Nicole Keeling
The Ministry of Justice (MoJ), responsible for essential public services such as prisons, probation, courts, and legal aid, continues to grapple with significant funding challenges. Despite some recent increases in budget allocations, spending on justice in 2025–26 will still fall far short of the levels seen prior to the 2010s, a trend that reflects ongoing financial strain on the system.
A new report from the Institute for Fiscal Studies (IFS), supported by the Nuffield Foundation, sheds light on the MoJ’s funding history over the past quarter-century. The findings are stark: in real terms, the department’s budget in 2025–26 is expected to be 14% lower than in 2007–08, and per capita spending will be a striking 24% lower, even though the economy has grown by 27% and the population by 16% over the same period.
The period between 2007–08 and 2016–17 saw one of the most severe funding reductions, with the MoJ’s day-to-day budget being slashed by 33%. This was part of a broader trend of cuts across government, but the MoJ’s budget fared far worse than most other departments. For instance, while the MoJ faced steep reductions, the Department of Health saw a substantial 25% increase in its budget, and other “unprotected” departments, such as those dealing with housing and transport, saw smaller cuts. In contrast, the MoJ was left with disproportionate budget constraints that affected critical services, including legal aid, which experienced a 29% real-terms reduction.
Although there has been some relief in the form of additional funding in recent years, including a significant boost in the 2024 Autumn Budget, it is insufficient to reverse the effects of earlier austerity. In fact, the total MoJ budget—including both operating and capital spending—is expected to grow by an average of 5.6% annually between 2023–24 and 2025–26. Despite this, the MoJ’s total budget will still be no higher in 2025–26 than it was 20 years earlier, despite the significant growth of both the economy and the population in that time.
Capital funding has seen a notable increase, with substantial investments directed towards improving the prison system. Between 2019 and 2023, more than 80% of the MoJ’s capital expenditure went towards prison infrastructure. However, this focus on capital spending does not address the broader, day-to-day challenges faced by the MoJ, particularly in areas such as probation, courts, and legal aid, where cuts have continued to impact service delivery.
The IFS report reveals that if the MoJ’s day-to-day funding had increased at the same rate as other government departments since 2007–08, its budget would have been £4.5 billion higher in 2024–25. Even compared to other “unprotected” departments, it would have received an additional £1 billion, highlighting the disproportionate nature of the cuts.
Looking forward, the outlook for the MoJ remains uncertain. With Chancellor Rachel Reeves emphasising a focus on reducing “waste” within Whitehall, the department could face further financial pressures in the forthcoming Spending Review. As Richard Atkinson, President of the Law Society, has pointed out, while recent steps to increase legal aid are encouraging, sustained and comprehensive investment across all aspects of the justice system is critical to prevent a breakdown in services.
The financial constraints faced by the MoJ over the past decade and a half are starkly apparent in the latest IFS report. The justice system is still struggling to recover from the harshest cuts, and without adequate and sustained funding, the future of justice in England and Wales may remain in jeopardy.