supporting Law Centres to do the same. This 22 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

year, we helped 13 Law Centres secure Cyber Essentials or Cyber Essentials Plus and have developed guidance and policies to help ensure ongoing compliance. We undertook third-party independent testing of the setup and configuration of our National Microsoft 365 tenant to identify and act on any improvements to bolster security.  We ran regular simulated phishing attacks improve our cybersecurity posture by educating employees on how to identify and respond to real-world phishing attempts.  Our Network Information Governance working group has also met regularly thought the year to improve policies and procedures around accidental data loss and data breach. 

## **National Conference 2024 – Unleashing the Power of the Network** 

The National Conference was held in Birmingham in June 2024 attended by 108 delegates. The 2 days of conference was captured by the illustration below. 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Our Progress in 2024:** 

Illustration of our **impact in 2024** : 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Strategic Objective 3 - Amplify the collective voice of Law Centres** 

## The following programmes of work which was funded by: 

- LCN Membership Subscriptions 

- Esmée Fairbairn Foundation 

- John Ellerman Foundation 

- The National Lotteries Community Fund – Awards for All 

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**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

To bring about a just and equal society, we need to work toward social change. To affect social change,  we know that Law Centres must not stick to their proverbial knitting. Rather, we need to engage the public with what Law Centres’ work teaches us about the change that our society needs. To do this well, LCN has identified as one of its key objectives the raising of Law Centres’ profile, which in turn would enable us to amplify their advocacy voice. 

Pursuing this, LCN aims first to establish Law Centres’ standing in the discourse on social reform. We make people aware of Law Centres and what they do, emphasising their professionalism as law practices, their strong roots in their respective communities, and their places in a wider, longstanding movement. This then creates space for LCN to speak out more effectively: convey their clients’ voices, to point out injustices and how they can be righted, and to support their arguments with data and expert analysis. 

There are two distinct but overlapping parts to this work, the first is focused on policy and direct advocacy, and the second on communications (public advocacy), profile raising and building Law Centres’ brand’s recognition – that is, people’s understanding of what we stand for and why they should listen to us. Last year, these were borne out in four high level areas of work. 

To achieve this, we are undertaking the following initiatives: 

|**Initiative Name**|**Description**|
|---|---|
|**Access to Justice**<br>**Policy**|Advocating with the government and other stakeholders for a fairer access to<br>justice policy, beyond legal aid: this includes commissioning legal support services,<br>maintaining the justice system's accessibility to vulnerable people through court<br>reform and digitalisation, ensuring that new forms of dispute resolution better meet<br>legal needs,and that legal service regulation isproportionate and enabling.|
|**Civil Legal Aid Policy**|Advocating with the government for better civil legal aid policy: more inclusive<br>scope and eligibility, greater availability across the country, more streamlined<br>processes and fairer remuneration - as well as greater infrastructure investment in<br>local offices and the legal aid workforce.|
|**Communications -**<br>**External**|This initiative covers LCN approach for raising the profile of Law Centres and their<br>work externallyand includes LCN’s website.|
|**Law Centre Branding **|This is about developingand sharingthe Law Centre brandingmaterial.<br>26|





**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

|**Communications -**<br>**Law Centres**|This initiative covers LCN approach for building Law Centres' capacity and skills<br>around communications,includinghow LCN communicates with Law Centres|
|---|---|
|**Law Centre Data**|This is about analysing and using Law Centres’ data to tell the story of what Law<br>Centres see everyday, to highlight their unique contribution to access to justice and<br>to make them better known.|
|**Social Justice**<br>**Advocacy**|Collective heading for LCN's advocacy work on issues relating to Law Centres' work<br>that are beyond the justice portfolio: these include migrant rights and migrant<br>support, renters' rights and access to redress, workers' rights, disability rights and<br>overall human rights.|
|**Overcoming**<br>**Language Barriers to**<br>**Access Justice**|The project will use LCN’s policy expertise together with that of the partners to help<br>remove barriers that prevent people who speak English as another language to<br>access justice.<br>We will use LCN’s membership of various reference and advisory groups with<br>Ministry of Justice (MoJ) and His Majesty’s Court and Tribunal Service (HMCTS) to<br>identify and advocate for changes required to services (including digital tools) to<br>enable better access to the justice system. We will also work with the partner Law<br>Centres to identify systemic barriers at a local level and identify and advocate for<br>the change needed.|



## **Highlights for 2024 - 2025** 

This year has been clearly affected by the UK general election, the change of government and our new national and international context. In public policy terms, the election and, to a lesser extent, the autumn statement shortened the year. It also drove some course adjustments as the new government’s priorities changed, purse strings were tightened and expectations were managed. Against this background, our advocacy impacts this year are all the more appreciated. 

Influencing to make **legal aid** more sustainable: 

- LCN and Law Centres contributions earlier have led to critical findings and recommendations for comprehensive change in the government’s Review of Civil Legal Aid, or **RoCLA** . 

- LCN has lobbied ministers and officials for improving legal aid terms and investing in it. New government has renewed its commitment to legal aid, and has consulted on proposals for increasing **immigration and housing legal aid fees** by £20m per year. These categories are not only those in most immediate need of support, they are also the two most common practice areas for Law Centres. The fee increase is now awaiting implementation. 

- LCN has collaborated with others to support a legal challenge to the terms of the **welfare benefits legal aid** contract. The new government has settled the case and escape fees are now available for welfare benefits legal aid cases. This has particular benefit for Law Centres, that make up over half of welfare benefits legal aid providers. 

Advocacy to expand **access to justice** supports: 

- LCN was invited to take part in the **Legal Support** Strategy Delivery Group, led by the justice minister, which aims to bring the legal and advice sector together to influence how the much smaller funding scheme can best support more legal assistance. Law Centres, we want to build on our previous advocacy to keep funding levels at least comparable to those of recent legal support funding. 

- Following advocacy from LCN and other groups, the new government has agreed to extend the exemption of housing cases from the civil courts’ **Fixed Recoverable Costs** regime. The three-year extension is longer than the original two-year period. The housing exemption is important to the economics of legal aid housing practices. It is also key to upholding the rights of tenants to a live in decent rented homes and not in neglect and disrepair. 

- **Represented Law Centres’** interests and voice with policymakers, decision makers and parliamentarians at national level, meeting new ministers several times, and responding to four consultations in a policy year shortened by the election. Also being external stakeholders’ first point of 

27 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

contact with our wider network, e.g. as the Cabinet Office considered updating Equality Act provisions. 

