Solicitors in the UK will see their individual practising fees increase to £307 in the 2023/24 fiscal year, marking a 7% rise from the previous fee of £286, as reported by The Law Society Gazette.
This change has been officially confirmed by the Legal Services Board, which recently approved funding applications from both the Solicitors Regulation Authority (SRA) and the Law Society.
Projections for the total PC fee income in 2023 estimate £127.9 million, a notable increase from the £114.7 million recorded in the preceding year. This projection is based on the assumption that around 167,000 individuals will pay the fee.
For firms, PC fees will vary, starting from £100 for the smallest establishments and escalating to a minimum of £313,379 for firms with an annual turnover exceeding £150 million.
Of the total fee income, £67.6 million (53%) will be allocated to the SRA, while £35.1 million (27%) will go to the Law Society. The remaining £25.2 million will be distributed among various entities, including the Legal Ombudsman (£15.14 million), Legal Services Board (£4.62 million), Solicitors Disciplinary Tribunal (£4.77 million), and the Office for Professional Body Anti-Money Laundering Supervision (£700,000).
The Legal Services Board’s report also highlights that the SRA anticipates a significant 11.5% increase in staff costs for the upcoming financial year.
This increase can be attributed to expected pay raises and an expansion in staff numbers within various SRA functions, such as Anti-Money Laundering, Corporate Complaints, Authorisation, Thematic, Research and Analysis, and ICT departments.
Additionally, the Legal Services Board requested further details on ‘other costs’ amounting to £6.6 million in the SRA’s application. These costs encompass £1.2 million for consultancy, including support for the Legal Choices website; nearly £1.2 million for research; £1,080,000 for marketing, conferences, and exhibitions; and £575,000 for staff travel and subsistence.
As of July 2023, the SRA held £18.4 million in uncommitted reserves, while the Law Society’s anticipated reserves for the 2022/23 period amounted to £58.4 million.
Law Society president Lubna Shuja said:
“We welcome the LSB’s sensible decision for a small increase in the PC fee (PCF), which will underpin support for the profession and enable the Law Society to serve solicitors in England and Wales better.
’The income we receive from the PCF determines what we can do to support the profession and wider society. We have ambitious plans to deliver more of what our members have told us is important to them, including addressing threats to the rule of law and defending the profession from political attacks.”
