Study: Early free legal aid for low-income people yields up to fivefold return
Free, early legal assistance for people with low incomes in the Netherlands delivers a return of three to five euros for every euro invested and significantly reduces health problems, workplace disruptions, and debt, according to a new study released this week. The report was prepared by SEO Economisch Onderzoek and commissioned by the Juridisch Loket, the national organization that provides free legal assistance to people who cannot afford it, Trouw reported.
Researchers concluded that early legal intervention reduces stress, helps prevent financial instability, and lowers the risk that disputes develop into prolonged and costly personal and societal problems. Those outcomes were converted into monetary estimates to assess the broader impact on society.
The Juridisch Loket helps about 9,000 people each week, advising clients on matters including conflicts with landlords, workplace disputes, and divorces. The organization operates a nationwide network of more than 400 lawyers and has an annual budget of 54 million euros.
According to the study, legal conflicts often persist for years and can lead to serious psychological complaints and prolonged stress. Addressing these problems at an early stage can prevent escalation. The resulting health-related benefits alone are estimated to be worth between 103 million and 232 million euros to society.
Work-related consequences also play a role. Legal disputes can cause absenteeism and, in some cases, job loss. Early legal intervention that reduces sick leave or prevents dismissal generates an estimated societal benefit of 13 million to 15 million euros. In addition, researchers found that legal assistance can help prevent debt and promote financial stability, producing further savings measured in the millions of euros.
“We experience the added value of early, accessible legal aid every day at our counters and on the phone,” Willemijn van Helden, a board member of the Juridisch Loket, told Trouw. “It is enormously valuable for people when we can help them resolve problems so they can move on. This research demonstrates that investing in first-line legal aid yields significant returns.
The researchers stressed that their findings are based on estimates and that not all effects can be fully expressed in financial terms. One such effect is increased trust in the rule of law when people receive timely and effective legal help. Determining the monetary value of that trust would require further research.
The report also points to structural limitations beyond the Juridisch Loket’s control. The effectiveness of referrals depends on other parts of the legal aid system, including the courts, where long waiting times before cases are heard can still cause proceedings to drag on.
Van Helden called on the new cabinet to continue investing in accessible legal aid. “It is good that the new cabinet is focusing on preventive measures to increase well-being, promote health, and prevent debt,” she said. “Legal aid plays a crucial role in that. On paper, there is legal aid for everyone, but in practice, it is still too often out of reach for many people.”