- Undertook **upstream influencing** work by informing other representative bodies’ submissions where we have no capacity to engage directly (the Treasury’s Spending Review consultation) or where we are not directly consulted (legal aid contract conditions), and contributing to a short-term applied academic project on strengthening the rule of law. 

Policy work in support of **other objectives** : 

- Since the general election, guided Law Centres on how to **engage their local MPs** , most of whom were newly elected, and build supportive relations. This included general guidance on methods, positions and messaging; template documents (e.g. letters to MPs urging a charity exemption from NICs); individual background briefings; and other direct support. 

- Provided **advocacy support** to several collaborative LCN and Law Centres projects: countering discriminatory practices by DWP, supporting the rights of victims of crime with language needs, testing out hub approaches to Law Centre services and others. 

## **WEBSITE – GET HELP PAGE** 

Last year LCN launched it’s new website with view to continue to develop sections of the website as funds became available. This year, with a grant from the National Lotteries Community Fund - Awards for All – we commenced work on enhancing the _Get Help_ page. 

The _Get Help_ page is an important resource that aims to help people find the help they need. 

LCN cannot provide legal advice but each day we receive enquiries from people desperate for assistance. 

In 2024-25 LCN received the following enquiries: 

28 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Communications Highlights** 

This year saw a shift in LCN’s comms, particularly around the use of social media. LCN made the decision to leave X on 3rd February 2025. Prior to this, a Bluesky account was set up in December 2024. 

A ‘Being Better Known’ briefing (an overview of the network’s comms setup and capacity) was drawn up in response to the Law Centres Conference in 2024. This and a draft communications plan has fed into a larger upcoming piece of work: an LCN communications strategy setting out LCN’s priorities and key messages 

## **Analytics: social media, newsletter analytics, media requests, media coverage** 

Full year social media and newsletter analytics collected this quarter. Comparisons with previous years show: 

- Supporters Newsletter: subscriber growth of 24.4% in 2024–25 compared to 10.94% in 2023–24 and 5% in 2022–23 

- LinkedIn: follower growth rate of 32% in 2024–5 compared to 36% in 2023–24 and 27.3% in 2022–3. LinkedIn followers have more than doubled since 1 April 2023 

- Facebook follower growth rate of 1.6% in 2024–5 compared to 4.5%in 2023–24 and 3.4% in 2022–3 

Media requests 

- 31 media requests (both reactive and proactive) in 2024–5. 8 resulted in published coverage (26%) 

- 24 media requests (both reactive and proactive) in 2023–4. 10 resulted in published coverage (42%) 

Media coverage 

- 94 Law Centre/LCN media appearances in 2024–25 

- 62% media appearances were in national rather than local outlets 

- LCN was involved in 18% of the coverage Coverage included: 

- KCAL’s DWP discrimination case which made national news. 

29 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

- Housing court duty schemes with Bradford Law Centre staff and clients featured in the published article 

- Feature on Law Centres and poverty made the front cover of The Law Society Gazette Magazine November edition which included 16 Law Centre spokespeople. Covid 19 inquiry and other features in Gazette throughout the year 

- BBC One Morning Live. Filmed at Greater Manchester Law Centre, and with a client at Bristol Law Centre which also resulted in a short film on litigants in person 

## **Supporters Newsletter** 

- 12 editions this year: see summary. 

- Editions ranged from Southwark Law Centre’s Homeless Patients Legal Advocacy Service, KCALC’s DWP discrimination case, LCN’s Victims of Crime report and Law Centre perspectives on disability benefits cuts 

## **Website news posts** 

- 21 in the past year. See summary. 

## **London Marathon fundraiser** 

- Selected LCN’s runner, designed an LCN-branded running top and set up a fundraising page for a campaign which raised £1360 

## **Bulletins** 

- Kept Law Centres in the loop with weekly Bulletins across the year comprising updates, events and more 

## **Supporting Law Centre comms:** 

- Established and supported Communications community of practice (CommsNet) with 5 meetings 

- Inform Law Centres with communications news, training and tools and shared resources 

- Created an awards calendar for Law Centres to encourage nominating staff 

- Law Centre award nominations 

- Branding -New logo and brand guidelines our Citizens Advice members who are Law Centres. 

## **Social media round-up** 

- Promoted LCN's policy positions (and legal aid) in the following examples: 

30 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

31 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **Progress made throughout the year on Objective 3:** 

32 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **The Future - the next 10 years** 

The simple reality is that the speed of change is such that detailed planning for any longer than 6-12 months is often of very limited value as the staffing, funding, political and technological environment changes at a pace which means that strategic and operational planning need to be agile and adaptable (to ensure that opportunities are taken and that risks are managed and mitigated). 

For this reason, LCN has changed its approach to business planning. Instead of annual reviews, we have implemented a 6 monthly review process. At each review, detail for the coming six months will be updated and the plan will be extended so that it always looks at least three years into the future. 

In December 2019 LCN set out a longer term (10 years) outlook for Law Centres and for LCN. This gives us a clear sense of direction and aspiration. In early 2025 we reviewed the 10 year outlook. Below is our ambition: 

33 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **The next 5 years** 

LCN’s new strategic plan based on the updated Theory of Change has identified that in the coming 5 years we will focus on the following: 

## **The Year Ahead - 2025/2026** 

Following the external review of LCN and the continued focus on our new Theory of Change, in 2025-2026 LCN aims to continue to work towards the following 3 objectives: 

**1. Help Law Centres to thrive – getting more help to people in need** 

**2. Strengthen the network of Law Centres – solving bigger problems together** 

## **3. Amplify the collective voice of Law Centres – speaking out for change** 

We will also further develop our monitoring and evaluation framework. Considerable progress was made this year, but that work will be implemented in the coming year. 

## **Fundraising Practice** 

As for many charities, raising voluntary funds from trusts, foundations and individuals is a vital source of income for LCN, enabling us to fulfil our charitable objectives as effectively as possible.  We are very grateful for the support given by all our donors. 

LCN believes that fundraising should be an open, honest and respectful process. We aim to build and maintain solid partnerships with our supporters and donors, based on mutual understanding and shared values.  In developing our approach to fundraising we have taken account of the Code of Fundraising Practice issued by the Fundraising Regulator. LCN is registered with the Fundraising Regulator. 

LCN operates with a small internal fundraising team. LCN does not, nor will not, engage in face-to-face or telephone fundraising. LCN has received no complaints about its fundraising activities either during the financial year or subsequently. 

34 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

## **GDPR and Cyber Essential** 

LCN continues to monitor our compliance with GDPR.  LCN's Privacy Policy, published on our website, clearly states what personal data LCN will hold in relation to supporters and how this data will be used. It also sets out how individuals can raise concerns or complaints. In 2023-2024, we undertook the work to be certified as having met the Cyber Essential standard. 

