Applicants who are refused legal aid in medical negligence cases will be able to have the merits of their case reviewed by the charity Action for Victims of Medical Accidents under new arrangements being introduced by the Legal Aid Board. AVMA will draw up an independent report, to be available for the appeal against refusal. The move - along with restricting medical negligence work to specialist solicitors - is meant to ensure that public funds support only deserving cases.

The effects of a House of Lords ruling last July, changing the basis on which damages are calculated in catastrophic injury cases, are now starting to filter through. The Law Lords ruled that awards should in future be calculated on the basis that injury victims would invest in lower risk, lower return gilts rather than higher risk, higher return equities, and would therefore need larger lump sums. In November, three cases hit the headlines in which damages exceeded£3m.

The Legal Aid Board has reconsidered a decision not to fund clinical negligence cases where damages are likely to be less than£10,000. After representations, it has decided that aid will not normally be granted for cases worth less than£5,000, though there will be exceptions - for example, where liability is admitted.