SRA abandons plans to reduce grants from Compensation Fund

The Solicitors Regulation Authority (SRA) has abandoned its plans to reduce the maximum grants made from the Compensation Fund.

This u-turn has been welcomed by The Law Society for England and Wales.

A spokesperson for the Law Society commented:

“We are pleased to hear that the SRA has decided not to reduce the single claim limit of the Compensation Fund from £2m to £500,000.

“In our response to the SRA’s consultation on changes to the Compensation Fund, we insisted the proposed cap was unnecessary. According to their own data, the average grant from the Fund is £20,000, with 75% of grants under £5,000. So, in practice the number of applications likely to be affected by a £500,000 ceiling would have been very low.

“But, at a time when other professional compensation schemes, such as the Financial Ombudsman Service, are increasing their maximum payouts, this change would have sent entirely the wrong message to consumers, undermining public confidence in the profession, and legal services more generally.

“Solicitors pride themselves on having high levels of consumer protection for their clients, the proposal to lower the Fund would have left consumers exposed to greater risk.

“It is a matter of principle that people defrauded by their solicitor should be eligible to apply for compensation, regardless of their means or perceived deservedness.

“We are happy to see the SRA has made the right decision in this matter, and recognised the paramount importance of its role protecting the interest of the consumers of solicitors’ legal services.”

Jennifer van Deursen

Jen is the Senior Media Officer for Today’s Conveyancer, Today’s Wills & Probate  and Today’s Family Lawyer.

Having gained a degree in Multimedia Computing, Jen fell into a content role after successfully applying for a job at Cheshire Police. During her 6-year service, she took on the role as personal Press Officer under the first Police and Crime Commissioner for Cheshire and worked in the busy press office for the force.

Jen has experience in the marketing and communication sphere, which stems from her time in the public sector, private care sector and now here at the Practical Vision Network, where she can utilise her skills and challenge herself further.

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