## **Financial review** 

The total net incoming resources for LCN were £48,874 (2024: incoming resources £32,386). 

LCN had a net deficit on unrestricted funds of (£9,467). Together with the accumulated surplus brought forward from previous years, the charitable company now has unrestricted funds of £89,432 (2024 £98,899). 

Our main source of unrestricted funds continues to be from subscriptions from Law Centres and donations. In addition, a contribution this year of £7,683 (2024: £5,483) as gifts-in-kind was generously provided by several law firms. 

Restricted funds carried forward on 31 March 2025 amounted to £272,643 (2024: £214,302) This is sufficient for the activities for which the funds were provided. 

## **Reserves policy** 

The Executive Committee has considered the following factors when considering a reserves policy: 

- the organisation’s contractual obligations to its staff in terms of parental rights, sickness pay and redundancy provisions; 

- the organisation’s obligation to maintain a safe and clean working environment; 

- that certain equipment is essential for our work; 

- that an increasing proportion of the organisation’s income is now derived from fixed term project grants. 

The Executive Committee agreed that LCN should aim to maintain unrestricted funds equal to six month’s core service running costs. This amounts to £177,000 The current level of unrestricted reserves is £89,432 at Balance Sheet date. This is sufficient for LCN to run for 3 months. 

The level of unrestricted reserves and available cash is sufficient for LCN to meet its obligations should it cease trading. The Executive Committee has budgeted to break even in the coming year. LCN aims to build reserves to the level they believe is prudent given the current circumstances in the UK. 

## **Going Concern** 

At its meeting on 14 July 2025, the Executive Committee considered whether LCN will be a going concern for the coming twelve months. The EC was provided with draft end of year accounts, Quarter 1 2025-2026 Management Accounts including the Balance Sheet, revised budget 2025-2026 and budget projection for 2026-2027, cash flow projections to April 2026 and LCN Fundraising Strategy.  They also considered Charity Commission Guidance as well as Guidance from the Auditors. 

The EC discussed whether LCN has sufficient reserves to cover its liabilities should it have to close; they assessed whether the documents indicated that LCN is on sound financial footing for the immediate future. They considered the Reserves policy, how LCN manages its finances, its staffing requirements, its charitable objects, its strategic plan, its obligations to funders, the safeguards it has in place to protect against fraud, its leases and premises, and our current banking arrangements. Importantly the Committee considered the current funding climate. They asked whether LCN is robust enough to address unexpected situations. Finally, they discussed the likelihood of the number of Law Centres increasing or decreasing in coming years and what impact that would have. It was also asked whether LCN had considered merging with other charities. It was agreed that the Finance Sub-Committee 

35 



**Law Centres Federation Report of the Executive Committee for the year ended 31 March 2025** 

should monitor cashflow and funding opportunities on a regular basis alongside the finance reports. It was agreed to review going concern at each EC meeting. 

**The Executive Committee agreed that LCN is a going concern until the end of 2025.** They also noted that it needs to continue to secure core funding so that its financial position will be stronger in coming years. 

## **Statement of Trustees** ’ **Responsibilities** 

The trustees (who are also directors of the Law Centres Federation for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102. 

Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.  They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the trustees are aware: 

- there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.  Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **Events since the end of the year** 

In the opinion of the Executive Committee no event since the balance sheet date significantly affects the company’s financial position. However, the Executive Committee is continually monitoring LCN's current and future finances. 

Having carried out a detailed review of the Charity's resources and the current economic challenges facing both the Charity and its members, together with the review of Going Concern discussed above, the Trustees are satisfied that the Charity has sufficient cash flows to meet its liabilities as they fall due for at least one year from the date of approval of the financial statements. 

Approved by the Executive Committee on 13 October 2025 and signed on its behalf by: 

.................................... 

Helen Rogers Chair of Trustees 

36 



**Independent auditors’ report To the members of Law Centres Federation For the year ended 31 March 2025** 

## **Opinion** 

We have audited the financial statements of Law Centres Federation (the ‘Charity’) for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

- give a true and fair view of the state of the Charityʼs affairs as at 31 March 2025 and of its income and expenditure for the year then ended; 

- • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorʼs responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCʼs Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditorʼs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material 

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work 

37 



**Independent auditors’ report To the members of Law Centres Federation For the year ended 31 March 2025** 

we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the trusteesʼ report (incorporating the directorsʼ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trusteesʼ report (incorporating the directorsʼ report) have been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report. 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; 

- the financial statements are not in agreement with the accounting records and returns; 

- • certain disclosures of trusteesʼ remuneration specified by law are not made; or 

- we have not obtained all the information and explanations necessary for the purposes of our audit. 

## **Responsibilities of the trustees** 

As explained more fully in the trusteesʼ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the Charityʼs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. 

## **Our responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorʼs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. 

38 



**Independent auditors’ report To the members of Law Centres Federation For the year ended 31 March 2025** 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: 

- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity's policies and procedures relating to the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. 

- We inspected the minutes of meetings of those charged with governance. 

- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. 

- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Councilʼs website at: [www.frc.org.uk/auditorsresponsibilities]. This description forms part of our auditorʼs report. 

This report is made solely to the Charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed. 

## A hha ory Epteon 

**Anthony Epton (Senior Statutory Auditor) for and on behalf of Goldwins Limited Statutory Auditor Chartered Accountants 75 Maygrove Road West Hampstead London NW6 2EG** 

## **15 October 2025** 

39 



## **LAW CENTRES FEDERATION** 

## **Statement of financial activities (incorporating an income and expenditure account)** 

## **For the year ended 31 March 2025** 

|**Note**<br>**Income and Endowments**<br>Donations<br>**2a**<br>Charitable activities<br>**2b**<br>Investments<br>Other<br>**2c**<br>**Total**<br>**Expenditure on:**<br>Raising funds<br>**3**<br>Charitable activities<br>**Total**<br>**Net income/(expenditure)**<br>**Transfers between funds**<br>**10**<br>**Net movement in funds**<br>**10**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|**Restricted**<br>**£**<br>602,035<br>**602,035**<br>568,819<br>**568,819**<br>33,216<br>25,125<br>**58,341**<br>214,302<br>**272,643**|**Unrestricted**<br>**£**<br>152,219<br>341,647<br>520<br>26,854<br>**521,240**<br>37,583<br>467,999<br>**505,582**<br>15,658<br>(25,125)<br>**(9,467)**<br>98,899<br>**89,432**|**2025**<br>**Total**<br>**£**<br>**152,219**<br>**943,682**<br>**520**<br>**26,854**<br>**1,123,275**<br>**37,583**<br>**1,036,818**<br>**1,074,401**<br>**48,874**<br>-<br>**48,874**<br>**313,201**<br>**362,075**|**2024**<br>**Total**<br>£<br>125,489<br>965,738<br>478<br>5,273|
|---|---|---|---|---|
|||||**1,096,978**|
|||||50,853<br>1,013,739|
|||||**1,064,592**|
|||||**32,386**<br>-|
|||||**32,386**|
|||||**280,815**|
|||||**313,201**|



All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. 

