Plans for a shake-up of the legal profession, to be debated by MPs today, could lead to another fiasco like the miners’ compensation scheme, because trade unions would be exempt from consumer safeguards, Conservative MPs say.

The Legal Services Bill, which creates a new regulatory framework for lawyers, will not cover trade unions who give legal advice.

Jonathan Djanogly, the Tory justice spokesman, said: “The Government has agreed to exempt trade unions from its own legislation designed to protect consumers from receiving poor or unscrupulous legal advice.

“This will mean that trade unions’ own members cannot be assured that the legal advice they receive is up to standard.

“This is despite trade unions’ clear abuse of their nonregulated position, as discovered during the miners’ compensation scheme scandal.”

By the Law Society’s own estimate, there may be 150,000 dubious cases relating to the miners’ compensation, in which the Government spent an estimated £7.5 billion paying damages to former miners suffering from chronic respiratory disease or a crippling hand condition as a direct result of their work in the coal industry. Numerous solicitors’ firms, which took part in what has become the world’s largest personal injury compensation scheme, were accused of taking a slice of money from the sick miners’ compensation. Some trade unions became rich on the proceeds, taking payment for referring claimants.

The Legal Services Bill, which has already been discussed in the House of Lords, creates a new regulator for barristers, solicitors, legal executives and others offering legal advice. It also sets up a new unified complaints regime so that consumers with a complaint about a legal service go to one place.

But the Bill has made explicit provision to exempt trade unions and not-for-profit organisations.

Originally, this was for a transitional period only. But in June, Bridget Prentice, a Justice Minister, announced that she would be tabling amendments to ensure that trade unions, but not other not-for-profit organisations, would be wholly exempt.

The move followed lobbying by the trade unions and will mean that unions do not have to be licensed to give legal services to their members.

The Tories accuse the Government of making the concession because of the Labour Party’s reliance on union funding - £9 million in the past 12 months.

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