The case before the High Court in London revolves around access to legal aid for immigration and asylum lawyers and is being brought by Duncan Lewis solicitors.

Mr Chalk, the Lord Chancellor, is accused of failing or refusing to raise rates for what is called “controlled work” — legal aid work in the immigration and asylum field.

Demand for this kind of work outstrips supply, with thousands of people unable to access legal aid. Lawyers and NGOs said that the UK government is fully aware of the problem as it has provided evidence in response to consultations in which it has stated that there are “devastating consequences” of inadequate legal aid.

Jeremy Bloom, of Duncan Lewis solicitors, said: “It is heartbreaking for us, but over the last five years we have had to make massive reductions in the number of legal aid asylum claims and appeals that we take on.

“Legal aid will never be wildly profitable, and that’s OK. But providers of legal aid cannot continue taking on work that causes financial losses. It is not sustainable, and the losers are the people who need representation.”

Nick Emmerson, president of the Law Society of England and Wales, said: “The civil justice system is in a precarious state and ultimately the ones who will suffer are those trying to seek justice.”