The accompanying notes form part of these financial statements. 

40 



## **LAW CENTRES FEDERATION** 

## **Balance sheet** 

## **As at 31 March 2025** 

|**As at 31 March 2025**||||
|---|---|---|---|
|||**2025**|**2024**|
||**Note**|**£**|£|
|**Fixed Assets**||||
|Tangible Fixed Assets|**9**|**-**|224|
|||**-**|224|
|**Current assets**||||
|Debtors|**7**|101,010|135,208|
|Cash at bank and in hand||397,763|372,417|
|Total Current Assets||498,773|507,625|
|**Creditors: amounts falling due within one year**|**8**|(136,698)|(194,648)|
|**Net current assets**||**362,075**|**312,977**|
|**Net Assets**||**362,075**|**313,201**|
|**Funds**|**10**|||
|**Restricted funds**||||
|In surplus||**272,643**|**214,302**|
|**Unrestricted funds**||||
|General fund||**89,432**|**98,899**|
|**Total funds**||**362,075**|**313,201**|



These financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. 

**Approved and authorised for distribution by the Executive Committee on 13 October 2025 and signed on its behalf by** 

Helen Rogers Chair 

Victor McAllister Treasurer 

The accompanying notes form part of these financial statements. 

**Company no. 2433492** 

41 



## **LAW CENTRES FEDERATION** 

## **Cash Flow Statement** 

|**For theyear ended 31 March 2025**|**For theyear ended 31 March 2025**|||
|---|---|---|---|
|**Cash flows from operating activities:**<br>Net cash provided by / (used in) in operating activities<br>**Cash flows from investing activities:**<br>Interest income<br>**Net cash provided by investing activities**<br>Change in cash and cash equivalents in the reporting period<br>**Cash and cash equivalents at the beginning of the reporting period**<br>**Cash and cash equivalents at the end of the reporting period**<br>**Analysis of cash and cash equivalents**<br>Cash in hand<br>**Total cash and cash equivalents**<br>**Analysis of changes in net debt**<br>**01 April 2024**<br>**Cash flows**<br>**£**<br>**£**<br>**Cash**<br>372,417<br>**25,346**<br>**Total**<br>372,417<br>**25,346**||**2025**<br>**£**<br>**24,826**<br>**520**<br>**520**<br>**25,346**<br>**372,417**<br>**397,763**<br>**2025**<br>**£**<br>**397,763**<br>**397,763**<br>**31 March 2025**<br>**£**<br>**397,763**<br>**397,763**|**2024**<br>£<br>76,183<br>478<br>478<br>76,661<br>295,756<br>**372,417**<br>**2024**<br>£<br>**372,417**<br>**372,417**|
||372,417<br>**25,346**|||



42 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

## **1.1) Accounting policies** 


## **Basis of Preparation** 

- a) The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. 

- b) Voluntary income is received by way of donations and gifts and is included in full in the statement of financial activities when there is entitlement, it is measurable and receipt is probable. Intangible income is recognised as a gift in kind where the provider of the service has incurred a financial cost and is valued at the value to the charity. Income is deferred when it relates to a specific later period, or there are conditions yet to be fulfilled for entitlement. 

- c) Subscription income from Law Centre members is recognised in the year in which it relates. 

- d) Gifts in Kind reflect the costs of rooms, catering and staff support from Law Firms and other suppliers to promote seminars, training and advice sessions conducted by Law Centres Federation as well as pro bono legal advice provided to LCF. Gifts in Kind are either valued by the suppliers undertaking the work or, where this is not immediately obtainable, by taking a reasonable estimate of the length of time involved in doing the work multiplied by the Standard London pro-bono rate. 

- e) Grants are recognised in full in the statement of financial activities in the year in which they are receivable. 

- f) Resources expended are recognised in the period in which they are incurred.  Resources expended include irrecoverable VAT. 

Resources expended are allocated to the particular activity where the cost relates directly to that activity.  However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which is an estimate, based on staff time, of the amount attributable to each activity. 

- Direct service provision 

   - Cost of generating voluntary income 

   - Governance costs, which are included within support costs,  include the management of the charity's assets, organisational management and compliance with constitutional and statutory requirements. 

- g) The costs of generating voluntary income relate to the costs incurred by the charity in raising funds for the charitable work. p p g 

- h) over its expected useful life. The useful lives are as follows: Computer equipment 4 years Office equipment 4 years 

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. During the period of their depreciation, assets are reviewed for impairment if circumstances indicated their carrying value may exceed their net realisable value and value in use. 

- i) Restricted funds are to be used for specific purposes as laid down by the donor.  Expenditure which meets these criteria is charged to the fund. 

- j) Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity. 

- k) Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities in the year in which they fall due. 

## **1.2) Going concern basis** 

The Executive Committee at each of its meetings throughout 2024 - 2025 considered its financial position and  whether LCF continued to be a going concern. At its meeting on 13 July 2025. it also considered the guidance provided by the Charity Commission in relation to 'going concern'. The EC also considered LCN's ability to sustain and grow its membership and its cash position. The Executive Committee's Finance Sub-Committee monitored risk, LCF's future funding 'pipeline' and the financial position of Law Centres as part of its judgement about 'going concern'. LCF secured 3 new multi-year grants and 3 new short-term grants during 2024-2025 and continues to submit other funding applications. 

EC noted that there is sufficient cash for the year ahead. There is concern that LCN's free reserves have dropped below the Charity Commission's recommendation of holding equivalent of 3 months of running costs. The EC are taking the necessary steps to mitigate this risk and aim to rebuild reserves in 2025/26. EC agreed that LCN is a going concern. The charitable company therefore continues to adopt the going concern  in preparing its financial statements. 

## **1.3) Accounting estimates and judgements** 

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements, nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. 

43 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

## **1.4) Staff Policies** 

The costs of short-term employee benefits are recognised as a liability and an expense. 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment or to provide termination benefits. 

## **1.5) Financial Instruments** 

## **Basic Financial Instruments** 

The charity only holds basic financial instruments as defined by FRS 102. 

## a) **Cash and cash equivalents** 

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less. 

## b) **Debtors and creditors** 

Debtors and creditors receivable or payable within one year of the reporting date are carried initially at their transaction price and subsequently at the recoverable amount. Debtors and creditors that are receivable of payable in more than one year are carried at their present value of the expected future receipts or payment discounted at a market rate of interest. 

44 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

|**For theyear ended 31 March 2025**||
|---|---|
|**2a.**<br>**Donations**<br>**2025**<br>**2024**<br>**Restricted**<br>**Unrestricted**<br>**Total**<br>**Total**<br>**£**<br>**£**<br>**£**<br>£<br>Subscriptions - Law Centre members<br>-<br>115,100<br>**115,100**<br>95,100<br>Donations<br>- <br>37,119 <br>**37,119**<br>30,389<br>**Total**<br>- <br>**152,219**<br>**152,219**<br>**125,489**<br>**2b.**<br>**Charitable Activities**<br>**2025**<br>**2024**<br>**Restricted**<br>**Unrestricted**<br>**Total**<br>**Total**<br>**£**<br>**£**<br>**£**<br>£<br>AB Charitable Trust<br>-<br>69,000<br>**69,000**<br>55,000<br>Allen & Overy Foundation<br>-<br>-<br>**-**<br>8,000<br>Awards For All<br>19,700<br>-<br>**19,700**<br>-<br>Baring Foundations<br>191,206<br>-<br>**191,206**<br>184,454<br>Bell Foundation<br>16,679<br>-<br>**16,679**<br>7,210<br>City Bridge Trust<br>88,275<br>-<br>**88,275**<br>-<br>East Midland Business Ltd<br>**-**<br>-<br>-<br>15,000<br>Esmee Fairbairn Foundation<br>**-**<br>-<br>-<br>65,000<br>John Ellerman Foundation<br>-<br>48,000<br>**48,000**<br>48,000<br>Law Society<br>22,500<br>-<br>**22,500**<br>22,500<br>LLST - Cost of Living<br>28,675<br>10,000<br>**38,675**<br>65,990<br>LLST - Propel<br>225,000<br>-<br>**225,000**<br>225,000<br>Paul Hamilyn Foundation<br>**-**<br>-<br>-<br>100,000<br>Talent Fund<br>10,000<br>-<br>**10,000**<br>-<br>The Legal Education Foundation<br>**-**<br>65,000<br>**65,000**<br>22,500<br>Services to LCs<br>**-**<br>135,116<br>**135,116**<br>124,101<br>Gifts in Kind<br>**-**<br>7,683<br>**7,683**<br>5,483<br>Annual conference<br>**-**<br>6,848<br>**6,848**<br>-<br>IT - Digital Transformation (TNLCF)<br>**-**<br>-<br>-<br>17,500<br>**Total**<br>**602,035**<br>**341,647** <br>**943,682**<br>**965,738**<br>**2c**<br>**Other income**<br>**Total**<br>**Restricted**<br>**Unrestricted**<br>**2025**<br>**2024**<br>**£**<br>**£**<br>**£**<br>£<br>-<br>26,854<br>**26,854**<br>5,273<br>**Total**<br>- <br>26,854 <br>**26,854**<br>**5,273**<br>_In the preceding year, 2023-24, £425,584 of total income from charitable activities were related to unrestricted funds and £540,154_<br>_attributable to restricted funds._<br>Sundry income|**2025**<br>**2024**<br>**Restricted**<br>**Unrestricted**<br>**Total**<br>**Total**<br>**£**<br>**£**<br>**£**<br>£<br>-<br>115,100<br>**115,100**<br>95,100<br>- <br>37,119 <br>**37,119**<br>30,389|
||- <br>**152,219**<br>**152,219**<br>**125,489**|
||**2025**<br>**2024**<br>**Restricted**<br>**Unrestricted**<br>**Total**<br>**Total**<br>**£**<br>**£**<br>**£**<br>£<br>-<br>69,000<br>**69,000**<br>55,000<br>-<br>-<br>**-**<br>8,000<br>19,700<br>-<br>**19,700**<br>-<br>191,206<br>-<br>**191,206**<br>184,454<br>16,679<br>-<br>**16,679**<br>7,210<br>88,275<br>-<br>**88,275**<br>-<br>**-**<br>-<br>-<br>15,000<br>**-**<br>-<br>-<br>65,000<br>-<br>48,000<br>**48,000**<br>48,000<br>22,500<br>-<br>**22,500**<br>22,500<br>28,675<br>10,000<br>**38,675**<br>65,990<br>225,000<br>-<br>**225,000**<br>225,000<br>**-**<br>-<br>-<br>100,000<br>10,000<br>-<br>**10,000**<br>-<br>**-**<br>65,000<br>**65,000**<br>22,500<br>**-**<br>135,116<br>**135,116**<br>124,101<br>**-**<br>7,683<br>**7,683**<br>5,483<br>**-**<br>6,848<br>**6,848**<br>-<br>**-**<br>-<br>-<br>17,500|
||**602,035**<br>**341,647** <br>**943,682**<br>**965,738**|
||- <br>26,854 <br>**26,854**<br>**5,273**|



_In the preceding year, 2023-24, £5,273 were attributable to unrestricted income._ 

45 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

## **3 Total expenditure** 

|Staff costs<br>Staff Travel, Training, Recruitment & Mtgs<br>Governance costs<br>Premises costs<br>Office costs, ICT, Insurance & Comms<br>Legal and Professional Fees<br>Services to Law Centres<br>Grants & Payments to Law Centres<br>Annual Conference & Events<br>Subscriptions & Journals<br>Training and Course Costs<br>Website / Digital Development<br>Project specific cost<br>Gifts in Kind<br>**Total expenditure**<br>Support Costs<br>**Total expenditure**|**Raising**<br>**Funds**<br>**Charitable**<br>**Activities**<br>**Support**<br>**Costs**<br>**2025**<br>**2024**<br>**£**<br>**£**<br>**£**<br>**£**<br>£<br>34,614<br>375,127<br>76,742<br>**486,483**<br>456,148<br>-<br>2,320<br>5,408<br>**7,728**<br>10,752<br>-<br>14,173<br>-<br>**14,173**<br>28,220<br>-<br>28,237<br>-<br>**28,237**<br>26,817<br>-<br>12,666<br>-<br>**12,666**<br>10,621<br>-<br>3,089<br>-<br>**3,089**<br>3,430<br>-<br>128,986<br>-<br>**128,986**<br>119,206<br>-<br>323,795<br>-<br>**323,795**<br>310,678<br>-<br>14,054<br>-<br>**14,054**<br>-<br>-<br>7,712<br>-<br>**7,712**<br>8,872<br>-<br>1,824<br>-<br>**1,824**<br>1,963<br>-<br>11,157<br>-<br>**11,157**<br>54,336<br>-<br>26,815<br>-<br>**26,815**<br>28,067<br>-<br>7,682<br>-<br>**7,682**<br>5,483|
|---|---|
||**34,614**<br>**957,637**<br>**82,150**<br>**1,074,401**<br>**1,064,592**|
||2,969<br>**79,181 **<br>(82,150)<br>-<br>-|
||**37,583**<br>**1,036,818**<br>-<br>**1,074,401**<br>**1,064,592**|



_In the preceding year, 2023 -24, £562,045 of expenditure was attributable to unrestricted funds and £502,547 attributable to restricted funds._ 

## **3 Total expenditure  (comparision 2024)** 

|**Total expenditure  (comparision 2024)**||
|---|---|
|Staff costs<br>Staff Travel, Training, Recruitment & Mtgs<br>Governance costs<br>Premises costs<br>Office costs, ICT, Insurance & Comms<br>Legal and Professional Fees<br>Services to Law Centres<br>Grants & Payments to Law Centres<br>Annual Conference & Events<br>Subscriptions & Journals<br>Training and Course Costs<br>Website / Digital Development<br>Project specific cost<br>Gifts in Kind<br>Total expenditure<br>Support Costs<br>**Total expenditure**|**Raising**<br>**Funds**<br>**Charitable**<br>**Activities**<br>**Support**<br>**Costs**<br>**2024**<br>**2023**<br>£<br>£<br>£<br>£<br>£<br>45,152<br>355,926<br>55,070<br>456,148<br>481,490<br>-<br>7,524<br>3,228<br>10,752<br>13,145<br>-<br>28,220<br>-<br>28,220<br>11,362<br>-<br>26,817<br>-<br>26,817<br>25,967<br>-<br>6,954<br>3,667<br>10,621<br>8,735<br>-<br>3,430<br>-<br>3,430<br>9,495<br>-<br>119,206<br>-<br>119,206<br>77,776<br>-<br>310,678<br>-<br>310,678<br>128,482<br>-<br>-<br>-<br>-<br>23,947<br>-<br>8,872<br>-<br>8,872<br>10,186<br>-<br>1,963<br>-<br>1,963<br>12,422<br>-<br>54,336<br>-<br>54,336<br>24,936<br>-<br>28,067<br>-<br>28,067<br>231,845<br>-<br>5,483<br>-<br>5,483<br>9,470|
||45,152<br>957,475<br>61,965<br>1,064,592<br>1,069,258<br>5,701<br>56,264<br>(61,965)<br>-<br>-|
||**50,853**<br>**1,013,739**<br>**-**<br>**1,064,592**<br>**1,069,258**|



46 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

|**3a**<br>**Analysis of Grant Payments to Law Centres**<br>**Funders**<br>Baring Foundation<br>LLST -  Cost of Living<br>LLST -  Propel<br>**Total**<br>**3b**<br>**Analysis of governance costs**<br>Annual Report<br>Audit fees<br>Independent examiner fees (2023)<br>EC travel (reimbursed)<br>Governance meetings<br>**Total**<br>**4 Net Income / (Expenditure) for the year**<br>This is stated after charging:<br>Executive Committee's reimbursed expenses<br>Auditors' remuneration<br>Audit*<br>Independent Examination<br>Operating lease rentals:<br>property|**2025**<br>**£**<br>**133,875**<br>**25,578**<br>**164,342**<br>**323,795**<br>**2025**<br>**£**<br>**1,969**<br>**11,400**<br>**-**<br>**212**<br>**592**<br>**14,173**<br>**2025**<br>**£**<br>**11,400**<br>**11,112**|**2024**<br>£<br>126,918<br>55,000<br>128,760|
|---|---|---|
|||**310,678**|
|||**2024**<br>£<br>3,972<br>17,700<br>4,440<br>1,276<br>832|
|||**28,220**|
|||**2024**<br>£<br>1,276<br>14,750<br>4,400<br>10,584|



*Audit Fees for the financial year 2023-24 totalled £14,750 (excluding VAT).An independent examination was undertaken relating to the prior year ended 31 March 2023, fees paid totalled 10,000 of which £4k was paid / incurred during current year ended 31 March 2024 

## **5 Staff costs and numbers** 

|Staff costs were as follows:<br>Salaries and wages<br>Social security costs<br>Pension contributions<br>**Total**<br>**5a.**<br>**Staff costs by activities**<br>Raising Funds<br>Charitable Activities<br>Support Cost<br>**Total**|**2025**<br>**£**<br>**417,964**<br>**39,252**<br>**29,267**<br>**486,483**<br>**2025**<br>**£**<br>**34,614**<br>**375,126**<br>**76,743**<br>**486,483**|**2024**<br>£<br>397,651<br>30,661<br>27,836|
|---|---|---|
|||**456,148**|
|||**2024**<br>£<br>45,153<br>355,925<br>55,070|
|||**456,148**|



One employee earned more than £60,000 during the year. 

Total pension contributions paid during the year in relation to this employee was £5,018 (2023-24: £4,841). 

## **5b. Staff numbers by activities** 

The average monthly number of employees (full-time equivalent) during the year is as follows: 

|Direct Service provision<br>Average Employee Numbers<br>Cost of generating income<br>Support costs|**2025**<br>2024<br>**No.**<br>No.<br>**2**<br>4<br>**3**<br>3<br>**7**<br>10<br>**12**<br>11<br>**Head Count**|**Full  Time Equivalent**<br>**2025**<br>**2024**<br>**0.4**<br>0.7<br>**1.5**<br>1.3<br>**6.4**<br>6.4<br>**8.3**<br>8.4|**Full  Time Equivalent**<br>**2025**<br>**2024**<br>**0.4**<br>0.7<br>**1.5**<br>1.3<br>**6.4**<br>6.4<br>**8.3**<br>8.4|
|---|---|---|---|
||||8.4|



Staff have been allocated to areas of work where they spend most time. 

47 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

## **5c. Key Management Personel** 

The Key Management of the Charity is considered to be the Director, Finance Officer & Trustees. The total employee benefits of the key management personnel were £99,533 (2023-24: £98,250), which includes total employer NIC Contributions of £4,718 (net of 5k employment Allowance) and total employer pension contributions of £6,202 

Trustees are not remunerated but are reimbursed for travel and subsistence expenses incurred through attendance of governance meetings. 

Executive Committee expenses of £212 were incurred in 2024- 2025 (£1,276 in 2023-24). None of the 17 members were remunerated. 

## **6 Taxation** 

All income is charitable and applied for charitable purposes only and thus is exempt from Corporation Tax. 

## **7 Debtors** 

|Grants receivable<br>Prepayments<br>Conference fees<br>Membership & Lexis Nexis<br>VAT Due<br>Professional Indemnity Insurance<br>Other debtors<br>**Total**<br>**8 Creditors:**<br>Trade creditors<br>Taxation and social security<br>Accruals<br>Pension contributions<br>Deferred Income<br>Amount held on behalf of Law Centres<br>Other creditors<br>**Total**<br>**8a.**<br>**Deferred Income**<br>Balance at the beginning of the year<br>Amount relesased to income in the year<br>Amount deferred in the year<br>**Balance at the end of the year**|**2025**<br>**£**<br>**5,560**<br>**34,001**<br>**680**<br>**31,757**<br>**2,784**<br>**23,880**<br>**2,348**<br>**101,010**<br>**2025**<br>**£**<br>**17,951**<br>**11,134**<br>**15,714**<br>**6,406**<br>**83,124**<br>**0**<br>**2,369**<br>**136,698**<br>**2025**<br>**£**<br>**97,966**<br>**97,966**<br>**83,124**<br>**83,124**|**2024**<br>£<br>3,605<br>32,819<br>300<br>27,164<br>4,546<br>61,011<br>5,763|
|---|---|---|
|||**135,208**|
|||**2024**<br>£<br>24,243<br>10,464<br>26,284<br>6,441<br>97,966<br>27,673<br>1,577|
|||**194,648**|
|||**2024**<br>£<br>70,380<br>70,380<br>97,966|
|||**97,966**|



Deferred income for the year includes £83,124 for invoicing of the Professional Indemnity Insurance in March 25, which relates to the next financial year 2025-26  Deferred income of £97,966 in 2024 corresponds to the invoicing of the Professional Indemnity Insurance(£87,966) and grant in advance from the Talent fund (£10,000), which was applicable to and released in the 2024-25 financial year. 

48 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

|**r theyear ended 31 March 2025**|||
|---|---|---|
|**9 Fixed assets**<br>**Cost**<br>As at 01 April 2024<br>Additions<br>As at 31 March 2025<br>**Depreciation**<br>As at 01 April 2024<br>Charge for the year<br>As at 31 March 2025<br>**Net book value**<br>As at 31 March 2024<br>**As at 31 March 2025**|**Computer**<br>**equipment**<br>**£**<br>**15,838**<br>-<br>**15,838**<br>15,614<br>224<br>15,838<br>224<br>-|**Total**<br>**£**<br>**15,838**<br>**-**|
|||**15,838**|
|||**15,614**<br>**224**|
|||**15,838**|
||||
|||**224**|
|||-|



|**10 Movements in funds**<br>**Restricted funds:**<br>Awards For All<br>Baring Foundation<br>Bell Foundation<br>City Bridge Trust<br>Law Society<br>LLST - Cost of Living<br>LLST - PROPEL<br>Talent Fund<br>**Unrestricted funds**<br>**Total Restricted Funds**<br>**Total Funds**|**At the start**<br>**of the year**<br>**Incoming**<br>**resources**<br>**Outgoing**<br>**resources**<br>**Transfers**<br>**At the end**<br>**of the year**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>19,700<br>12,868<br>-<br>**6,832**<br>153,152<br>191,206<br>187,288<br>-<br>**157,070**<br>-<br>16,679<br>16,679<br>-<br>-<br>-<br>88,275<br>65,482<br>-<br>**22,793**<br>-<br>22,500<br>40,932<br>25,125<br>**6,693**<br>-<br>28,675<br>28,675<br>-<br>-<br>61,150<br>225,000<br>206,895<br>-<br>**79,255**<br>-<br>10,000<br>10,000<br>-<br>-|
|---|---|
||**214,302**<br>**602,035**<br>**568,819**<br>**25,125**<br>**272,643**|
||**98,899**<br>**521,240**<br>**505,582**<br>**(25,125)**<br>**89,432**|
|||
||**313,201**<br>**1,123,275**<br>**1,074,401**<br>-<br>**362,075**|



49 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

**Movements in funds  (2024)** 

|Baring Foundation<br>Bell Foundation<br>IT - Digital Transformation (TNLCF)<br>Law Society<br>London Legal Support Trust - Cost of Living<br>London Legal Support Trust - Propel<br>Philip King Charitable Trust<br>TLEF - Workforce Development<br>**Unrestricted funds**<br>General Fund<br>**Total Funds**<br>**Total Restricted Funds**<br>_Designated Fund_|**At the start**<br>**of the year**<br>**Incoming**<br>**resources**<br>**Outgoing**<br>**resources**<br>**Transfers**<br>**At the end**<br>**of the year**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>139,153<br>184,454<br>170,455<br>-<br>153,152<br>-<br>7,210<br>7,210<br>-<br>-<br>12,917<br>17,500<br>39,142<br>8,725<br>-<br>-<br>22,500<br>22,500<br>-<br>-<br>-<br>60,990<br>60,990<br>-<br>-<br>-<br>225,000<br>163,850<br>-<br>61,150<br>15,900<br>-<br>15,900<br>-<br>-<br>-<br>22,500<br>22,500<br>-<br>-|
|---|---|
||**167,970**<br>**540,154**<br>**502,547**<br>**8,725**<br>**214,302**|
||**112,845**<br>**556,824**<br>**562,045**<br>**(8,725)**<br>**78,306**<br>92,252<br>556,824<br>562,045<br>(8,725)<br>78,306<br>_20,593_<br>-<br>-<br>_(20,593)_<br>-|
||**280,815**<br>**1,096,978**<br>**1,064,592**<br>**-**<br>**313,201**|



## **10 Purposes of RESTRICTED grant funds received:** 

**Awards for All:** restricted 1 year grant to toredevelop the _Get Help_ page of LCN's website. 

**Baring Foundation:** restricted 3 year grant to undertake in-depth work with three Law Centres (Suffolk, Vauxhall (Liverpool) and Derbyshire) to develop and scale hub activities in their locales to achieve longer-term social change for their communities and beyond. 

**Bell Foundation** : Project initially lead by Harrow Law Centre to support victims of Crime, particularly those who speak languages other than English. LCN's role is to extend the learning from Harrow's project to other Law Centres with view to establish model in other parts of the UK and to finalise and advocate on the findings of the FOI report. 

**City Bridge Trust** 5 year programme to work with London Law Centres and Centres of Excellence to build capacity, digital and data skills, to develop digital maturity, to develop a data standard and to harness the data to give voice to Londoners on issues that concern them. 

**Legal Education Foundation:** Workforce Development - 1 year restricted grant to scope a scheme to assist Law Centres outside London recruit and retain staff. This project ended in 2024 

**London Leagal Support Trust - Cost of Living Project:** Funds grant to support London Law Centres work to increase advice capacity to help people affected by the rising cost of living; improve community outreach; increase provision of specialist legal advice in the borough of Haringey. 

**London Legal Support Trust - PROPEL:** 3 year grant to develop London Law Centres' workforce, including funding legal apprentices at 5 Law Centres. 

**The Law Society:** Two year grant to review and further develop the Law Centres' Platform aimed at improving online collaboration, support, and sharing of resources. 

**National Lottery Community Digital Fund:** Final year of a three year grant aimed at digital transformation within Law Centres. £8,725 was transferred from LCN unrestricted funds to cover the budget overspend. The project ended in 2024. 

## **Purposes of UNRESTRICTED grant funds received:** 

The following funding is included within the unrestricted funding line in note 10. See note 2b for a detailed breakdown of unrestricted income. 

**AB Charitable Trust** : 5 year unrestricted core fund grant to LCN to further our aims and objectives in line with LCN'S Strategic Plan 2024-2029 

**Esmee Fairbairn Foundation:** An unrestricted two year grant to contribute to core costs to maintain capacity and delivery on LCN’s policy objectives. This grant ended in 2024. 

50 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

## **10 Movements in funds (continued)** 

## **Purposes of UNRESTRICTED grant funds received:** 

**John Ellerman Foundation:** An unrestricted three year core fund granted to support LCN focus on further developing its strategy and theory of change, and to make community engagement more central to our work. 

**Legal Education Foundation:** A three year core grant to assist LCN to Increase our capacity to support Law Centres in the face of increasingly complex challenges. 

**Paul Hamlyn Foundation:** An unrestricted five year core grant provided to work on influencing government departments and other public bodies on the future of a fair and effective justice system, particularly in response to the impact of changes arising from the Covid pandemic. 

|**11 Net Assets by Fund**<br>Cash<br>Other Net Assets<br>**Net Current Assets**<br>**11 Net Assets by Fund (2024 Comparison)**<br>**Net Current Assets**<br>**Total**<br>**12 Operating lease commitments**<br>Within 1 year<br>**Property**<br>Fixed Assets<br>Cash<br>Other Net Assets<br>Fixed Assets|**Unrestricted**<br>**£**<br>-<br>**115,335**|**Restricted**<br>**£**<br>-<br>**282,428**|**2025**<br>**Total**<br>**£**<br>-<br>**397,763**|
|---|---|---|---|
||**(25,903)**|**(9,785)**|**(35,688)**|
||**89,432**|**272,643**|**362,075**|
||**Unrestricted**<br>£<br>224<br>122,075<br>(23,399)|**Restricted**<br>£<br>-<br>250,344<br>(36,042)|**2024**<br>**Total**<br>£<br>224<br>372,417<br>(59,440)|
||**98,676**|**214,302**|**312,977**|
||**98,899 **|**214,302 **|**313,201**|
|||**2025**<br>**£**<br>**11,112**<br>**11,112**|**2024**<br>£<br>10,584|
||||**10,584**|



51 



## **LAW CENTRES FEDERATION** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2025** 

## **13 Related party transactions** 

Some members of LCN's board of trustees work in community Law Centres that receive funds from LCN. When funding decisions are taken in respect of these community Law Centres, the relevant representative is excluded from the discussions taking place. 

|Camden Law Centre<br>Derbyshire Law Centre<br>Ealing  Law Centre<br>South West london Law Centre<br>Vauxhall Law Centre<br> **Reconciliation of net income/expenditure to net cash flow from operating activities**<br>**Net expenditure as per the statement of financial activities**<br>Adjustments for:<br>Depreciation charges<br>Investment income<br>Decrease in debtors<br>Decrease/Increase in creditors<br>**Net cash used in operating activities**|**2025**<br>**£**<br>**-**<br>**42,526**<br>**35,704**<br>**21,526**<br>**42,525**<br>**2025**<br>**£**<br>**48,874**<br>224<br>(520)<br>34,198<br>(57,950)<br>**24,826**|**2024**<br>£<br>15,900<br>40,666<br>25,752<br>25,752<br>39,852<br>**2024**<br>£<br>**32,386**<br>824<br>(478)<br>8,854<br>34,597|
|---|---|---|
|||**76,183**|



## **14 Reconciliation of net income/expenditure to net cash flow from operating activities** 

## **COMPARATIVE INFORMATION:Statement of financial activities (incorporating an income and expenditure account) for year ended 31 March 2023** 

|**Note**<br>**15 Income and Endowments**<br>Donations<br>**2a**<br>Charitable activities<br>**2b**<br>Investments<br>Other<br>**2c**<br>**Total**<br>**Expenditure on:**<br>Raising funds<br>Charitable activities<br>**3**<br>**Total**<br>**Net income/(expenditure)**<br>**Transfers between funds**<br>**10**<br>**Total funds Carried forward**<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward|**Restricted**<br>£<br>-<br>540,154<br>-<br>-<br>**540,154**<br>-<br>502,547<br>**502,547**<br>37,607<br>8,725<br>46,332<br>167,970<br>**214,302**|**Unrestricted**<br>£<br>125,489<br>425,584<br>478<br>5,273<br>**556,824**<br>50,853<br>511,192<br>**562,045**<br>(5,221)<br>(8,725)<br>(13,946)<br>112,845<br>**98,899**|**2024**<br>**Total**<br>**£**<br>**125,489**<br>**965,738**<br>**478**<br>**5,273**<br>**1,096,978**<br>**50,853**<br>**1,013,739**<br>**1,064,592**<br>32,386<br>-<br>32,386<br>**280,815**<br>**313,201**|**2023**<br>Total<br>£<br>169,244<br>728,686<br>169<br>14,492|
|---|---|---|---|---|
|||||912,591|
|||||43,475<br>1,025,783|
|||||1,069,258|
|||||(156,667)<br>-|
|||||(156,667)|
|||||437,482|
|||||**280,815**|



52 

